Report shows Lone Star College owes over $2 million in back taxes

HOUSTON – The Lone Star College system has announced that after an internal review of operations at LSC-University Park, the school has not paid taxes on commercial rental properties, as required by law.

The University Park campus, in northwest Houston, was purchased in 2008 and includes a number of System Office departments and employees, a University Center, and a commercial lease component.

The portion used for educational purposes is tax exempt. The commercial lease component is taxable and part of a strategic effort to diversify revenue sources and manage the college efficiently. Lone Star College purchased over 1 million square feet and will lease out available space until the campus at that site reaches its maximum enrollment potential, estimated to be 18,000-20,000 students over a 10-year period.

"This is good news for taxpayers,” said Tax Assessor-Collector Mike Sullivan. “Chancellor Head is handling this professionally and expeditiously. I appreciate Lone Star College and its service to our community. Lawyers assisting the school have determined that total taxes due are $2,024,000. We are working with the College to triple-check the numbers and finalize a repayment plan, getting that money into the hands of taxpayers.”

Lone Star College is reviewing its internal processes and remains committed to its students, taxpayers and community.