INDIANAPOLIS | Lake County suffered a partial defeat this week in a lingering dispute over the multimillion-dollar property tax bill U.S. Steel received five years ago.

Indiana Tax Court Judge Thomas Fisher upheld Wednesday an earlier ruling that the county cannot use details from an unrelated U.S. Steel tax settlement to buttress its current case.

At issue is the $269 million tax value the Calumet Township assessor assigned to the buildings and land U.S. Steel owns at its Gary Works mill. U.S. Steel appealed the 2001 assessment, arguing the real estate was worth $90 million, and the Indiana Board of Tax Review sided with the company in February.

Lake County officials had hoped to support their case with details from the historic $53 million property tax settlement U.S. Steel reached with the county in 2004.

But the Board of Tax Review ruled the settlement, which covered taxes on the company's machinery and equipment, had nothing to do with the real estate tax dispute. Judge Fisher agreed.

"Obviously we're disappointed, but from our standpoint this wasn't a (sure thing). It was a longshot," said Lake County Attorney John Dull.

He said it's unlikely county officials would appeal the decision to the Indiana Supreme Court because Fisher's ruling decided only one element of the dispute. The county and U.S Steel still must argue the rest of the case before the Indiana Tax Court.

"The case is very much alive, and the issues are being hotly contested," said David Suess, an attorney for U.S. Steel.

U.S. Steel paid the 2001 tax bill and could receive a partial refund or future tax credits if the company wins out. The attorneys for each side did not know the size of the potential refund, and Lake County Assessor Paul Karras could not be reached for comment Thursday.

The 2001 tax bill in dispute was the last determined locally. State lawmakers stripped local officials of their steel mill assessment duties a year later, though that hasn't stopped big industry from disputing subsequent state assessments, including those delivered this year.