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The Problem With Secret Money
May 11, 2007
The settlement of a tax appeal involving Fletcher supporter Leonard Lawson likely has no link to Fletcher's personal legal defense fund, but if Anne Northup doesn't raise the question, she's not the pit bull she used to be.
Here's the deal, according to documents filed with the Kentucky Board of Tax Appeals.
Lawson's company, Mountain Enterprises, appealed the state of Kentucky's sales tax bill for $795,000 on the purchase of a $13,250,000 aircraft. After penalties and interest, the state revenue department said Mountain owed $965,000. As the appeal was headed to hearing, both sides agreed to a settlement that is undisclosed. One source familiar with the case told me it was for about half the original tax bill or close to $400,000. State law prohibits the release of that information so my sources number could not be confirmed.
The settlement occurred April 27, less than a month before election day. Lawson and his wife and son, who's president of Mountain Enterprises, all gave $1000 to Fletcher's campaign last year. There's a legitimate question to be raised from this.....did the Lawsons get a sweetheart deal because they're Fletcher supporters? Did the Lawsons recently give to Fletcher's defense fund and, in return, get a break on their tax bill? Again, this appears on its face to be a routine, legitimate dispute over taxes owed that resulted in a settlement both parties could live with. But with Fletcher keeping the names and donations to his legal defense fund secret, who knows?
Read the next couple of entries on this blog for Harper's Finances and a new Erwin problem.
Posted by mark.hebert at May 11, 2007 08:27 PM

