In 1990, a class of landowners near Rocky Flats sued RIC and Dow Chemical, another former operator of the facility. “As Ford is responsible for 40 percent of our tax base, this case further exemplifies our need to diversify and bring new businesses to Flat Rock,” he said.From 1975 to 1989, Rockwell International Corporation (RIC) operated the Rocky Flats facility in Colorado for the U.S. That dispute is before the Michigan Tax Tribunal, he said.ĭropiewski said the city has fought Ford on this before and won. Dropiewski said Ford has paid its real property taxes, but has appealed for a reduction in which the city would lose about $400,000 annually. The city and Ford were unable to reach a settlement on real property taxes, he said. The city has agreed to pay Ford the refund over 10 years interest-free, he said.īoth parties also have agreed to use the settlement tables for 2011 tax filing purposes, he said. He said communities working together did what the State Tax Commission should have done originally.ĭropiewski said the tables will affect the 2009 taxes received from Ford, with the city now owing the company a refund of about $519,000. The settlement agrees to tables based on industry, government and independent third-party data, he said. The city joined other communities with Ford facilities to negotiate new depreciation tables with Ford, Dropiewski said. The tables, approved in December 2009, can depreciate the taxable value of property by up to about 80 percent after one year. “The dispute arose primarily from the State Tax Commission’s sudden issuance of new depreciation tables that only apply to automotive-end manufacturers,” he said. The settlement took months of negotiations, he said. He said the city could have lost more than $1.3 million in revenue, and was able to get more than half that amount back. He said he’s satisfied that this is the best settlement the city could get.
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