CLEARFIELD – Clearfield County and the Clearfield Area School District will oppose the pending tax appeals that have been filed by the Dimeling Senior Residences and Pennsylvania Grain Processing (PGP). Clearfield Borough Council also approved opposing both pending tax appeals at its meeting last week.
The Dimeling Senior Residences and PGP are pursuing a reduction in their assessed values. Both tax appeals will be going before the Court of Common Pleas within Clearfield County, according to Business Administrator Sam Maney of the Clearfield Area School District.
Historically, Maney said the Dimeling Senior Residences started out assessed at $739,000, which was eventually reduced to $636,000. He said officials with the Dimeling Senior Residences now want that reduced to $0. Maney said last year the district collected $14,757 in local real estate taxes from the Dimeling Senior Residences.
County Solicitor Kim Kesner said the chief assessor wants additional assistance in defending the pending tax appeal and suggests having Allen Baumholtz be engaged as an expert witness. Kesner said Baumholtz had been highly recommended by several other sources, including other chief assessors in Pennsylvania that have faced appeals on similar facilities.
Kesner said the pending tax appeal for the Dimeling Senior Residences is distinguished though in that it’s subsidized housing and there are a number of issues pertaining to that. For that reason, he said the owners of the Dimeling Senior Residences are alleging that its assessed value for tax purposes is $0.
Kesner said Baumholtz has estimated that his costs will be $3,000 to $5,500. And, if he testifies it would be $800 per trial day. Kesner said these costs would be shared by Clearfield County, Clearfield schools and Clearfield Borough on a pro rata basis, which is determined by the millage rate.
“There’s only one way to keep our budget afloat and that is through tax dollars,” said Commissioner Chairperson Joan Robinson-McMillen. “We don’t expect anyone to be overtaxed, but we have certainly been fair. And with the Dimeling [alleging] $0, that’s certainly not reasonable.”
Commissioner John A. Sobel said it was “ridiculous” that the owners of the Dimeling Senior Residences wanted the base for the taxpayers to be $0. He wanted to make sure the effectiveness of their position ended up being “zero,” saying he was more than happy to support opposing the pending tax appeal.
The commissioners approved engaging Baumholtz and to share in the costs of the same.
Robinson-McMillen said the commissioners support the Dimeling Senior Residences, and they’re fortunate it’s being managed by a local company. In the same token, she said they want a reasonable tax rate to be set.
Maney said PGP is currently assessed at $25.5 million; however, PGP wants its assessed value to be reduced to $4 million. He said that PGP believes its taxes are excessive and the value used to calculate its taxes should reflect the amount it purchased the ethanol plant for in bankruptcy court. Maney said last year the district collected in excess of $467,000 in local real estate taxes from PGP.
Kesner said the chief assessor disputes PGP’s pending tax appeal, intends to oppose it vigorously and has contacted James White, who previously appraised the ethanol plant. Kesner said White is available to update his appraisal and to provide expert testimony at $200 per hour. He said these costs would be shared on a pro rata basis among the three taxing districts.
The commissioners approved engaging White to update his appraisal and to provide expert testimony and to share in the costs of the same.
“We did our due diligence and had a fair assessment,” said Robinson-McMillen. “They certainly should have known the taxes when they bought the facility. We stand firm that we were more than fair when we set the value the first time.”
In May of 2012, PGP purchased the former Bionol Clearfield ethanol plant for $9.35 million for its grain processing facility. It began production in mid-July of 2012. PGP is an affiliate of Zeeland Farm Services Inc. of western Michigan, according to a previous GantDaily.com report.
Bionol Clearfield initiated construction of the ethanol plant in April of 2008. It started production at the $275 million ethanol plant early in 2010. However, in July of the same year, it announced that Getty Oil/LukOil would default its five-year contract to purchase the vast majority of the plant’s ethanol.
Bionol Clearfield LLC went into “hot idle” in June of 2011, before it, along with affiliates Bioenergy Holdings and Bionol Holdings, announced filing for Chapter 7 liquidation bankruptcy in July of 2011 in the U.S. Bankruptcy Court in Delaware.