Scott County has Board of Equalization hearing with Ameren

BENTON, Mo. -- Scott County will follow its assessor's recommendation and make no changes to the assessed value of Ameren's gas distribution system.

The decision was approved by the Scott County Commission following the Board of Equalization hearing with Ameren during the Commission's regular meeting. Board of Equalizations are convened annually to rule on appeals of property valuations set by the county assessor.

Tom Carron, tax specialist for Ameren, said he wanted to provide an update with any new information Ameren might have on its end.

"We have not received Scott County's 2017 property tax assessment for the gas distribution system, but assuming that it's going to be assessed the same way it has in prior years, if the assessor's not using the original cost unappreciated for the real property, then we are wanting to appeal," Carron said.

Ameren filed in compliance with the State Tax Commission requirements and this year it has now received an appraisal from its appraiser who has determined the valuation for 2014-2015, Carron said.

"We filed according to what this appraisal produced and as of allocation by county -- and for Scott County, in particular, for the real property portion we're appealing it has a value of $2.143 million," Carron said. "Now assuming that original cost would appreciate for the real property portion, is more than than that, we will appeal."

Carron provided a summary of depreciation rates approved by the Missouri Public Service Commission and copies of the State Tax Commission annual reports for 2015 and 2016 and read the following paragraph: "The Commission is respectfully recommending that the General Assembly amend the statutes to clarify the original assessment authority of the State Tax Commission to include gas district companies. Providing that authority will show uniform and equitable treatment throughout the state of property owned by gas distribution companies."

He provided updates on prior years.

"The 2013 appeal is currently at the Missouri Appellate Court. Ameren Missouri has made an offer to the counties' attorney for 92 cents on the dollar for 2013," Carron said.

A hearing for the 2014-2015 appeal is scheduled for August before a State Tax Commission hearing officer, Carron said, adding an exact date has yet to be determined.

Speaking on behalf of Scott County Assessor Teresa Houchin who was not present at the hearing, Roger Arnzen, a recently retired appraiser in Cape Girardeau who provides consultation services to the Assessor, said he didn't have any questions for Carron, but he wanted to bring the commissioners up to date with the issue.

"Basically we're at the same place we've been every year with Ameren since 2013," Arnzen said. "The 13 or 16 counties that are grouped together on these appeals won at the state level, the circuit level, and it's now at the appellate level for 2013, and their attorney is very confident they'll win that, too."

For 2014-2015 appeals, some question the two-year assessment cycle starting with the odd year, Arnzen said. He noted the counties have hired an expert from the East Coast to do the appraisal.

"It's a fight, a constant battle," Arnzen said. "The schools stand to lose hundreds of thousands of dollars in this. For example, Cape County is up to almost $700,000 it could lose if the decision goes against the counties."

Arnzen noted that money is currently tied up and the schools can't use it until a decision is finalized.

"So it's a real problem," Arnzen said.

He said Houchin's recommendation was to roll over last year's values and add any new construction or personal property installed.

"She would like to continue with that value and recommends the Board not make a change at this level. It will be appealed at the state level anyway ... so that's where we're at," Arnzen said.

Carron said in regard to the schools, Ameren wants to see a resolution.

"Our biggest issue now is that we're treated like any other taxpayer with property and be allowed some form of appreciation," he said.

Carron said there are inconsistencies across the state with some counties giving appreciations and others not.

"Nobody wins in this situation -- except for the attorneys," Carron said. "We'd like to see something resolved sooner rather than later for both sides."

The Commission went with Houchin's recommendation and approved making no changes at this time.

Also present at Tuesday's hearing were Donnie Kiefer and Dennis Ziegenhorn, associate county commissioners; Shari Felter of the Scott County Assessor's Office; and Scott County BOE citizen representatives Sonny Alcorn of Sikeston and Kathy Schlosser of Kelso.

Presiding Commissioner Jamie Burger was not present because he was attending a Transportation Advisory Committee meeting in Dexter.

In other business Tuesday, Ziegenhorn and Kiefer noted the county's sales tax revenue is at $198,234.70, which is up $34,671.40 from last month and it's $25,552.32 higher than the month of July's revenues in 2016. For the year, revenue is slightly up $2,317.79 compared to the same time last year.