Supervisors consider property tax abatement

The Jefferson County Board of Supervisors denied a property tax abatement this morning, but will reconsider the request after gathering additional information.

The property in question was purchased mid-year from the state by Sapphire Holdings. Sapphire Holdings has been assessed property taxes for the full year although the roughly 13.5 acres were owned by a tax-exempt entity for five of the months.

During the board?s initial consideration, county auditor Scott Reneker advised ?this happens from time to time,? but taxes have not been abated for any similar property transfers.

Generally, a buyer is aware of the property taxes that will be due, and the seller compensates the buyer at closing, Reneker said.

Supervisor Lee Dimmitt pointed out the county would not have collected any taxes on the land if it had remained state owned.

County assessor Sheri Blough Neff said the board?s decision would set a precedent. She expects the county will run into several more similar transactions as the state sells off excess land it bought to complete Highway 34.

Blough Neff also noted the board isn?t privy to the negotiations that may have occurred at the time of sale.

The board voted against abating the $177 tax bill, but took up the issue again when Sapphire Holdings? legal counsel joined the meeting later.

Attorney Paul Miller questioned how the new owner could be required to pay taxes that would not have been paid under state ownership. He said Sapphire Holdings should only be accountable for taxes from the day it took ownership.

He said there was no parcel ID for the land until it was sold.

County treasurer Terri Kness said she had been advised by other treasurers to request the board abate the taxes in this situation.

Burgmeier wanted to know if other boards have abated the taxes and if they consistently abate them when property changes from tax-exempt ownership to taxable ownership.

Supervisor Dick Reed also was concerned about the precedent it might set.

?We try to be fair and equitable,? he said.

Dimmitt suggested the abatement could be available upon request and only within a reasonable amount of time.

Burgmeier suggested the board consult the assessor?s office?s legal counsel, and the board directed Kness to pose the question to the Department of Revenue.