Riley County commissioners discussed the impact on local government entities and taxpayers from recent the Board of Tax Appeals case.
County Clerk Rich Vargo presented the impact per the request of other local government entities. Before the BOTA case, Home Depot was being taxed in 2018 over $239,000. That number now is around $150,000, which was the previously reported number the county owed. The county actually owes $87,000 which is the difference between the two values.
The costs of the refund will be split three ways: $29,186 from Manhattan, $24,194 from the County, and $33,582 from USD 383, the only school district impacted. The county will also have to solely pay over $7,500 dollars in interest, for a total of over $31,000. This interest has been built up since the case is originally from 2018.
“When a larger organization gets a reduction in value, that spreads out that tax burden to everyone else that is still in the tax roll at their full value. That’s where it impacts the Riley County taxpayers,” says Vargo.
Vargo addressed some misconceptions with the county’s value process related to the case. He has seen some claims that the county is taxing Home Depot on their inventory. In reality, they are only taxed on the land, building, and any infrastructure attached to the building.
Commissioners reluctantly approved the court ordered corrected payment to Home Depot, but plan to appeal the decision in the near future. Before an appeal can be made, County Counselor Clancy Holeman says he, the coutny appraiser, and the attorney represented at the BOTA case will review the full decision.
A request has been made for that full decision, as there is technically no final decision made yet.
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