"Seems to be disagreement as to if it is taxable or not."

There really is not; once you know about the grant, it's easy to determine.

Who stated "not business?" Their grant application will tell you the specifics. You stated "County" and these typically are taxable Federally. It might not be taxable State. What matters is, a specific regulation or law excludes it, or not. If Not specifically excluded, it is taxable.

Go here: https://www.irs.gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions

That explains how the money filtered down. I have had this browser tab open for over a year:

https://commerce.mt.gov/Montana-Coronavirus-Relief/Awarded-Grants

And that has a MT reference that it is Taxable and they even link to that same IRS link I already gave.

About the only grants that are not taxed under the CARES funding is, for instance, specific HVAC improvement, Medical provider grants, and a few others which are codified in the funding language authorizing the fund disbursements.

No one can tell you without more details. We don't know the State, the reason, etc.

The majority of these grants are taxable. I've been following this since they got released. A majority of my clients are towns and local governmental entities.