Jamestown, NY. Wal-Mart Sues for Lower Tax Assessment

Wal-Mart Sues For Lower Tax Assessment [Jamestown Post-Journal (NY)]

Wal-Mart is suing the town of Busti over its property assessment, in what Randy Holcomb, Busti assessor, says is a common occurrence for the retailer.

The store is seeking an assessment of $6 million, citing Holcomb’s $11.5 million assessment as incorrect.

‘‘Wal-Mart typically does this with their stores, and it’s not uncommon to see this with many of the Wal-Mart stores across the state,’’ Holcomb said. ‘‘They did this to the town of Busti about 10 years ago, but an agreement was reached.’’

According to Holcomb, the entire town of Busti was reassessed, and Wal-Mart was earmarked at $11.5 million. The property assessment includes the store itself, parking lot and land owned by the company — though it doesn’t include the businesses sharing the plaza, such as Applebee’s or the Dollar General plaza.

‘‘Typically in this situation we will have to hire a commercial appraiser to do an appraisement for the town of Busti, then that’s what we’ll take to the judge,’’ Holcomb said. ‘‘I feel my assessment is a valid market value appraisal.’’

However, while the company may be assessed at $11.5 million, it has a $3.5 million exemption for new construction, meaning the company is only paying for a taxable assessment of $7.5 million. Holcomb said the town granted the company the $3.5 million for construction because it is entitled to it, yet it is something Wal-Mart does not like to talk about.

‘‘Any taxpayer, residential or commercial, is entitled to an appeal process,’’ said Sharon Weber, Wal-Mart spokesperson. ‘‘We are simply following the avenues available to us to resolve this difference.’’

Since the lawsuit is so large, Chautauqua County will be stepping in to help Busti.

‘‘There is a legislative policy that was passed in 1998 by resolution that states if an assessment appeal is over $1 million, the county may step in and help the municipality,’’ said Darin Schulz, Chautauqua County finance director. ‘‘As long as it’s in the best interest of the county, the county will actively participate with the municipalities involved with the lawsuit if approved through inter-municipal agreements via resolution – including Southwestern School district, the town of Busti and the village of Lakewood.’’

Historically, on similar large appeals, all entities have agreed, Schulz said. Most recently, when Peek ’n Peak wanted to appeal its assessment, French Creek and Clymer Central School district officials opted to participate.

‘‘We want to work with anybody we can on this to make sure it benefits everybody and gets it where it needs to be,’’ said Kathy Sullivan, Busti town supervisor. ‘‘We’re hoping everyone will opt to work together. The county is setting up a meeting between all the groups involved, and we’re hoping for a positive response.’’

According to Schulz, all taxing jurisdictions must agree, and must be limited to promotional taxation. If all were met, it would equal 25 percent. The lawsuit is still in its earliest stages, so little progress has yet to be made.

‘‘Right now I have drafted a letter to all three municipalities’ attorneys informing them of the legislative policy and am waiting for a response from all three and what action they will take,’’ Schulz said. ‘‘There is a significant amount of revenue to be lost without active defense of this.’’

Posted by Alex Goldschmidt on Thursday, October 11, 2007

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