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United Local, energy company settle property tax appeal

HANOVERTON–The United school board this week approved a settlement in its tax appeal.

The board Wednesday night approved a settlement of providing a one-time total payment of $130,500 with Utica East Ohio Midstream LLC regarding taxable values of property located at 11697 state Route 644, the site of the natural gas collection and processing plant in Kensington.

Terms of the settlement also include the dismissal with prejudice of the board’s appeal, currently on the Ohio Board of Tax Appeals docket. The company must pay the settlement amount within 30 days of the appeal’s dismissal.

School officials in 2016 challenged the real estate valuation placed on the plant by the county auditor’s officer, filing an appeal with the Columbiana County Board of Revision.

The 150 acres and the buildings were taxed based on a $3.3 million value assigned by the auditor’s office using the formula set forth by state law. The school board’s attorney, however, noted the assessed value of the 150 acres alone is $2.3 million, even through the company paid a combined $2.7 million for the property. The board asked that the true value of the property be increased from $12,665,500 to $40 million.

The board appealed the property valuation of the Kensington plant because the district was only receiving $1,100 annually in real estate taxes, the board said in December 2015.

According to the settlement, provided by the district, both the board and company agreed to settle to avoid further legal costs and detriment to the student body. Terms of the settlement also include stipulate the withdrawal of the company’s original tax complaint with the board of revisions and an agreement that the two entities will not file complaints contesting the valuation or classification of the property unless there is a change in the auditor’s valuation of $12,665,500 through tax year 202, or more than $16.6 million or less than $10.6 million in tax years 2022 through 2024.

School Treasurer Melissa Baker said she cannot comment on the settlement on advice from legal counsel, but Superintendent Lance Hostetler noted his pleasure in finally settling the issue and disappointment that the appeal had to happen.

“It’s a shame we had to appeal,” he said. “The board felt if the situation had been handled the right way in the beginning, we would have been treated fairly to begin with and not had to incur legal fees.”

Hostetler said the total amount of legal fees the district spent on the appeal is still undetermined due to some outstanding costs.

khowell@salemnews.net

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