Latah County, Moscow still undecided on using CARES Act funds

The Moscow City Council and Latah County Commissioners again delayed their decision to accept or reject state initiative funding that would provide property tax relief to local taxpayers.

The city council made its decision at Tuesday’s council meeting and the commissioners made the call at a meeting Wednesday. The county commissioners likely will make a decision Monday.

Gov. Brad Little proposed the Public Safety Initiative Grant, which utilizes federal Coronavirus, Aid, Relief and Economic Security (CARES) Act funds, that would provide funding for public safety payroll expenses to city and county governments that agreed to participate in the initiative, and further agreed to provide the resulting savings as property tax relief to the taxpayers of the participating local governments by foregoing the taxes that would otherwise traditionally have been collected.

Many Idaho municipalities have chosen not to opt into the funding because they worried Little’s program was illegal. Moscow and Latah County officials share the same concerns.

Last week, the U.S. Department of the Treasury provided further guidance regarding CARES Act funding that seems to remove some of those worries, City Supervisor Gary Riedner told the Moscow City Council on Tuesday.

Moscow would receive $1.6 million and Latah County was approved for $1.9 million if the two bodies accepted the funding. After adjusting for administrative costs and subtracting the tax increment owed to the Moscow Urban Renewal Agency, the net amount available for tax relief is slightly less than the two amounts.

Moscow and Latah County filed letters of intent to participate in the initiative earlier this summer, but the letters did not bind the entities to take the funds.

The Moscow City Council was expected to make a decision to opt in or out of the initiative by today, which is when the L-2 property tax certification is due to the county.

But Riedner said Mayor Bill Lambert sent a letter to Latah County Commissioners last week requesting an extension to file the L-2 for seven working days, or Sept. 21, which is allowable under Idaho code. The commissioners approved that request Wednesday.

Riedner said delayed filing of the L-2 allows the city to monitor the legal issues of the CARES Act and see if more guidance is provided by the state or federal government.

He said once the L-2 is submitted, the property tax levy for the fiscal 2021 year, which starts Oct. 1, is set no matter if the CARES Act funding is recalled or not.

“I want to buy as much possible time as we can in case some promulgation comes out of the court,” Riedner said.

Riedner said Tuesday that accepting the $1.6 million will reduce property taxes but “it won’t be a huge amount of money.”

Latah County Treasurer BJ Swanson said at the county’s fiscal 2021 budget hearing last month that large commercial property owners would reap great property tax relief if commissioners accept the $1.9 million, but a small single-family homeowner would experience very little relief.

Garrett Cabeza can be reached at (208) 883-4631, or by email to gcabeza@dnews.com.