Ethanol plant’s personal property boosts total, but will be short-lived
Boone County’s overall property valuation is growing by 16.9 percent for the 2008-09 tax year and will top $800 million for the first time.
The County Assessor’s office on Monday announced the new valuation total of $804,717,906, which represents an increase of $112,848,600 from last year’s total of $691,869,306.
But the big increase won’t last long. More than 40 percent of the total valuation increase comes in the form of personal property from the ASA Albion, LLC (VeraSun Energy) ethanol plant, which began operations last fall.
The ethanol plant valuation totals $47,944,665 this year, and more than $44,035,249 of that total is listed as personal property.
The remaining $3.9 million of ethanol plant valuation is land and other taxable property.
With TIF financing, the value of the plant’s real estate improvements (land and buildings) is diverted from property tax to repay the TIF bonds until those bonds are fully repaid (or 15 years maximum). At that point, the plant’s total real estate value is placed on the property tax rolls.
The plant’s personal property value will also depreciate rapidly in the coming years. Of the $44 million total, $43,974,804 is designated for five-year depreciation, and the remaining $60,445 is designated for seven-year depreciation. That means that nearly all of the plant’s initial personal property valuation will vanish in five years.
But for the next two to three years, the personal property is expected to have a big impact.