Mark, of Hayden, a self-described white separatist who declined to give his last name, said he has done nothing wrong, that the sculpture is just a snowman, KXLY-TV, Spokane, Wash., reported Wednesday.
The snowman had a pointed hat that was knocked off, and a noose in its outstretched right hand. At first, it was much smaller, but Mark rebuilt it to make it larger after someone tried to knock it over, the TV station reported.
Neighbors said Mark also has an Aryan Nations flag on display.
Mark infuriated residents in October when he allegedly passed out bullets on Halloween. He said he gave out only bullet casings, and did so only after he ran out of candy, KXLY-TV said.
Mark's home is approximately 100 yards away from Hayden Meadows Elementary School. Several parents called police about the snowman, and two Kootenai County sheriff's deputies went to Mark's home Wednesday.
They told him there is a state law against hanging nooses, which could have led to a criminal complaint against him if the noose hadn't been removed, the TV station said.