U.S. Markets closed

$57M Blixseth tax case to resume in July

BILLINGS, Mont. (AP) -- Montana tax authorities say a federal court hearing over a $57 million tax dispute with luxury real estate developer Tim Blixseth will resume in July.

Attorneys for Blixseth and the Montana Department of Revenue faced off in a Nevada courtroom last week. The state is trying to force the founder of the ultra-exclusive Yellowstone Club into involuntary bankruptcy.

After two days of hearings with no resolution, state officials say U.S. Bankruptcy Judge Bruce Markell set closing arguments for July 5.

The state claims that Blixseth, a resident of Washington state, owes the taxes on a 2005 loan he diverted from the Yellowstone Club. The club later went bankrupt and is now under new ownership.

Blixseth is seeking to dismiss the case. He maintains he paid what he owed.