Kootenai County assessor briefs commissioners on valuation rules for Section 42 housing after mediation findings

Kootenai County Assessor Bayla Kovacs and Scott Larson, manager of the assessor’s commercial and specialized division, briefed Board of Equalization commissioners on June 11, 2025, about changes in how the assessor’s office is treating expenses and credits for Section 42 properties following recent mediation and follow-up research. No appeals or formal board decisions were taken at the meeting.

The briefing matters because the assessor’s office says the research affects how Section 42 properties are valued for property tax purposes and could lead to appeals by property owners. The office provided handouts showing how the changes would have altered assessed value for all Section 42 properties in the county had they been applied in the prior year.

Larson told commissioners he contacted the Idaho Tax Commission, IFHA and local CPAs after mediation to clarify four main questions: (1) whether reserves for replacement may be treated as an operating expense (the office’s research says they generally should not), (2) how federal/state tax…