Town & Inn to settle on back taxes
The Bath Town Council and the owners of The Country Inn have reached an agreement on the payment of back taxes and fees that the hotel owes to the town.
Details of the settlement were announced to Bath Town Council members by Mayor Susan Webster two weeks ago.
The agreement, in the form of a court judgment, orders 5042 Holdings Limited, and Nancy Sostaric as an individual, to pay $47,795 in back hotel taxes, penalties and interest.
In addition, 5042 Holding Limited must pay $12,705 in unpaid garbage, public safety and street fees to the town. The total judgment is $60,500.
The agreement sets up a payment schedule of $15,000 upon the execution of the order, $10,000 payments on November 1, December 1 and January 15, 2012.
The remaining $15,500 is to be paid on February 15, 2012.
A five-day grace period is allowed on payments except for the first one.
The order further states that the inn must maintain the payment of all current hotel-motel taxes due the town.
Under the settlement, the town will forego claims for garbage fees at a Cornelius Street home and the Inn at Fairfax Street, which are also owned by Sostaric.
Nor will the town ask for attorney’s fees if the inn doesn’t default on payments.
The judgment order will not take effect until signed by both the lawyers for the inn and Circuit Court Judge John Yoder.
At press time, town attorney Richard Gay had not yet received the signed order or the first payment.