Loading...
HomeMy WebLinkAbout1995-10-10 95-438 ORDERCOUNCIL ACTION Item No. 95-438 Date October 10 1995 Item/Subjects Directing City Solicitor to Dismiss Pending Appeals at State Board of Property Tax Review (Personal Property Tax Account - 57155 - Coles express, Inc. - FY 1994 5 1995). Responsible Department: Assessing See Memo Attached. Dopa tment Read ' Manager's Comments: Associated Information: Order Finance Director Legal ,yApproval: F ✓ City Solicito Introduced For Passage First Reading Referral Page of _ 95-438 Aeogned to Courcgor TylerOctober 10, 1995 CITY OF BANGOR Directing City Solicitor to Discuss Pending Appeals M) giber - _.. ...._...._ -... _y ..... at State Boa& of Property Tax Review (Personal Property Tax Account - 57155 - Coles Express, Inc. - Py 1994 6 1995) BPW Buy Ceuaee of W car OfBsayor. 1'IU' I TEAT The City Solicitor is hereby directed to take all necessary action to dismiss the following appeals now pending before the State Board of Property Tax Review affecting personal property tax assessments by the City of Bangor against Coles Express, Inc. account no. 57155 (PP), for municipal fiscal years 1994 and 1995: State Board docket no. 95-002 State Board docket no. 95-159 . Upon dismissal of the pending appeals, the City Treasurer Is directed to issue refunds of personal property tax overpayments for the years concerned to Coles Express, Inc. in the following amounts: Py 1994 - $11,000.00 Ty 1995 20.695.40 Total $31,695.40 In addition to the amounts stated, the City Treasurer shall refund interest at thestatutory rate for tax overpayments.. INCITY COUNCIL,, 95-438 October 10, 1995 Passed - 0 R D E CITY CLEM Title, Directing City Solicitor to Dismiss Pending Appeals at State Board of Property Tax Revlev (Personal Express, Tex AeeeGfii994 A 1995 cdiee - Express, Inc. - FY 1994 d 1995) ,..tea ....... A gn dto .... .." "`�o n yap . MEMO RE: Coles Express, Inc. 95-438 For the past two years, the City of Bangor has been volved in a dispute with Coles Express, Inc. over the number of cargo trailers owned or leased by Coles Express that are taxable as personal property by the City of Bangor. Title 36 MRSA Section 603 (1-A) provides a taxable situs for cargo trailers as follows: 1-A. Cargo Trailers. A cargo trailer shall be taxed in the place where it is primarily located on April let, even though the cargo trailer may not be present in that place on April 1st. For purposes of this subsection, "primary location^ means the place where the cargo trailer is usually based and where it regularly returns for repairs, supplies and activities related to its use. Motor vehicle registration lists supplied by the Maine Bureau of Motor Vehicles show that as of April 1, 1993, Coles Express, Inc. had registered 349 cargo trailers in Maine as being owned by Coles. As of April 1, 1994 the number registered was 282. On April 1, 1995, the number registered was 668. In addition, Coles was leasing same 266 cargo trailers for its own use as of April 1, 1994. on April 1, 1995, Coles Express was leasing 102 cargo trailers for its own use. Based primarily on the Bureau of Motor Vehicles' registrations, the City Assessor originally assessed Coles Express, Inc. for 294 cargo trailers in PY 1994 and for 292 cargo trailers in FY 1995. Coles appealed each assessment to the City's Board of Assessment Review, which reduced the number of trailers to 44 for FY 1994 and 66 for FY 1995. The City appealed both decisions to the State Board of Property Tax Review. A hearing has been scheduled before the State Board for November 14, 1995. Coles Express, Inc. has continuously maintained that the large majority of its cargo trailers are not •'primarily located" in Bangor because they operate throughout Coles Express' market area, consisting of the northeast United States and portions of Atlantic Canada. Coles Express maintains four terminal locations in the State of Maine (Bangor is the largest of these), as well as a number of service locations Outside the State. All Cargo trailers purchased by Coles Express are registered in the State of Maine, in part because registration in other states is more expensive. Maintenance and ownership documents on the entire cargo trailer fleet are maintained at the Bangor terminal, which also houses maintenance and transfer facilities and Coles Express, Inc.'$ corporate headquarters. 95-438 -2- The City's position in these appeals has been that absent evidence of taxation of particular cargo trailers in another State r by another municipality in Maine, and absent compliance with information requests sent to Coles Express, Inc. by the City Assessor pursuant to 36 MRSA Section 706, ColeS Express, Inc.'s cargo trailer fleet in taxable by the City of Bangor as personal property. Following the City's appeal of the Board of Assessment Review's decision granting an abatement of Coles Express, Inc.'s FY 1995 personal property taxes, Coles Express initiated discussions with the City Assessor through the City Manager's office. As a result of those discussions, Coles express, Inc. has provided the City with su9pl emental information regarding its cargo trailer fleet operations for Py 1994 and 1995. The City has had an opportunity to evaluate the information, which indicates that on the basis of total fleet mileage, total tonnage, and total revenue, operations attributable to the Bangor terminal range from 14.9% does to 2.8% of Coles Express, Inc.'s total operation, depending on the particular month and basis of the comparison. Bangor's share of the company's total operation have trended downward as Coles Express, Inc. has expanded its fleet and market area since FY 1994. Based on the new information provided by Coles Express, Inc., it appears that the number of cargo trailers "primarily located' in Bangor is lower than the number of trailers for which the railersadoeshas inbeen factassessed, correspondand t that the nhe corumbers Mound by ef the City's Board ofAssessment Review for each of the years concerned. Accordingly, it is appropriate for the City to dismiss our pending appeals before the State Board of Property Tax Review. The attached Council Order would direct the City Solicitor to dismiss the pending appeals. Upon dismissal of the City's appeals, the previous decisions of the Board of Assessment Review will take effect. The net effect of the attached Council Order will he a refund of $31,695.40 in personal property tax Overpayments, plus interest, to Coles Express, Inc. We have previously reserved sufficient funds against the possibility of an adverse result in the pending appeals.