COEUR D'ALENE, Idaho — State legislators declined to settle a dispute over whether counties or cities get to keep the fees and interest charged on delinquent property taxes.
The House Revenue and Taxation Committee considered House Bill 150 this week, which would require counties to distribute a proportional share of collected penalties and interest to the taxing districts.
Lawmakers voted Tuesday to hold the bill in committee, effectively killing it, and urged local officials to hammer out a compromise and return with a different bill.
“I think the counties and cities should get together and fix this problem on their own,” said Rep. Charlie Shepherd, R-Pollock.
Kootenai County Treasurer Steve Matheson announced last summer that the county would retain the penalties and interest in order to cover expenses incurred in collections, rather than distribute the money to the taxing districts.
Matheson said it costs Kootenai County around $1 million to generate, collect and distribute property taxes each year.
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