Mall owner loses tax case (Printed Dec. 25, 2009)
By Rick Wright
Staff Writer
South Portland can keep $1.4 million in refunds and interest after a favorable ruling last week by the State Board of Property Tax Review, said South Portland Tax Assessor Elizabeth Sawyer.
General Growth Properties, which owns the Maine Mall, had disputed South Portland’s 2006 valuation of the mall property. South Portland had assessed the mall’s property tax value at $260 million, while GGP maintained the property’s value was $190 million, Sawyer said.
Based on its assessment, South Portland billed GGP for $3.3 million. Many other taxpayers also saw increased bills in 2006 due to the property tax revaluation, Sawyer said.
“We are very pleased,” South Portland Mayor Tom Coward said of the tax review ruling.
“It vindicates our feelings about the value of that property and it saves us over a million dollars in taxes,” he said.
“It shows that our tax assessor’s office is on the right track,” said South Portland City Councilor Tom Blake. “I’m glad to see the state took this action.”
While GGP announced Dec. 15 that a bankruptcy court confirmed a reorganization plan, the bankruptcy will have no effect on the tax dispute.
After hearing oral arguments from both sides on Dec. 15, the state board deliberated for approximately three hours before rendering a 4-0 decision in favor of the city, Sawyer said.
GGP’s attorney, Jonathan Goldberg, said the company has 30 days to appeal the board’s decision in Superior Court. Goldberg said he does not know if GGP will pursue an appeal.
“I’m extremely relieved that the city is not going to have to refund a great deal of taxes,” Sawyer said. “That would have been a difficult position for the city to be in.”
After all the bills are tallied, Sawyer estimated the dispute will have cost the city $69,000 to $75,000. Blake said the investment was worth it.
“It would have opened the door to other businesses to file similar suits and that would have been seriously detrimental to the city. We need to stand by our tax assessor and our tax review board,” he said.
Coward said any taxpayer has a right to appeal a property tax assessment and the city has no hard feelings toward GGP over this issue.
“This is a business transaction and a business dispute. We don’t think they’re acting in bad faith,” Coward said. “They’re just trying to save money.”
Blake agreed. “I’m glad this is over and I hope we can continue on a positive path with them. They’re a great partner in our community,” he said.
Rick Wright can be reached at 282-4337, ext. 237
Staff Writer
South Portland can keep $1.4 million in refunds and interest after a favorable ruling last week by the State Board of Property Tax Review, said South Portland Tax Assessor Elizabeth Sawyer.
General Growth Properties, which owns the Maine Mall, had disputed South Portland’s 2006 valuation of the mall property. South Portland had assessed the mall’s property tax value at $260 million, while GGP maintained the property’s value was $190 million, Sawyer said.
Based on its assessment, South Portland billed GGP for $3.3 million. Many other taxpayers also saw increased bills in 2006 due to the property tax revaluation, Sawyer said.
“We are very pleased,” South Portland Mayor Tom Coward said of the tax review ruling.
“It vindicates our feelings about the value of that property and it saves us over a million dollars in taxes,” he said.
“It shows that our tax assessor’s office is on the right track,” said South Portland City Councilor Tom Blake. “I’m glad to see the state took this action.”
While GGP announced Dec. 15 that a bankruptcy court confirmed a reorganization plan, the bankruptcy will have no effect on the tax dispute.
After hearing oral arguments from both sides on Dec. 15, the state board deliberated for approximately three hours before rendering a 4-0 decision in favor of the city, Sawyer said.
GGP’s attorney, Jonathan Goldberg, said the company has 30 days to appeal the board’s decision in Superior Court. Goldberg said he does not know if GGP will pursue an appeal.
“I’m extremely relieved that the city is not going to have to refund a great deal of taxes,” Sawyer said. “That would have been a difficult position for the city to be in.”
After all the bills are tallied, Sawyer estimated the dispute will have cost the city $69,000 to $75,000. Blake said the investment was worth it.
“It would have opened the door to other businesses to file similar suits and that would have been seriously detrimental to the city. We need to stand by our tax assessor and our tax review board,” he said.
Coward said any taxpayer has a right to appeal a property tax assessment and the city has no hard feelings toward GGP over this issue.
“This is a business transaction and a business dispute. We don’t think they’re acting in bad faith,” Coward said. “They’re just trying to save money.”
Blake agreed. “I’m glad this is over and I hope we can continue on a positive path with them. They’re a great partner in our community,” he said.
Rick Wright can be reached at 282-4337, ext. 237
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