Move comes amid loss of access to MLS sales data
SANDPOINT — Bonner County is moving ahead with an ordinance requiring the disclosure of real estate sales information.
County commissioners voted unanimously Tuesday to develop the ordinance, which would require sales price disclosure when deeds are recorded. The decision comes a month after the assessor’s office was denied access to the Selkirk Association of Realtors’ Multiple Listing Service.
The county was using the data for comparable sales information to determine fair market values for property tax assessments. Idaho counties are required to assess properties at fair market value.
“We don’t have good ways to get comps,” said Commission Chairman Lewis Rich, who is concerned the accuracy of assessments will falter without disclosure.
“At least this will allow us to achieve equity,” he added.
The county’s access to the data was suspended indefinitely amid questions about how the county was using the data and whether the county even has standing to be a member of MLS.
The data was being used not only to inform assessments, but also to defend them during tax appeals. Landowners, meantime, were using the data to challenge their assessments.
Those who defended the association’s action point out the county’s has not always had access to the data yet still managed to develop assessed values. They also note that the MLS is a private work meant to serve association members, not the county.
But without MLS access, county officials say, the appraisal process becomes more laborious, which could end up costing taxpayers. Moreover, the county would have to rely on voluntary sales verification forms.
The county sent out 3,127 verification forms, but received only 1,332 forms back, according to the assessor’s office. Only 888 people filled out the form completely, but the sales information is suspect because it’s self-reported.
If the ordinance is adopted, the information would be held in confidence by the county and it would be exempt from Idaho’s public records law, said Louis Marshall, the county’s civil counsel.
“These are not public records and they will not be disclosed,” said Marshall.
Counties do not have the express authority to impose such a requirement, but one could argue they have implied authority given the state’s mandate requiring counties to assess at market value, according to William von Tagen, a deputy attorney general who heads up the Intergovernmental & Fiscal Law Division at the Idaho Attorney General’s Office.
State Rep. George Eskridge (R-Dover) asked for von Tagen’s take on the legality of such a move. In a reply, von Tagen told Eskridge an Idaho court has yet to rule on such a requirement and it could go either way.
“Unfortunately, in this particular case, I cannot predict the outcome with any degree of certainty,” von Tagen said in a Sept. 6 letter to Eskridge.
Commissioner Joe Young said he would like to see the county consult on matter with Kootenai County, which also is contemplating a disclosure ordinance, and conduct a public hearing in November.
Assessor Jerry Clemons believes the county has the right to impose such a rule.
“Our job is to reflect the market,” Clemons said.
