Created on Wednesday, 26 November 2008 16:31
NorthWestern Corporation d/b/a NorthWestern Energy announced today that it has resolved its dispute with the Montana Department of Revenue over property tax assessments related to the years 2005 through 2008.
As a result of this settlement, NorthWestern has agreed to withdraw the protest and receive a refund of approximately $4.7 million of the previously paid property taxes. As a result of the settlement, the State of Montana will release the previously protested property taxes to the schools and municipalities.
NorthWestern had previously paid the taxes for those years but protested portions of those property taxes, as permitted by state law. Protested property tax amounts are held in escrow by the State of Montana and the applicable counties.
"We are pleased to have this issue resolved in a way that recognizes our customers' interests and releases much-needed cash for local schools and governments,” said Bob Rowe, president and CEO.
Since NorthWestern has a property tax tracker in Montana, approximately $2.8 million of the refund will be returned to customers and the remainder will be reflected as a reduction of property tax expense in the Company’s fourth quarter financial results for 2008.