“That’s an extremely big deal to
short your tax payment by
whatever it was, nearly $1
million ... and, of course, the
percentage breaks down between
Loudon (County) and Loudon city,
I reckon,” Commissioner Van
Shaver said. “So, that’s
certainly a blow to fail to get
revenue already counted into the
budget and that sort of stuff.
It’s my understanding that they
have a legal right to do that
and they obviously have chosen
to do it.”
The letter indicates the
decision is justifiable given
recent rulings from the
Tennessee State Board of
Equalization over a personal
property assessment dispute for
2011 and 2012.
“It is our intention to pay the
tangible personal property taxes
based on the non-standard value
reported in the 2016 return of
$104,377,619 as this return was
also supported by Mr. (Tim)
Landolt using the same
methodology as he used on the
2011 & 2012 appraisals,” the
letter said.
The letter also notes Tate &
Lyle plans to pay real property
estimates based on a “good faith
estimate” the Assessment Appeals
Commission will rule in its
favor of its valuation of $42
million for 2016.
As of Monday, Loudon County
Property Assessor Mike Campbell
said the county has not been
notified of a ruling on Tate &
Lyle’s real property. A hearing
was held in November.
Campbell said the nearly $1
million shortfall could make a
“very large impact,” which is
the equivalent of a 13-cent rate
increase to make up the
difference for the city of
Loudon and nearly 4 cents for
the county.
“I’m not implying there will be
a tax rate increase. The
shortfall illustrates what the
actual impact is for the two,”
Campbell said in an email
correspondence. “It takes months
to establish a budget,
calculating expenditures,
calculating revenues and
planning for projects then to
have shortfalls of these sizes
hurts everyone.”
Campbell said Tate & Lyle is
expected to pay last year’s
taxes by the end of February.
The county’s assessed value of
Tate & Lyle’s personal and real
property was about $56 million
and $22 million, respectively.
Tate & Lyle assessed its
personal and real property at
about $31 million and $16
million, respectively.
“Tate & Lyle’s objective from
the beginning of this property
tax appeal has been to establish
a correct and fair assessed
value for our Loudon plant,”
Chris Olsen, Tate & Lyle
representative, said in an email
correspondence. “The Tennessee
Board of Equalization has now
issued rulings establishing the
assessed value for both real and
personal property associated
with our Loudon plant. Tate &
Lyle has notified the county of
our intention of complying with
the Tennessee Board of
Equalization’s ruling in the
payment of our property taxes.
It continues to be our desire to
work with the county to minimize
disruption, while adhering to
the board’s decision.”
Loudon City Councilman Jeff
Harris said officials will have
to “keep a tight rein” as
departments start preparing for
the coming fiscal year.
“We’ve basically just tried to
tell the department heads it
just kind of needs to be a trim
budget because it’s probably —
we’re just going to try to keep
a tight rein on everything with
not knowing what the outcome of
all of this is going to be and
even more so now that we know
we’re not going to have that tax
revenue,” Harris said.
City Manager Lynn Mills said
Tate & Lyle’s payment will be a
reduction of $372,178.81 from
how much was the city valued the
company’s real and personal
property for 2016. With a
smaller payment expected, Mills
said the city will have to look
“real hard” at cutting expenses
and possibly tap its fund
balance.
“So many of our departments —
virtually all — are affected by
the value of the penny,
especially our school system,”
Loudon County Mayor Rollen
“Buddy” Bradshaw said. “They’re
such a huge part of our budget.
That’ll be the biggest impact
will be on the schools, but then
again when you look at our
highway department and all of
our departments virtually are
based — I think there’s a few
there on some sales tax and
stuff. The loss of those four
tax pennies, that’s big,
especially with budget time
coming up.”