Article published Apr 6, 2008

PPL Montana's disputed taxes released to state, county, area schools

By KARL PUCKETT

Tribune Staff Writer

Eight years' worth of disputed property taxes totaling $18.4 million will be in the mail this week to Belt and Great Falls schools, Cascade County, the state of Montana and PPL Montana, Cascade County Treasurer Jess Anderson said Friday.

The money is from the settlement of one of the state's largest tax protests, between PPL Montana and the state Department of Revenue.

The case was settled in February, which freed up taxes held in escrow since 2000.

Lance Olson, chairman of the Cascade County Commission, said the $5 million the county will get will not be used to support ongoing operations, but rather for capital improvements such as new equipment.

PPL will get a refund of $2.1 million.

Departments had gone without such purchases during the eight-year protest period, Olson said.

"We hope now we can bring that up to speed and replace some of that aging equipment," Olson said.

Cascade County's $5 million share will be placed in 30 different funds.

The Road Department will get the most — $732,000 — followed by $630,000 for public safety.

Great Falls Public Schools will receive about $3.5 million, but it won't be used immediately.

Bob Odermann, executive director of business for Great Falls Public Schools, said that if the district used the money right away, it would end up losing $150,000 in state funding for every $100,000 in taxes it wouldn't levy as a result of the windfall.

Rather than risk losing the state funding, the district will place the settlement money in an excess reserve fund and use a portion to temper taxes each of the next five years.

"In the long run, we will be lowering the tax effort in the future," he said.

The $18.4 million being mailed to various boards in Cascade County is part of a $45 million tax protest by PPL Montana between 2000 and 2007 involving properties in 11 counties.

PPL reached a settlement with the state Department of Revenue in February, but local governments and school districts in Cascade County didn't know how much they would get until Anderson crunched the numbers and added in the interest.

"I didn't even know if I was going to see this before the end of my term," Anderson said.