COEUR d’ALENE — Kootenai County commissioners have authorized the cancelation of penalties and interest on tax bills that are paid late due to a typo which resulted in a multimillion dollar property value assessment error.

“At this time, it’s not even determined yet whether we’re going to need that authority,” Kootenai County Treasurer Steve Matheson told commissioners Tuesday.

But with the Thanksgiving holiday almost here, Matheson said it was prudent to seek the board’s permission in advance.

Last week, county elected officials convened to address an overvalued lakefront property in the Rockford Bay area. The front footage of the parcel was mistakenly entered by an appraiser as 6,966 feet instead of 69.66 feet, according to an assessor valuation amendment signed Oct. 24.

The error caused the property’s valuation to jump from $1.4 million in 2022 to $54.3 million this year. The property’s amended market value is $634,120.

Idaho law allows county commissioners to order a correction be made prior to the distribution of tax notices, which must happen by the fourth Monday in November. Matheson held off on the distribution so commissioners could order corrective action, which they did last week.

Since then, staff in the treasurer’s office have restarted the tax billing process and are reportedly more than halfway finished.

Matheson said the tax notices may be complete early next week but likely won’t be mailed until the following week.

“At this point, I don’t expect any interest to be calculated, because as long as (property owners) make the payment prior to Dec. 31, the only thing that will be assessed is a 2% penalty,” he said.

The property valuation change affects seven taxing districts: Kootenai County, the Coeur d’Alene School District, Worley Highway District #4, Worley Fire, Kootenai County EMS, North Idaho College and the Community Library Network.

The impact on those taxing districts is estimated to be between $200,000 and $250,000.