Below is a press release from Loudon County Property Assessor, Mike Campbell, giving the details of the impact the Tate & Lyle legal decision could have on Loudon County and the City Of Loudon. County commission will hear from Mr. Campbell at tonight's commission meeting.
TATE & LYLE SHUCKS LOUDON COUNTY
Tate and Lyle Ingredients is a corn processing company with one of four North American plants located in Loudon County, originally built by A. E. Staley Company. The corn refining industry produces hundreds of products and byproducts, such as high fructose corn syrup (HFCS), corn syrup, starches, animal feed, oil and alcohol.
Tate and Lyle Ingredients appealed the valuation of their tangible personal property located at their Loudon County corn wet milling plant. Tate & Lyle contended that the fair market value of their assets were worth $72,700,000 for 2011 and $84,200,000 for tax year 2012. Loudon County Assessor reports that after an independent audit conducted by Tax Management and Associates the Tate & Lyle self-reported assets should be valued at $188,455,161.00 for tax year 2011 and $172,558,214 for tax year 2012.
Tate and Lyle Ingredients failed to timely file for pollution control equipment in 2011, 2012 and 2013 and failed to timely file for non-standard valuation in 2011, 2012, 2013 and 2014. Tate and Lyle’s lack of action caused the Assessor to follow the required state law denying pollution control certification on the specific equipment. The judge allowed Tate and Lyle to argue non-standard valuation to offset a portion of their taxes. The judge’s decision will cause Loudon County to refund $143,415.00 as well as Loudon City will be required to refund $84,996.00 back to Tate and Lyle for years 2011 and 2012.
There is a 30 day window to appeal the decision set by the judge to the Assessment Appeals Commission. If there are no appeals filed, the decision can cause a total loss of revenue for Loudon County of $1,419,418.00 and Loudon City of $892,277.00 for tax years 2011 through 2016.
Nearly half of the Loudon County tax rate is for school funding; in addition to 17% for educational debt service. There is a potential loss in funding for Loudon County and Lenoir City schools of $710,000.00. As well as a potential loss to the Educational Debt Service Fund of $244,372.00. The educational debt service pays for projects such as the Greenback School, Fort Loudoun Middle School and Philadelphia Cafeteria Projects.
Monday, August 1, 2016 Mike Campbell, Loudon County Assessor will be presenting to The Loudon County Commission regarding the current status of the appeal decision.