By JIMMY LAWTON

CANTON -- Nicholville Telephone Company and SLIC Network Solutions have reached an agreement with St. Lawrence County to make good on more than $1.25 million owed in back taxes.

About half of that sum has already been paid to the county and under the new agreement the remainder will be paid back over six years.

St. Lawrence County legislators agreed to a deal offered by Nicholville Telephone Company at a Finance Committee meeting Monday. It outlines how the initial payment will be allocated and outlines the payment plan.

According to the resolution the companies owed a total of $1.25 million in combined tax delinquency. However, on Aug. 10 a payment of nearly $690,000 was made to the county to save properties from foreclosure and to put a down payment of sorts toward other back taxes it owed.

Now the company has also agreed to pay the remaining $731,105 it owes over the next five years.

For the first six months the companies will make payments of $7,500 for a total of $45,000. In the following six-month period the companies will pay $10,000 per moth for a total of $60,000.

In months 13 through 18 payments will increase to $12,500 for a total of 75,000.

In months 19 through 59 the companies will make $15,000 payments for a total of $525,000.

An additional payment of $26,105 will be made in the final month.

In a recent interview Slic Network Solutions President Phil Wagschall said the company fell behind on taxes during its massive project to install 800 miles of broadband cable in just a few years. Slic spent $33 million over the course of that time.

While it may be hard to understand how a company could fall so behind on taxes, Wagschal pointed out that while Slic was building out fiber lines and facilities that have tax liability, no new income was being generated from the project.

“Doing rural broadband is challenging. You are taxed on facilities before they start generating revenue,” he said.

When the county received its first payment on Aug. 10, St. Lawrence County Treasurer Renee Cole said it was a major relief for the county.

Although approved by the finance committee, the deal will need approval from the Board of Legislators, which is made up of the same members.