United to Pay $21.6 Million in Back Taxes

City officials said Thursday United Airlines has agreed to pay $21.6 million in back taxes as the airline works to emerge from bankruptcy protection.

The settlement with United's parent, UAL Corp., covers city tax claims from July 2000 to June 2004 and includes applicable penalties and interest, Mayor John Hickenlooper said.

The money will be divided among the city, Denver Public Schools, a flood control district and the state, which had loaned the school district money to help compensate for taxes it lost when United filed for bankruptcy protection.

The payments cover property, sales, use and occupational privilege taxes.

"The fact that we were able to recover so much of these back taxes despite United's bankruptcy proceedings is a credit to United's commitment to our community and a credit to the City's audit and negotiating team," said Hickenlooper.

UAL, based in Elk Grove Village, Ill., filed for Chapter 11 bankruptcy in December 2002. Company officials expect to bring the airline out of Chapter 11 in February.

United accounts for about 59 percent of the passenger traffic at Denver International Airport.

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