NEGOTIATE TAX APPEAL SETTLEMENT
Eight years of tax appeals may come to a successful end with
the City of
Dow Corning Corporation reaching a proposed settlement of the company’s tax appeal of assessments levied since 1996.
The agreement, which will be submitted for review by the
Michigan Tax Tribunal today, provides an 11 percent overall aggregate reduction
in taxable value for Dow Corning’s property located in the City of
All taxing jurisdictions within the City of
$7 million to Dow Corning Corporation.
The refunds from each taxing entity are estimated to be:
State
of
City
of
Midland County $ 947,231
Midland Public Schools $ 187,311
“The City Council and I are very pleased with this
negotiated settlement,” said City Manager Karl Tomion. “Not only are we happy that this brings
closure to this tax appeal, but also that the negotiation process was a
positive one that has served to strengthen the relationship between Dow Corning
Corporation and the City of
Dow Corning Americas Area
President Jere Marciniak agrees. “This settlement is in the best interests of
Dow Corning and the City of
The Dow Corning tax appeal case involved several very complex legal and valuation issues. These were further complicated by the magnitude of Dow Corning’s plant that includes more than 180 different buildings and thousands of pieces of production equipment involved in more than 100 different processes.
The Michigan Tax Tribunal appointed a three-judge panel to administer the formal legal process. Both parties submitted and exchanged extensive and detailed appraisals. Subsequent to initial testimony both Dow Corning and the city agreed to the proposed appraisal adjustments.
The settlement agreement will be submitted to the Michigan Tax Tribunal on October 4. The Tribunal will then determine when the settlement will be approved.
In the interim, the city will meet with the other affected taxing jurisdictions to explain the specific impact of the settlement.