P***ing Off Another County?

BoeingBoy

Veteran
Nov 9, 2003
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County, US Airways in tax dispute

The Mecklenburg County tax collector's office has filed a motion in U.S. Bankruptcy Court to collect more than $6 million in back taxes from US Airways Group Inc.

The city and county tax charges are for fiscal 2003. Local authorities had earlier filed claims for the taxes but recently found the court handling the airline's bankruptcy case has denied the claims.

County attorney Marvin Bethune says the tax collector's office didn't respond to a challenge of the claim because it never received notice from the court.

The lack of a challenge indicates a creditor is willing to forgive a debt, but Bethune says the county expects payment.

The airline has paid $6.6 million in property taxes for this fiscal year.

US Airways officials weren't immediately available for comment.
 
BoeingBoy said:
The city and county tax charges are for fiscal 2003. Local authorities had earlier filed claims for the taxes but recently found the court handling the airline's bankruptcy case has denied the claims.

County attorney Marvin Bethune says the tax collector's office didn't respond to a challenge of the claim because it never received notice from the court.

The lack of a challenge indicates a creditor is willing to forgive a debt, but Bethune says the county expects payment.

The airline has paid $6.6 million in property taxes for this fiscal year.
Hard to blame this one on CCY. When in bankruptcy, this stuff is routinely included. In fact, if it weren't included and paid by the airline, the court would likely have demanded that the payments be given back so it could decide on what should/shouldn't be paid.

It seems like either the Bankruptcy court made a mistake by never informing the county - or - more likely, the county attorney's office didn't pay attention to the notice and assumed that it would simply get paid. My guess - the county is SOL on this one and they probably would have been paid if they had just followed the proper procedure. US Airways probably couldn't go back and make that payment even if they wanted to without opening a serious can of worms with creditors who didn't get paid. Note that it says the taxes have been paid for the current fiscal year.
 

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