North Cowichan is taking a wait-and-see — and a mum’s the word — approach to what happens next after Catalyst Paper followed up on its promise to pay only a portion of its annual tax bill.

Mark Frame, North Cowichan’s director of finance, confirmed Crofton mill paid less than what the municipality said it owes.

“They paid $1.5 million of their ($6.5-million 2009) tax bill last week,” he said.

“As well, Catalyst paid another $946,900 to pay school taxes, the Cowichan Valley Regional District and all the others.”

Frame is about the only person at North Cowichan who will talk openly about Catalyst’s tax battle these days because the matter is now before the courts.

“I’m not really able to talk about it,” said Dave Haywood, a North Cowichan councillor who has many times publicly given his views about the tax battle.

“It’s standard practice for the municipal council, whenever we’re involved in a legal matter, not to make comment because of the sensitivity of the situation and because (the comments) could be used against the municipality in court,” he said.

Catalyst has long argued it pays more than its fair share of taxes — about 44 per cent of all taxes last year — and it needs that extra cash to remain competitive in a gloomy global market.

Now Catalyst is taking its case to court.

Claiming unfair taxes helped put them deep in a financial hole, Catalyst petitioned to the Supreme Court of British Columbia last month for a judicial review of property tax rates in North Cowichan, Port Alberni and Campbell River, all places where the pulp-and-paper company has operations.

So, until a court decision says otherwise, Catalyst said it would pay only what it deems is fair, based on its own consumptive figures.

Frame said Catalyst usually hand-delivers its taxes, and did so again last week.

“Eight or nine years ago they came with a (four-foot by eight-foot) cheque and they used to send someone down to specially hand it to the mayor,” he said.

“Over the last years they’ve hand-delivered (the cheques) but didn’t make a fuss about it.”

As it now stands, Catalyst has been hit by a 10 per cent penalty that stays current until Dec. 31.

If the taxes remain unpaid by January, Catalyst will officially be in arrears, and by May the municipality would add 2010 taxes to the overall bill.

If Catalyst fails to pony up by September of the third year, the property could go to a tax sale.