11-year FVCC tax shirked

Back taxes and fees with interest that total $41,937.30 for the Lincoln County campus of Flathead Valley Community College appears to be a clerical issue that can be resolved by a vote of commissioners.

At issue are delinquent taxes, refuse fees and interest on the community college that date back to 2001 when the college still was Lincoln County Community College. The most recent tax bill — 2012 — for the college totals $3,320.65, which includes $2,430 for refuse and a combined $890.65 for both Libby street maintenance bills.

So, for 11 years, taxes on the building went unpaid, but it was not because FVCC Director Pat Pezzelle did not try to correct the error.

“Every year, when we got the bill, I would call the county and tell them we didn’t own the building, the county did,” Pezzelle said. “I knew it wasn’t our bill to pay.”

Lincoln County Presiding Commissioner Tony Berget said on two previous occasions the FVCC issue came before commissioners during his tenure, and, while other delinquent bills were forgiven, the FVCC bill was not.

“There were not only county taxes on there but city taxes as well,” Berget said. “I was good with forgiving the county portion, but at the county, we can’t forgive city tax bills. So, it was kind of brushed aside.”

Berget said the agreement dates back to when FVCC took over the building, and he understood it was the county that would be responsible for the taxes, a point reiterated by Pazzelle because he was familiar with paperwork as FVCC was making mortgage payments.

“It was a 10-year deal, and I think it was just 2012 that we paid it off,” Pezzelle said of the three-way agreement that involved county ownership with combined city and FVCC payments.

Lincoln County Treasurer Nancy Trotter Higgins most recently brought the issue to light during her monthly treasurer’s report to commissioners. Higgins noted the delinquent tax on the campus located on U.S. Highway 2 as she sought to remove real property taxes that she believed were not collectible. Most of those locations were mobile homes and failed businesses that were either moved or abandoned by former residents.

During that meeting, commissioners unanimously voted to clear most of those delinquent bills, some dating back to 1999. Because the FVCC tax bill remained to be investigated, it could not be forgiven until that probe was completed. Pending approval by the Department of Revenue, the bill could be rectified by a vote of commissioners.

Flathead Valley Community College came to occupy the current building after it transitioned from Lincoln County Campus. The delinquent tax bills date back to 2001.

County Administrator Bill Bischoff said the commissioners are looking into the tax bill, but indicated it will “probably” be forgiven because the county does not tax itself, a point echoed by Berget. Bischoff said the bill is something that should have been addressed when the county assumed ownership of the building in 2001. 

“Normally not,” Bischoff said when asked whether the county would be given the option to pay than write off the tax.

Higgins said the reason she brought the delinquent tax list to the commissioners’ attention was to clear those accounts from the county tax roll.

“We’re just trying to clean those up,” Higgins told commissioners when she presented the list.

Higgins said before the bill can be removed, the county must contact the Department of Revenue to get an understanding of how to proceed, a point Berget mentioned because of the multiple taxing bodies on the bill. It is also the reason the bill was not addressed previously, he said.

“My guess is, yes, it probably will be cleared up because it is county property, but we’re going to get the Department of Revenue involved,” Higgins said.