In February Massac County Supervisor of Assessments Gary Hamm joined WMOK for Coffee Break. We discussed the tax implications of the potential Joppa-Massac Annexation.
Hamm explained that the current issue has been brought to the forefront by the early closure of EEI in September of 2022. Hamm said that the total value of the EEI plant on its parcel of land was $11 million dollars and it’s closure dropped the equalized assessed value – or “base”.
Hamm told WMOK that had the Joppa School Board not dropped their levy last year and again this year that taxes would have been “astronomical”. Hamm said though the tax rate is currently low that is because the school board chose to drop their levy.
The Payment in Lieu of Taxes (PILOT) will have an effect on the numbers. With the Payment in Lieu of Taxes in place – EEI will continue to “make payment in lieu of taxes” in the amount of 500,000 in 2023, 500,000 in 2024, 400,000 in 2025 and 200,000 in 2026. Hamm elaborates on this as well as Property Tax Extension Limitation Law in the audio clip further down in this article)
In our clip with Hamm below he goes on to discuss the tax implications on businesses in that taxing district such as LaFarge in addition to the Property Tax Limitation Law.
Of the tax rate moving forward should the annexation take place, Hamm said: “I can’t see where Massac Unit #1 would have to raise their taxes and add what Joppa has levied on top of what they levying – if that’s the case and they don’t then the tax rate is going to drop over 1% for everybody. Anyone who says that if you consolidate taxes are going to go up is misinformed.”
In our discussion with Hamm he discussed the hope by some that EEI will be replaced by Battery Energy Storage System. There are some logistics to be worked out with that arrangement and Hamm said to assume that the Battery Energy Storage System would make up the difference is speculation. He told WMOK there are still moving parts in legislation regarding how the plant will be assessed.
Hear our conversation with Massac County Supervisor of Assessments Gary Hamm below:
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