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City wins Supreme Court affirmation; county must redistribute withheld penalties and interest

Post Falls City Council · October 8, 2025

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Summary

City Attorney reported a legal victory: Idaho Supreme Court affirmed a lower court ruling that Kootenai County must distribute penalties and interest from delinquent property taxes proportionately to taxing districts. The city has recovered about $126,000 in principal plus roughly $20,000 in interest (about $147,000) and received attorneys' fees.

City Attorney Field Harrington updated council on successful litigation over Kootenai County’s prior practice of withholding penalties and interest on delinquent property taxes. Harrington said the county had begun withholding those funds in October 2022; the cities and other taxing districts challenged…

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