County asks court to wade in on dispute

SANDPOINT — Bonner County commissioners are asking a 1st District judge to settle a dispute over whether the Priest River Yacht Club is exempt from Idaho property taxes.

The commission, which acts as the county’s board of tax equalization, rejected the club’s assertion that it qualifies for the exemption because it’s a fraternal, benevolent or charitable organization.

The nonprofit was formed in 1955 and had enjoyed a tax-exempt status until 2009, when the county conducted a legal review and determined that the yacht club did not qualify for the exemption.

The yacht club consists of about an acre of waterfront on the Pend Oreille River with a 1,632-square-foot building and a dock. The land is assessed at $490,000 and its improvements are assessed at $84,020, resulting in a total value of $574,020, according to court documents.

At the time the dispute arose, the taxes on the land and its improvements were estimated to be in the range of $4,000-$5,000, according to county officials.

The yacht club challenged the county’s refusal to honor the exemption during the 2009 tax year by petitioning the Idaho Board of Tax Appeals, which ruled last year that the club did indeed qualify for the exemption. The appeals board overturned the county commission’s decision.

The appeals board concluded the club qualified as a fraternal organization as defined by a 1992 Idaho Supreme Court case.

The district court case is being heard by Judge Benjamin Simpson.