PENDLETON – Taxing districts throughout Oregon will receive less money from county tax collectors this spring because Qwest Communications is getting a tax refund.

In January, the state Department of Revenue and Qwest settled Qwest’s property value appeal for tax years 2003-04 and 2004-05, Rosemary Hardin of the Revenue Department said Tuesday. The settlement affected taxing districts in 27 Oregon counties.

By law, counties must refund the money to Qwest.

“We estimate the refund to be roughly $11.5 million for both tax years,” Hardin said.

That agreement reduced Qwest’s taxable value by $766 million statewide, including $22 million in Umatilla County, said Paul Chalmers, county director of assessment and taxation.

From Umatilla County alone, Qwest will receive a check totaling about $405,000, Chalmers said. That’s money the county and area cities, school districts and other taxing districts won’t be getting.

The county has 84 taxing districts, Chalmers said. Money they expect to receive after Feb. 15 will be reduced as a result. That’s the date property taxpayers’ second trimester payment is due, and which triggers additional payments to taxing districts.

Umatilla County, for example, will have about $80,000 withheld, according to Chalmers. The Hermiston School District will have about $71,000 withheld, the Pendleton School District about $44,000, Pendleton about $33,000 and Hermiston about $23,000, he said.

The aggravating part for Chalmers was finding out about it at the last minute.

The Oregon Department of Revenue, not the counties, appraise and assess Qwest and other “centrally assessed revenue accounts,” according to Chalmers. Qwest’s appeal, therefore, went directly to the state.

“Unfortunately we weren’t notified until January,” Chalmers said.

Ordinarily, when an appeal is pending, the county calculates the amount it might have to refund and sets it aside so if the appellant prevails there are no surprises, he said. That didn’t happen in this case because not only did the state fail to notify the counties of the appeal, but it didn’t tell the counties anything until the second week of January, when the state announced a stipulated settlement with Qwest.