After lengthy debate, the Jefferson County Commission agreed last week to give the Montana Tunnels Mine one last chance to pay back taxes. The mine owes more than $5.362 million in back taxes, penalties and interest.
Commissioner Leonard Wortman said the county could take a tax deed on the mine for the back taxes. But since the operating permit for the mine is separate from the property ownership, “Somebody could own a gold mine and not be able to operate it,” he said. He also expressed concern that the county could wind up with liability for environmental clean up at the mine if it takes over the property.
County Attorney Steve Haddon said, “I do not believe it’s in the county’s best interest to get into the chain of title on this thing.”
If the mine does not get back up and operating, said Wortman, “we’re never going to get any taxes on it.” But getting into payment agreements with the mine has not been working either, noted Commissioner Bob Mullen.
The county has signed payment plans with the mine several times without the mine honoring the agreement, he said. The difference in the agreement reached last week is that the county offers to forgive some penalties and interest if the mine makes six timely payments as in the agreement. Over $1.8 million of the amount owing is in penalties and interest.
The commission discussed at length the status of other property owned by the mine and possible ways to get some leverage. They also discussed the possibility of hiring a consultant to review options if the current agreement does not stand up. Under the agreement, the first payment will be due in March, with periodic payments due through 2021.
