Perkins school district contests KBI's worth

PERKINS TWP. Perkins Schools is challenging the valuation of the KBI property, saying it's worth twi
susanmcmillan
May 24, 2010

 

PERKINS TWP.

Perkins Schools is challenging the valuation of the KBI property, saying it's worth twice the amount the Erie County Auditor's office uses to levy taxes.

The valuation on record, established Jan. 1, 2008, is just less than $12 million. Perkins Schools contends the fair market value is $25.5 million -- the amount KBI paid for the property in August.

The company pays $129,910 in property taxes to Perkins Schools. It would owe the district another $153,541 if the valuation is raised.

"That's a big chunk of change," district treasurer Lisa Crescimano said.

Like other districts, Perkins Schools reviews sales within the district and checks the auditor's valuations against the sale prices.

If the additional tax owed to the district would be at least $1,400, it challenges the valuation.

"If that's what it was worth to them, and that's what they paid for it, then that's what it should be valued at," Crescimano said.

She said the challenges are usually successful, though sometimes the district and the property owner must settle on a new valuation.

KBI has 30 days after receiving its notice of the complaint to file a counter-complaint. Auditor Tom Paul said that deadline is May 11.

The matter would then go before the Board of Revision, which consists of Paul, county treasurer Jo Dee Fantozz and county commissioner Bill Monaghan.

Paul said the board is interested only in the value of the land and the building, not any factory equipment or other contents included in the purchase agreement between KBI and the previous owner, 2509 Hayes LLC.

"We suspect (that) in that agreement, there was an amount set for the personal property and equipment," he said.

In that case, the value of the land and building would be less than the $25.5 million purchase price, and the company's tax bill would not be as high.