Court reverses course in Ameren's appeal over assessments; schools can't touch money

A court victory for Ameren Missouri could mean schools lose out, according to one Cape Girardeau County official.

County Assessor Bob Adams said the initial dispute was in 2013 between Ameren Missouri and 16 counties, including Cape Girardeau County.

Discrepancies relating to the methodology used to determine valuation, specifically dealing with the depreciation of property and resultant taxes on the valuation were the main points of contention, according to court documents.

The assessment of natural-gas distribution lines was too high, Ameren argued, and paid the property taxes under protest.

That tax revenue is being held in escrow until the case is resolved, Adams said.

The Missouri Court of Appeals ruled Tuesday in favor of Ameren's appeal after a trial court decision in September 2016. That ruling by Stoddard County Circuit Judge Stephen Mitchell ruled in favor of Cape Girardeau County and concluded a "depreciation of over 50 percent" had been applied by the county assessor's office.

To the public, this decision won't have much of an effect, Adams said.

"When this whole thing started, the first question we asked [when] Ameren wanted this reduction was, 'Will you reduce the rates to the citizens in our community, if you're going to get a significant tax reduction?' They said no, it will not affect rates."

For the public, he doesn't see much advantage except one significant downside.

"If they prevail, it'll cost the schools (in the county) $250,000, $260,000 a year," Adams said, and estimated the escrow account now holds about $1.2 million. Most of that is tax money that would be paid to the Cape Girardeau School District.

Entities that receive tax revenue, particularly public schools, can't touch the money until the case is decided in the county's favor, Adams said.

"If we prevail, it will be released to the schools," Adams added.

Adams said this has been a long, frustrating fight.

"The statutes are clear to us, and we're within them," he said. "What they [Ameren Missouri] are asking for is to create a different classification for real estate, which is unconstitutional" against the Missouri Constitution.

In April, Adams said county assessors are following state law in determining the value of the gas-distribution systems.

Stoddard County Circuit Judge Stephen Mitchell ruled in favor of Cape Girardeau County in September 2016, Adams said in April. The judge concluded Tuesday's decision from the Division 4 Court of Appeals states the state tax commission changed valuation processes in 2013, requiring natural-gas companies to report real and personal property for valuation and assessment.

Prior to 2013, depreciation was not applied to property value, but in 2013, Ameren filed a report different from the county's assessment.

According to Tuesday's ruling, Ameren submitted its 2013 report, with original costs of about $42.9 million and a depreciated value of $19.9 million, for an assessed value of $6.4 million.

Adams questioned Ameren's figures, the ruling states. The ruling then states Adams used an initial figure of $39.5 million and made no deduction for depreciation, for an assessed value of $12.7 million.

The state tax commission agreed with Adams' valuation, according to the ruling, and the trial court agreed.

Ameren's appeal charged the commission was in error.

Monday morning, Adams said, his office's attorney will file the paperwork to appeal to the Missouri Supreme Court for a decision.

"That's where we stand right now," Adams said.

Timothy Tryniecki, a partner with Armstrong Teasdale, a law firm in St. Louis, said Tuesday by phone, "We represent Ameren Missouri and we're very pleased with the outcome of this decision, and the other two court of appeals decisions," referring to the 16 Missouri counties in three appellate courts.

mniederkorn@semissourian.com

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