Bisbee gives OK for tax distribution

BENTONVILLE — Benton County Judge Dave Bisbee signed an order Friday granting permission for the distribution of $1.4 million to the appropriate taxing entities.

Benton County Tax Collector Gloria Peterson filed a petition with Benton County Court seeking approval to distribute the $1,417,645.30 in taxes collected in 2007 and 2008. The money should have been sent to the appropriate entities, but instead it was placed in five bankaccounts, then went unnoticed, according to Peterson, who took office on Jan. 1.

Based on information the Benton County Tax Collector's Office has compiled, $1,261,704.32 for taxes was levied in 2006, while the remaining $155,940.98 was levied in 2007. The taxes were for 2006 and 2007 - meaning the money was collected in 2007 and 2008 - but was never sent to the taxing entities, according to information from Peterson.

George Spence, the county's attorney, said during Friday's hearing that the order calls for the money to be distributed on the prorated share each taxing entity received in those years.The collector could not determine the appropriate division of the tax receipts in the five accounts.

The money will be distributed among the cities, school districts, fire departments and parking districts. For example, the Bentonville School District will receive $412,526.16, while the Rogers School District is getting $401,699.09. According to the documents, the city of Rogers stands to receive $49,959.91. On the other end of the spectrum, Springtown would receive $18.73, and the Pleasure Heights Volunteer Fire Department would receive $6.01.

The funds will not be released until Nov. 2. Bisbee's order can be appealedwithin 30 days, which is the reason for the November distribution date.

Jason Kelly, who is the attorney for the city of Bella Vista, filed an objection to the distribution plan. Kelley's objection was to ensure the distribution plan would not negatively impact the suit that Bella Vista has pending against the county concerning taxes collected in 2006 in Bella Vista.

Bella Vista seeks the funds that were levied in 2006 before the city's incorporation, but collected in 2007 after Bella Vista's incorporation.

A hearing in the case is scheduled for Nov. 19 before Circuit Judge David Clinger.