Dispute Arises Over City-Owned Land Near Cabela’s
Kootenai County Assessor Bèla Kovacs announced his intention to assess taxes on a property owned by the city of Post Falls, despite state laws generally exempting government-owned land from taxation. Kovacs shared the plan during public comments at the Post Falls City Council meeting on Tuesday evening, speaking in his official capacity as county assessor.
The property in question is a 4.11-acre parking lot next to Cabela’s in Post Falls, which the city has owned since 2012. Kovacs said he plans to include the property on the county’s tax rolls, arguing that “when we assess the value, it will not be exempt.”
Mayor Pushes Back Against Tax Plan
Mayor Ron Jacobson immediately objected to the idea, saying the property is legally non-taxable under Idaho law. “I will anxiously wait to see what the decision is when you opt to take a piece of property owned by the city that is non-taxable and try to assess taxes on it,” he told Kovacs.
Jacobson explained that the property had originally been reserved for a potential Citylink transit expansion that never materialized. Since then, the lot has remained unused.
Lost Tax Revenue and Legal Disputes
Kovacs said the property’s tax-exempt status has cost Kootenai County about $360,000 in uncollected taxes since 2012. He also mentioned that Cabela’s has repeatedly challenged its own property assessments and even sued the county in the past. Kovacs claimed his office was forced to settle lawsuits because it lacked sufficient funding to defend them, leading to about $260,000 in additional lost tax revenue.
Kootenai County Commissioner Bruce Mattare said he was unaware of Kovacs’ intent to tax the city-owned land before the meeting. He noted that commissioners have previously approved funding for the assessor’s legal defense in similar cases.
Legal Questions Surrounding the Proposal
Under Idaho law, “property belonging to any county or municipal corporation” is exempt from taxation. County records show the Cabela’s-adjacent parcel is officially listed as exempt.
Kovacs argued that Idaho’s Constitution requires uniform taxation and that the “actual and functional use” of a property should determine its taxable value. Mayor Jacobson said the city’s legal counsel believes Kovacs’ interpretation will not hold up under state law.
Kovacs has not yet explained how his office intends to proceed or how it would impose taxes on the property.
Related Coverage
- Idaho News – https://idahonews.co/idaho-news-3/
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