Legal Settlement Reduces Local Tax Burden by Approximately $360,000 Over 3 Years
November 07, 2016
The effect of the settlement does not change the amount of funding for schools, but shifts more of the cost to the State.
The core of the underlying dispute was the valuation the State Assessor placed on the private interest in the AIDEA-owned shipyard which can be included in the total tax base for calculation of required local payments for schools. The State valued that interest in 2015 at about $74 million. The Borough argued that the value was only $22.7 million. The settlement agreement results in a 2015 value of $30.4 million.
‘‘This is a very positive resolution of the case’’ said Borough Manager Dan Bockhorst. ‘‘While we believe the actual value is lower still, the standard of review which applies to an appeal makes this settlement in the best interests of the community. It produces certainty and reduces the burden on local taxpayers by approximately $360,000 over 3 years.’’
Editing by Mary Kauffman, SitNews
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