Jackson and county sign deal that ends dispute over taxes

The road and bridge tax dispute is over.

Cape Girardeau County commissioners and Jackson Mayor Paul Sander signed court documents Monday, officially ending the tax battle that began in October 2002.

Last month, both sides announced that settlement terms had been reached, but it took until Monday for attorneys on both sides to work out the legal wrinkles.

The disagreement was over whether the county owed the city 25 percent of the county road and bridge tax revenue it collected from residents of Jackson as provided in Section 137.556 of Missouri statutes.

Jackson has argued since 2002 that it is due the money, while the county said the city misread the statute. The county initially argued that the statute only applied to "special" taxes, which require a vote by the residents of the county. The county later changed its stance, saying the statute only applied to taxes not mentioned specifically in the state's constitution.

In the end, the county came around to the city's way of thinking.

The county will begin paying the 25 percent, roughly $80,000 per year, about the same amount that would be needed for a mile of gravel road.

Other terms of the agreement are:

* The county will also pay Jackson about $350,000 in five yearly installments.

* Jackson will, within 30 days of the settlement, submit to county commissioners proposed road and bridge projects for 2005. The commissioners may make and supervise the improvements or may approve requests by the city.

* Any funds not used by the city from the road and bride taxes due it each year will be rolled over to the next year.

* The city will submit proposed projects for each year with specifications and engineering estimates by Dec. 31 each year.

* The commissioners will make a decision on those projects by the end of the first quarter each year.

The final settlement was about $123,000 less than an offer made by the city before the matter went to court. It is also $116,000 less than the county offered last March toward the East Main Street interchange if the city dropped the lawsuit and released the county of its obligation of paying future road and bridge taxes.

It is also about $120,000 less than what Associate Judge Byron Luber ordered the county to pay to the city.

The county spent roughly $13,000 for attorney fees for this court battle.

Jackson city attorney Tom Ludwig said the city couldn't immediately say how much money it spent on the case because it would take some time to separate the road and bridge invoices from the other work that he performs for the city.

bmiller@semissourian.com

243-6635