3M accepts county's offer in property valuation appeal

By Rusty Murry

Nevada Daily Mail

A county-proposed counter-offer in a contested property valuation of the 3M facility in Nevada, has been accepted by the city's largest employer.

According to Vernon County Assessor Cherie K. Roberts, 3M has agreed for the appraised valuation of the property on the east side of Nevada to be set at $9 million for the 2011-'12 tax years. Roberts learned of the acceptance of the offer in a letter from 3M's real estate counselor, Anna C. Zanko, dated Aug. 10.

In March, 3M appealed the original 2011 property valuation of $11,068,020. Both 3M and the assessor's office had an independent appraisal performed, The county's revised appraisal was $11 million in value and 3M's was $3.2 million. The first appeal was to the Board of Equalization, which opted not to change the assessed value. A hearing was scheduled with the Missouri State Tax Commission; and 3M then proposed a settlement that was unacceptable to the county, so the county made the counteroffer accepted by 3M.

The letter accepting the counteroffer states that 3M "carefully reviewed your proposal and the supporting documents submitted by the City, School District, Health Department, Township and County Commission." It also states that 3M recognizes the fact that a "considerable reduction in its property valuation may have a significant impact on various municipal services."

The document goes on to say that 3M wants "to enjoy a positive and strong relationship with the City of Nevada and greater Vernon County," despite the disparity in the valuation figures.

The letter states that the company still believes that the 3.2 million value placed on their property by appraiser Thomas H. Slack of the Appraisal and Consulting Services Co. of Kansas City, Mo. is "accurate," but they are accepting the compromise in exchange for dismissal of the appeal hearing.

W.B. Tichenor, the senior hearing officer of the Missouri State Tax Commission ordered the hearing canceled Aug. 13,

3M says it will expect the assessor's office to review the sales comparables used in their appraisal when conducting the "valuation analysis" for the upcoming 2013 appraisal.

Roberts said she is pleased with the settlement offer and the fact that it didn't have to go all the way to the hearing. Even though the various taxing entities in the county will not receive as much money as they would have under the original valuation, it will not be nearly as large a loss in revenue as would have been if 3M's appraisal of $3.2 million had been used.

The original valuation would have put total of $220,129.79 into the various taxing entities' budgets; and the $3.2 million figure would have added a total of only $56,285.17 to the various entities' budgets.

As it is, there will be a total of $179,133.12 paid for the $9 million valuation. The state will receive $864; Vernon County, $4,777.44; Vernon County Health Department, $2,880; Vernon County Ambulance District, $4,320; Nevada R-5 School District, $108,048.96; Center Township, $2,880; Center Road District, $9,694.08; and the city of Nevada, $25,280.64. There will also be $20,448 paid into a surtax account that is distributed to the above entities in varying amounts.

Vernon County Treasurer Collector Phil Couch said none of the funds have been disbursed yet; but he will calculate the figures and return any money (held in a special account while the appeals process was conducted) due to 3M and distribute the funds to the county agencies as soon as he is authorized to do so -- possibly as early as next week.