Duke Energy property assessment reduced
The Fayette County Assessment Appeals Board has decreased the initial assessed value for Duke Energy Fayette II by nearly 50 percent, from $35 million to $18.2 million.
However, the amount is twice the figure offered by the company’s appraiser.
According to Bill Lukach, chief county assessor, for 2016 the new land assessed value for the German Township-based facility will be $10 million with the building improvement assessed value at $8.12 million.
The board also determined the values will be used for 2011 through 2015.
The figures resulted from a Dec. 11 hearing requested by the Albert Gallatin School District. The district was asking the board to retain the $35 million rate for the four year period.
Attorney Frank Hoegen, legal counsel for Duke Energy, said Monday that he had yet to be notified of the new rates and declined to comment.
“I haven’t received any notification,” he said. “I would like to review it first and discuss it with my client before I say anything.”
When advised of the rates, Hoegen said that they were not the figures discussed during an executive session held during the meeting.
He declined to divulge whether the amounts were higher or lower than previously discussed.
In 2002, the Texas-based company purchased 300 acres near the now-closed Hatfield’s Ferry Power Station in Masontown.
At the time, owners and local officials attributed the company’s decision to locate in Fayette County to a joint agreement of the taxing bodies to designate 60-acres of the property with the Keystone Opportunity Zone (KOZ).
For the 10 year period the company paid real estate taxes to the county, school district and municipality on the initial $1.8 million assessed value. During the timeframe several improvements were made to the property including the construction of the energy producing facility and other structures.
When the KOZ expired, the county reassessed the property at $35 million.
The assessment figure was appealed to the local court with the company claiming “spot assessment” because the county had failed to apprise the company of the new figures during the interim.
The Court of Common Pleas upheld the ruling. Duke appealed the matter to the Commonwealth Court where the county action was deemed to be “spot assessment.”
In April, the court ruled that the initial $1.8 million assessed value be reinstated. From 2011 through 2015, the company had paid taxes on the $35 million assessed value.
At the $1.8 million assessed value, the school district received $23,415 in property taxes. At the $35 million assessed value, it recouped $457,665 at the district’s current millage rate of 13.0088 mills.
German Township and the county also garnered additional revenue at the $35 million assessment figure.
The township received $70,350 at the higher level, compared to the lesser value amount that brought in $3,600 to the municipal coffers.
At the $1.8 million, the county took in about $8,000, while at the $35 million it received$158,800 in revenue.
Lukach, meanwhile, said the board tried to strike a middle ground in recalculating the new figure. However, any of the parties can appeal the most recent figure.
If the $18.2 million value remains intact, the school district revenue will about $226,500; the county, $82,000, and the township, $36,350.
Because Duke was paying the higher rate during the four year period, the taxing bodies could be liable for repaying the difference between the two amounts, if the parties agree to the new figure.
“In cases like this there is usually a credit given for future years instead of writing a check,” said Lukach, adding that the court or respective taxing bodies would have the opportunity to reach an agreement.
Attorney Anthony Giglio, legal counsel for the school district, did not return a telephone message Monday seeking comment on the new assessed value.
Duke and the taxing bodies will have until Jan. 21 to accept or reject the new assessed valuation.