September 20, 2014
BILLINGS, Mont. (AP) - An appeals court has resurrected a bid by the state of Montana to force ultra-luxury resort founder Tim Blixseth into bankruptcy and make him cough up $57 million in alleged back taxes.
A three-judge panel of the 9th U.S. Circuit Court of Appeals overruled a lower court ruling Monday and said Nevada is the proper venue. Blixseth is believed to have most of his assets in a Nevada-based trust.
The ruling comes on the heels of a Dec. 5 order that Blixseth pay $41 million to creditors from the Yellowstone Club, the private ski resort he founded near Big Sky.
Blixseth diverted most of a $375 million loan to the club for his personal use before it went bankrupt in 2008.
The state says that money counts as taxable income.
Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.