HALIFAX — After three years of litigation, KapStone and Halifax County Tax department have come to a compromise. KapStone will pay penalties for 2007 and 2008 totaling over $33,500, but will be forgiven over $19,000 for 2009 penalties.

Advertisement

KapStone Property Tax Director Bruce Rifkind argued the company shouldn’t have to pay penalties for 2009. The litigation would not allow his company to list the property on time. Once litigation was settled, the property was listed immediately, and taxes were paid before they were due. “We weren’t trying to avoid paying taxes, we just wanted to pay what was right,” he said. “It’s hard to settle these things in a timely manner.”

In 2007, KapStone disagreed with Halifax County about the assessed value of the company’s property and equipment on Highway 48 between Gaston and Roanoke Rapids.

Appeals brought no relief and the company finally sought relief through the courts. After almost three years, the company and county finally settled in June, but KapStone felt having to pay penalties, especially for tax year 2009 would be like admitting guilt.

Halifax County Tax Assessor Charles Graham said he could not and would not recommend compromise. “The penalty is an incentive to list the taxes. “I do not believe they had any intent to ‘not do’ anything. They had a disagreement with us on several issues.”

Commissioner Rives Manning said he was concerned. “This is a dangerous precedent for us to set.” He made a motion to deny the appeal, and after a very long pause, was second by Marcella Smith. There was lengthy discussion on the situation, questions about the amount of penalties and how they effect the city and school taxes.  When the vote was called everyone voted unanimously to deny the appeal.

Williams however, next submitted a motion to forgive the penalties for 2009.

He said commissioners had to deny forgiving all the penalties, but make a motion to forgive just one year of penalties. County Attorney Bill McBlief said commissioners were free to handle the situation the way they wanted to.

The motion was second by Vice Chair James Pierce. More discussion ensued, but final vote was three to one, with Manning voting against forgiving the 2009 penalties.