Charter, Montana settle property tax dispute

HELENA – Charter Communications will drop a proposed ballot initiative after reaching a settlement with the state in its dispute over property taxes.

Revenue Director Mike Kadas said Thursday the settlement agreement lets Charter keep $9 million of $34 million in disputed taxes from 2010-2013. The other $25 million will be distributed to the state and counties.

Kadas says Charter will pay an additional $8.3 million in taxes for the years 2007-2009.

Going forward, the company will be taxed at the 6 percent rate for telecommunications service companies, not the 3 percent cable company rate.

Charter’s proposed ballot initiative would have asked voters to reverse a Montana Supreme Court decision that reclassified the company to pay the 6 percent rate.

Lee Newspapers of Montana first reported the settlement agreement.