The Department of Revenue says it has reached a settlement with PPL Montana on its contested taxes, and says the company will pay 94 percent of the taxes assessed over the past eight years.

The settlement follows a Supreme Court decision that largely went in the department’s favor, and a recent offer from PPL to pay 85 percent of its disputed 2000-07 tax bill.

The company owed about $121 million over the eight-year period, and had paid $76 million of it. The other $45 million was placed in a protest account.

State Revenue Director Dan Bucks said state and local governments will get $38 million of the money in the protest account, and PPL will get $7 million back.

The money is owed to the state and to local governments and school districts in nine counties. Cascade, Sanders, Lewis and Clark, Rosebud, Yellowstone and Lake counties have the most property owned by PPL.

PPL fought in court and negotiations to pay 63 percent of its overall tax bill, before recently increasing the offer and saying it just wanted to end the case.

“The state prevailed in the fundamental constitutional issue before the court,” Bucks said. “I believe that both sides recognized the value of reaching an agreement now that the legal issues have been decided by the court.”

PPL said it believes the agreement is fair.

“PPL now considers this matter closed,” Brad Spencer, PPL Montana’s vice president and chief operating officer, said in a statement.

PPL Montana operates all or part of 15 power plants, including 11 hydroelectric dams.

The state also is dealing with tax protests from a half-dozen other large utility and energy companies that own property in multiple counties, including NorthWestern Energy, Qwest, Verizon and ConocoPhillips.

“I hope other major corporations that have protested their taxes will read this decision carefully, recognize the department’s determination to defend the laws of Montana, and come to the table to do what is right for Montana’s school children,” Bucks said.