More than $6 million has been released out of $24 million in assessed property tax money Intermountain Power Agency placed in an escrow account because of a dispute between Millard County and the IPA.
The money represents 1988 and 1989 assessed taxes protested by the IPA, according to Millard County Auditor John Hansen. It went to the county, the school district, special services districts and the Central Utah Water Conservancy District.The Millard School District was the greatest benefactor, getting almost $4 million. The county general fund coffers received more than $1 million while several special county service funds got substantial a-mounts.
The Central Utah Conservancy District received more than $245,000.
The tax revenue comes from the gigantic Intermountain Power Plantnorth of Delta. IPA is its operating agency.
Assessed tax amounts were protested through several complicated issues, among them state tax assessments and because power generated by the plant is sold outside Utah. Some issues are before the courts and some have been tentatively settled between the Millard County attorney and IPA officials.
IPA decided to release 26 percent of the principle and accrued interest that was on deposit as of Jan. 31. "We determined that there would be sufficient funds in the escrow account to cover any potential refund," said Reed Searle, IPA general manager.
It was also indicated that a Utah Supreme Court ruling in the Amax Magnesium Corp. case in Tooele was considered when IPA officials decided the money. The Supreme Court ruled that the corporation was unfairly taxed.