LEXINGTON, Ky. (AP) - A Kentucky prosecutor says he trying a new tactic to collect delinquent property taxes linked to West Virginia Gov. Jim Justice.
The Lexington Herald-Leader reports that Knott County Attorney Tim Bates is intercepting royalty payments from local coal operators to Kentucky Fuel - which was once owned by Justice but is now controlled by his children. The Justice family company owes more than $2 million in back taxes.
Bates’ office has tried several times to collect the delinquent taxes, but only recently tried to collect the money through garnishment.
Bates filed the order in August directing KI-Coal and King Brothers Coal to give Knott County the money meant for Kentucky Fuel under any mining agreement. Both of those companies are owned by Larry and Barry King. Bates says the Kings have an agreement to mine coal controlled by Kentucky Fuel.
On Monday, Bates also issued a new garnishment order directing Adella Coal - which was incorporated last year with Barry King as president - to hand over any money due to Kentucky Fuel to the government.
Barry King said he was unhappy with the order, describing that he “was drug into it,” but declined to comment further.
Bates says the county hasn’t received any money yet, but expects payments soon.
“It’s revenue the school system could have used,” Bates said.
Earlier this year, Jay Justice, the governor’s son, told the newspaper that the company is working to pay off delinquent taxes.
“We’ve never bankrupted any company and we will always make good on our obligations,” Justice said. “Sometimes it takes awhile.”
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Information from: Lexington Herald-Leader, http://www.kentucky.com
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