Story - The Meade County Messenger


Vol. 117, No. 19	May 13, 2009

Arch to receive tax overpayments from districts,
but the question is when

By LARRY SEE JR.
Messenger Staff

Arch Chemicals, Inc. is getting a refund of some overpaid taxes, but the question is when will the check arrive?

Meade County Sheriff’s Department office manager Pam Knott, said there is nothing written as to when the various taxing districts have to return the money. One option was to have the money refunded when the new taxes arrive later this year, with the department taking out the funds owed to Arch and giving the taxing district the remainder in their first payment.

The second option, and one which Arch is leaning toward, is asking all the districts to send the funds directly to Arch, without having to wait for the year-end payments.

“That would take the sheriff’s department out of the picture and we would not have to refund any of the money,” Knott said. “They had the option of going to the districts and getting the refund money faster and if they do, that it is out of our hands and on the districts.”

Knott reiterated she found nothing in writing as to when the taxing districts have to refund the money. The attorney for Arch, Mary Hamilton of Ernst and Young in New Jersey, said the firm is opting for the quicker approach.

The Meade County Board of Health during their annual May 7 meeting, agreed with the first option.

Health department clinic director Kristi Dupin said every taxing district has to repay the funds.

Dupin said Arch officials requested the taxing districts to waive the tax bill penalty fee. It was explained the tax bill went unpaid for a long period of time, thus the penalty charges.

Health board members unanimously opted not to waive the penalty fee.

It was explained all districts needed to agree to waive the penalty, and if one didn’t, that meant the fee wouldn’t be returned.

The health district has joined the county library and the fire department in denying the waiver, Knott said. Word hasn’t been received from the Extension office on their decision, and the school district isn’t affected.

The payback is the result of the fact Arch was overcharged on the inventory-in-transit tax.

This is a levy placed on any personal property located in a warehouse or distribution center, which will not stay at the location for more than six months, and is there for the purpose of subsequent shipment to an out-of-state destination. Property that stayed longer than six months is taxed as inventory at the corresponding higher rate.

Arch was taxed on items which were on railcars within their property, but were moving forward on subsequent shipment elsewhere.

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