Agreement cuts 3M tax payment nearly in half; funds released

By Steve Moyer

Nevada Daily Mail

Vernon County and other local officials signed off on an agreement with 3M which would free money now in escrow during a meeting in the county commission office Wednesday. The agreement covers the 2004, 2005 and 2006 tax years, allowing local organizations to make budget projections.

The agreement leaves in place the $10.1 million assessment for real estate but lowers the personal property assessment from $17.5 million to just under $9.5 million. The agreement will release the approximately $1 million dollars that is currently in escrow, about half of it will return to 3M's coffers and the other to the various taxing authorities in Vernon County.

"This will drop the personal property down to where they requested, except for adding all new equipment installed and buildings erected," Cherie Roberts, Vernon County Assessor said. "What they wanted was to drop the '04 assessment taxing year altogether."

Nevada R-5 School Board President Chris Ellis and Superintendent Dr. Ted Davis were in attendance and were behind the agreement wholeheartedly. "This benefits the school very positively," Davis said. "It is good immediately on the present foundation formula because it makes up for any losses you have plus the new formula will really help us because this is the basis for our future funding."

Roberts pointed out that the agreement now would allow the taxing authorities to proceed with their budgets.

"If we had gone ahead to the tax board we would have lost anyway,'" Roberts said. "This way we can move forward and we won't have to worry about appeals for the next two years."

County Prosecutor Lynn Ewing III said that the agreement had been sent off to 3M.

"The settlement agreement has been sent off to the company's counsel," Ewing said. "I haven't heard back yet. The ball's in their court."

Nevada City Manager Craig Hubler said that a quick resolution was preferable. "If the deal isn't done by June 30 then what is acceptable now might not be acceptable then," Hubler said. "From the meetings we've already had it's obvious if we don't go with this it would only be worse."

Vernon County Clerk Tammi Beach said that nothing could be changed until the tax commission sent out an order. "I can't do anything until I get that order," Beach said.

Ewing said that the tax commission just had to rubber stamp the agreement. "It's just paperwork, they don't have to have a hearing or anything," Ewing said.