Tax Settlement Means Money for Special Districts

Johnson County’s acceptance of a $22.7 million tax settlement with Carbon Creek/US Realm is good news for the county’s special districts, who have had some pretty tight budgets in the last few years.

During a special meeting Tuesday, the commission agreed to a settlement for the company to pay an up-front amount of $10 million, and pay the remaining $12.7 million in monthly payments of $125,000 over the next eight years.

If the bankruptcy judge in the case accepts the agreement, the funds will be distributed to special districts in a lump sum, and then monthly payments based on their mill levies at the time the taxes were assessed.

County Attorney Tucker Ruby was asked what happens if the company neglects to pay the back taxes, and he explained the agreement gives the county more of a legal leg to stand on should that happen.

Ruby said the chances that the company doesn’t pay the settlement are very low in his mind, because it is in their best interest to pay the county.