Wal-Mart reappraisal could cost area $100K

WATKINS GLEN--Wal-Mart's request for a reduction in their assessment from $11.7 million to $7.5 million has officials worried it could affect the area's tax income. If the reassessment were to go through, officials estimate it could cost the county approximately $25,000, with the impact going in excess of $100,000 for all municipalities collectively.
"The recent actions by the county and other affected municipal governments are a testament to both the spirit of inter-municipal cooperation and our collective resolve to vigorously defend this assessment," Schuyler County Administrator Tim O'Hearn said. "The real property tax system is predicated on uniformity and equality, ensuring simply that any taxpayer pay their 'fair share.' This latest attempt to reduce their assessment, if successful would unfairly shift the property tax burden to other taxpayers. In essence our argument is that this isn't right."
O'Hearn said under law, the burden is on Wal-Mart to demonstrate the assessment is wrong by "clear and convincing evidence." He said to date, the county "has not been provided any competent evidence that the assessment should be reduced." Tom Bloodgood, director of the Schuyler County Real Property Tax Office, said Wal-Mart is basing their request on a preliminary appraisal they have conducted, adding the county has not yet seen this appraisal.
"Until we receive proper evidence, we cannot commit to settlement discussions and will assume the case is headed to trial," O'Hearn said. The administrator said pretrial proceedings in assessment cases typically take at least four to six months before being scheduled for trial.
The last time Wal-Mart had their property value adjusted was in 2013, when it was decreased to $11.4 million from $12.4 million. This came after Wal-Mart had initially requested a decrease to $5.7 million.
Wal-Mart's current annual tax bill is $342,000. Bloodgood said they came to that assessment based on an income capitalization approach and by making a slight adjustment to the assessment that was agreed upon the last time. This includes estimating potential gross income, subtracting vacancy and collection loss figures, subtracting estimated building expenses and dividing this number by the capitalization rate. Bloodgood said Wal-Mart's value is around $1.4 million in the land, with the rest of its value being in the building.
"I don't think it has anything to do with the value," Bloodgood said. "It has to do with their bottom line."
Wal-Mart did not respond with a comment by press time.