INCLINE VILLAGE, Nev. — Washoe County School District is preparing to file an appeal after a judge dismissed their case regarding overpaid taxes by homeowners in Incline Village in the early 2000’s.

After a recent estimated $56 million was approved by the Washoe County commissioners to be refunded to homeowners with interest after overpaying for three tax seasons, the school district filed a lawsuit in an attempt to stop Washoe County from deducting funds from the district.

It’s estimated that with interest, the district would have almost $20 million withheld from them, which the district sees as a clear financial burden on the schools.

Judge Scott Freeman disagreed. On Aug 27, he ruled that Washoe County does in fact have the ability to withhold the money.

The judge wrote in his decision, “… the Court finds that, as it has been previously determined, the School District utilized approximately $10 million dollars from the 2003-2004, 2004-2005, and 2005-2006 tax years, which it should not have had available.”

The district’s lawyers will push to appeal the decision.

Media and Communications Manager of the Washoe County Manager’s Office Bethany Drysdale said that the money was received and used by the district, along with the other entities that are going to receive deductions, including Washoe County, North Lake Tahoe Fire Protection, the State of Nevada, and Incline Village General Improvement District.

“The decision has been rendered and we’re going to follow that decision,” said Drysdale and added that they haven’t received pushback from any of the other entities.

“The Washoe County School District is disappointed to learn of the recent decision regarding the county’s attempt to take nearly $20 million from the WSCD to pay for the settlement between Washoe County and Incline Village,” said officials from WSCD in a statement earlier this month. “WCSD believes the case cited by the court is flawed, and the District’s legal counsel will advocate to the Board of Trustees that this decision should be appealed.”

The district finished their statement by saying, “WCSD does not dispute that the residents of Incline Village should receive a refund for their overpayment. However, WSCD also believes the county is responsible for its negligent acts and the county assessor’s error 15 years ago.”