Council approves Dow tax appeal settlement

10/24/2006
 By Kathie Marchlewski, Midland Daily News

The Dow Chemical Co.'s property tax bill is likely to be cut by $3.1 million from now on, according to a proposed settlement in its 10-year tax appeal versus the City of Midland.

The Midland City Council on Monday approved the proposal, offering Dow a refund of $35 million and a 20 percent annual reduction in taxes.

By Nov. 10, the city plans to submit the proposal to the Michigan Tax Tribunal, which must authorize the settlement. By December, refund checks are likely to be cut, said city Fiscal Services Director Dave Keenan. Portions of the refund will come from the city, Midland County and other entities that collect tax from Dow, including Midland County Educational Services Agency, Midland Public Schools, the state and Delta College.

Completion of the deal will put an end to all pending tax arguments between the city and Dow.

"The word that is so important is 'all,'" said City of Midland attorney Jim Branson.

Dow and the city had two long-term and outstanding tax disputes, one over the Michigan Operations plant and one over the corporate headquarters. The plant case was due to be heard in court Oct. 18, and the corporate center case had been decided by the Tribunal but was appealed to the Court of Appeals, where it had been on the docket for more than a year.

Keenan said the city has about $10.5 million on reserve for its portion of the expected refund, leaving about $1.5 million in that fund. He has been in contact with other taxing jurisdictions, which also have been reserving money in case of a refund.

"The comments I've received (indicate) that they're in pretty good shape," Keenan said.

City Council members, who approved the settlement unanimously, said they are glad to put an end to the issue. "It's a good thing," said Jim Myers. "It's definitely good to have it in your rearview mirror."

New Michigan Operations Site Manager David Dupre said the resolution will help the future of Dow's Midland plant. "This is another step to make Michigan Operations competitive and keep it competitive."

©Midland Daily News 2006
 

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