Kootenai County revokes tax-exempt status for Grace Sandpoint parsonage, cites permitting and documentation gaps

Kootenai County commissioners voted June 30 to revoke the property tax exemption for parcel AIN 125746, known in county records as the Grace Sandpoint parsonage, concluding the residence lacks the local land-use authorization and documentation the county requires for continued exemption under Idaho law.

The decision followed a public challenge from Aaron Kuczynski, who told the Board he had submitted evidence suggesting the property no longer functions as a parsonage tied to an active church in Bonner County and questioned whether the residence clearly serves the religious organization’s activities required by Idaho Code 63-602B. "The question is very narrow, whether this particular residence qualifies for a property tax exemption under Idaho Code Section 63-602B," Kuczynski said during public comment.

County counsel Dave Ferguson briefed commissioners on the legal standard, telling the Board that exemptions must be "strictly and narrowly construed," are disfavored, and must be established by "clear and convincing evidence." Ferguson identified Idaho Code 63-602B as the controlling statute covering property owned by religious organizations and residences used in furtherance of their purposes.

The applicant, who identified himself as Ben Ortiz, disputed the challenge and presented materials he said show ongoing ministry activity produced from his home office, including weekly online Bible studies, ministry tours he leads to the British Museum and trips to Israel, and other educational work tied to the Bible college. "It's the hub of everything I do," Ortiz said, describing the residence as the production base for his weekly studies and ministry work. He also acknowledged an administrative oversight in not updating the Secretary of State listing earlier but said he corrected that record after being notified by the assessor.

Board and staff questions centered on three concerns: whether the Bonner County church location remains an active entity tied to the Kootenai County property; whether the residence is owned or rented; and whether operating church functions from that residence in unincorporated Kootenai County requires a conditional-use permit from Community Development. Staff told Ortiz the county would expect a conditional-use permit before it could reauthorize a tax exemption for a residence used for church functions. Ortiz said he was previously unaware of the local permitting requirement and agreed to pursue the process.

After hearing the testimony, a commissioner moved and a second supported repeal of the exemption for AIN 125746. The clerk called the roll and the chair recorded the affirmative vote, resulting in the revocation. The transcript does not provide a complete named roll-call in printed form, but the motion was accepted and recorded as passed.

County staff directed Ortiz to apply for the conditional-use permit at the Community Development office in the courthouse (directions were provided during the meeting) and said that, if the property is within Coeur d'Alene city limits rather than unincorporated county land, he would need to pursue permitting through the city. Staff explained that, if the local land-use procedures are followed and the property is authorized for church functions, the applicant may reapply for tax-exempt status for a future tax year.

The county meeting packet referenced the exemption AIN 125746 and included governance documents dating to 2022–2023; commissioners asked Ortiz to supply missing minutes and documentation covering the intervening period. Ortiz said he could provide additional board minutes and records to the assessor's office.

The Board adjourned the hearing at 11:25 a.m. Ortiz was told where to file the conditional-use application and that the county would not continue the exemption absent the permitting and supporting documentation required under county procedures and Idaho Code.

Ending note: The county cited Idaho Code 63-602B as the statutory basis for exemption review and instructed the applicant to pursue local land-use authorization before seeking reinstatement of the parsonage exemption.