Thursday, March 13, 2008

Settlement Reached In Tax Dispute

   Leaders with the City of Lawrenceburg have voted to approve a settlement regarding a tax dispute which involved the old Murray, Inc., property, finally allowing the matter to be put to rest.

   Lawrenceburg Redevelopment Partners, LLC, (LRP) have been involved in litigation since shortly after their purchase of the Murray, Inc., property on Hannon Drive. After the property was purchased it was assessed at a value of $20 million. Officials indicate that the company had intended to file paperwork that would have allowed exemption from paying property taxes. Company officials soon discovered, however, that the federal government had set a cap of $10 million assessed value on this venue of cost savings.

   Company officials reportedly disputed the amount of local county and city taxes they were required to pay, filing an appeal with the State Board of Equalization. Appeals, officials say, could take years through the Tennessee court system.

   Representatives of county and city government have been involved in negotiations with LRP in an effort to clear up the matter. Under the agreement reached LRP “agrees to dismiss its appeal to the State Board of Equalization on or before March 31, 2008,” and pay the entities the taxes owed, along with any interest incurred.

   In conjunction with the agreement, City of Lawrenceburg leaders voted Thursday to amend the city’s general fund budget “to provide that $50,000 of the past due 2006 real property tax owed by LRP shall be contributed to the Joint Economic and Community Development Board of Lawrence County.”

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