US fertilizer firm Coffeyville Resources in partial tax settlement

26 February 2013 18:38  [Source: ICIS news]

LONDON (ICIS)--Texas-based CVR Partners on Tuesday announced it had reached a partial settlement with Montgomery County in a dispute over property taxes "paid under protest since 2008" for its fertilizer plant in Coffeyville, Kansas.

Under the agreement, the Coffeyville Resources Nitrogen Fertilizers plant will be appraised at a total value of $35m for tax years 2013-2016, which will lower the facility's property taxes by $10.5m per year based on current mill levy rates, the subsidiary's owner said in a statement. The settlement also states that the county will retain $48.4m in taxes the firm has paid under protest for tax years 2009-2012.

The nitrogen fertilizer manufacturing facility is the only operation in North America that uses a petroleum coke gasification process to produce nitrogen fertilizer and includes a 1,225 ton/day ammonia unit and a 3,000 ton/day urea ammonium nitrate (UAN) unit.

In 2008, the county changed a majority of the plant’s property classification from personal property to real property, with the company since protesting the classification and resulting annual valuation to tax chiefs.

"This settlement is a step in the right direction ... [and] provides Montgomery County representatives with enough certainty to responsibly manage the county's finances," said CVR Partners CEO Byron Kelley. "At the same time, it establishes a more reasonable property tax valuation for our fertilizer plant for the next four years."

Under the terms of the settlement, the county will not oppose the producer's application for a statutory 10-year property tax exemption with the Kansas Court of Tax Appeals for its UAN plant expansion.

"Additionally, the settlement states the company will continue its appeal of its 2008 property tax case and the county will make a payment to the company for the 2008 tax year upon the final conclusion of the appeal, with the amount of the payment based on the appeal’s outcome," CVR Partners said.

By: Richard Ewing
+44 208 652 3214

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