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Home My WebLink About1995-08-28 95-385 ORDERion s17, Date August 1995 Mem No. 95-385 Item/Subject: Abatement of Personal Property Taxes Account #57148 Responsible Department Announcing _ Commentary: PLEASE SEE ATTACHED MEMO Oeyvrcneur Hvd Manager's Comments: f� CirY Manger �� Associated Information: Order, copy of letter from Joseph J. a of the office of Maine Municipal Association, copy of state statute. Budget Approval: FinIlce Diurdor Legal Approval: �or Introduced For ❑Paresp ❑ First Reading. Pap _of_ ❑ Referral 95-385 Assigned to Councilor Woodcock August 28. 1995 CITY OF BANGOR (TITLE.) f®Cbtt ABATING FY 1994 PERSONAL PROPERTY TAXES ASSESSED AGAINST TAX ACCOUNT IPPI 57148 (KEYCORP LEASING LTD. ) By City Cauroil 4f W City 4f V4 .' ORDRRM THAT THE CITY COUNCIL OF THE CITY OF BANGOR, ACTING AS MUNICIPAL OFFICERS OF THE CITY OF BANGOR PURSUANT TO 36 MRSA SECTION 841, (1)v HEREBY ABATE PERSONAL PROPERTY TAXES THE AMOUNT OF 415.822.40 FOR FY 94 ASSESSED AGAINST PERSONAL PROPERTY OWNED BY KEYCORP LEASING LTD (ACCOUNT NO. 57148). IN CITY COUNCIL August 38. 1995 Passed C9aa`c}lor Tyler Abstajcv d CITY Clou 95-385 ORDER Title, Abating FY 1994 Personal Property Taxes Assessed Against Tax Account (PP) 57148 (Keycorp Leasing Ltd.) ....................... 4.............. ................................... Aad to mss ... Councilman 95-385 CITY ; _ M AINE we ir �"�VM J� ASSESSINGOEPAFTMENr TEL MANS -4+0 Benjamin Birch, Jr.. Aswseor Lillian Smith,Apprelxr Earl Shonvoid, Appraiael?ech. Philip 8. Draw, Appraisffi?eM. Moria Jordan, Awounl Clark To: Bangor City Council Members RE: Abatement of Personal Property Taxes Account #57148 The attached Council order would abate FY 1994 Personal Property taxes in the amount of 815,822.40, assessed against mobile electric substation owned by KeyCorp Leasing Ltd. and leased to Bangor Hydra Electric Company. The Mobile Substation was taxable in Veazie for FY' 94, under, 36 M.R.S.A. Sec. 603 (3), because it was owned by KeyCorp Leasing Ltd., a "foreign" corporation and was physically located in Veazie on April lst. Bangor Hydra paid personal property taxes on the property by the Town of Veazie. KeyCorp Leasing Ltd., in r, declared the property on its Section 706 return filed with the City of Bangor, and paid the taxes subsequently assessed sed by the city. KeyCorp later requested refund of the taxes paid by them. Article 9, Sec. 8 of the Maine Constitution provides in part that "all taxes upon real and personal estates assessed by authority of this state, shall be apportioned and assessed equally.according to the Just value thereof." This clause prohibits double taxation of the same property, e.g: taxation of the same property by two separate municipalities. State statutes empowers the Assessor either upon written request filed within 185 days from commitment date orn w their o m initiative within one year from commitment, make an abatement to c ect any id-ror, r regularity in assessment. In either, case, thetimehas expired. However, the Municipal Officers either upon written application after one year but within 3 years from commitment or n their own initiative may make an abatement to.correct any illegality, error or irregularityin assessment, Because this property was incorrectly assessed and taxed in Bangor, I recommend that the taxes be abated. Re: tax situs of personal property Dear Erik: This follows up on our discussion earlier today about the mobile transformer station. As I understand the facts. the Wanted property is owned by a foreign corporation, is leased to Bangor Hydro, and was on April 1 located in Veazie. I believe that Veavie is the proper taxing authority in this situation. 36 MRSA I= slates the general rule that personal property is taxed to the owner in the place where he resides. However, there is an exception for personal proper�lyy owned by a nonresident. 36 MESA g603(3) provides that personal property owned by a nonresident may be road to the owner or to the person in possession. but in either can the tax situs is the place where such property is located on April L See I d n-M� t Mach�'_C{y aBrewer 609 A. 1166 fMe. 1992). Since this properly is not real estate. 36 MRSA5E5553 does not cane into play. Likewise, no contractual ontracal arrangement between lessor and leuee uCcling on the assessors. nor can it alter the providers of state law. Please call if you want to discuss this further. - smcuoiy, osm I. Wathen 95-385 MAINE MUNICIPAL ASSOCIATION Le iservices 60 community Drive A,F,o, alum OI3W"86 WIWAM W LIVENGeoU - 'LPIeQLpne 907) 61}84$8 191CCA W UMMSEVI alUgaa a FUIVELLINe Manor R car Jos EPN 1. WAr11EN July 6.1995 +r Erik Stumpfel. Esq. Corporation Counsel i' 0 q i995 City of Bangor Bangor. ME FAX 945-0449 ..._?�..¢�-,9 f7TA2kry T Re: tax situs of personal property Dear Erik: This follows up on our discussion earlier today about the mobile transformer station. As I understand the facts. the Wanted property is owned by a foreign corporation, is leased to Bangor Hydro, and was on April 1 located in Veazie. I believe that Veavie is the proper taxing authority in this situation. 36 MRSA I= slates the general rule that personal property is taxed to the owner in the place where he resides. However, there is an exception for personal proper�lyy owned by a nonresident. 36 MESA g603(3) provides that personal property owned by a nonresident may be road to the owner or to the person in possession. but in either can the tax situs is the place where such property is located on April L See I d n-M� t Mach�'_C{y aBrewer 609 A. 1166 fMe. 1992). Since this properly is not real estate. 36 MRSA5E5553 does not cane into play. Likewise, no contractual ontracal arrangement between lessor and leuee uCcling on the assessors. nor can it alter the providers of state law. Please call if you want to discuss this further. - smcuoiy, osm I. Wathen