Audacy Reaches $1.4 Million Settlement Over Local Tax Payments

Lower Merion was seeking $11.7 million for what it alleged were unpaid taxes with interest from two of the audio content providers subsidiaries.

AudacyAudacy has reached a $1.4 million settlement with Lower Merion Township PA over alleged unpaid taxes from when it its Bala Cynwyd community was home to Entercom’s corporate headquarters.

The township was seeking $4.03 million in local taxes for 2012 to 2016 from Entercom Radio Inc. and $7.7 million in unpaid business taxes from subsidiary Entercom Incorporated as an unsecured creditor in Audacy’s Chapter 11 bankruptcy proceedings. The totals also included $3.1 million in interest. The township’s filed a county suit against the company in 2019 that had been held up by the pandemic and appeals. Audacy argued that the subsidiaries did  not conduct business out of the headquarters despite all executives being based in the community and it being the address for payments making them subject to local taxes.

As part of the settlement, which was disclosed on Friday, neither side had to admit or concede liability and all legal actions against each other regarding the taxes will be dismissed.

This story first appeared on radioinsight.com