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McDowell County sheriff says agreement reached on payment plan for coal company's back taxes

Reported by: Associated Press
Wednesday, July 16, 2014 3:13 AM EDT

McDowell County and Mechel Bluestone Inc. have reached an agreement on a payment plan for the remainder of back taxes owed by the Russian coal company.

Sheriff Martin West says an initial payment of $55,000 has been deposited in a bank trust account, and Moscow-based Mechel will pay about $66,000 per month over the next six months.

The company paid $800,000 in June after the sheriff's department filed a lawsuit over $1.2 million in back taxes. West has said that payment would help make up a budget shortfall for the County Commission and the county Board of Education for the fiscal year that began July 1. Eight county employees were laid off in June as a result of the shortfall.

Mechel operates mines and power plants and produces steel.


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