PVA, Kroger come to agreement on past tax assessments

Published 1:48 pm Thursday, October 1, 2020

Danville schools, other local groups will benefit


Kroger Limited Partnership I and the Boyle County Property Valuation Administrator have jointly announced they have reached an agreement for a “fair and equitable” assessment of its store property after a four-year disagreement. This will result in several local entities, including the Danville School district, receiving more tax dollars from Kroger’s property taxes from 2016, ’17, ’18 and ’19, according to PVA LaCresha Gibson.

According to a joint news release, Kroger’s store, located at 200 Skywatch Drive, was previously assessed at $3.58 million until 2014, when it was raised to $5.5 million. After receipt of an appraisal, Kroger questioned the assessed value in 2016 and the two parties have been in discussions regarding the appropriate value since that time locally, with the Kentucky Claims Commission, as well as the Boyle Circuit Court and Kentucky Court of Appeals.

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Since 2016, Kroger has paid property taxes on what it believed was the true assessed value of $2.85 million, according to Advocate-Messenger stories.

On Tuesday, Gibson announced to the Boyle County Fiscal Court, “Both Kroger and I have made the decision to enter in an agreed-upon order for tax years 2016 through 2019. We feel the assessment that we agreed upon is both fair and equitable and what is best for Boyle County.”

Kroger’s appraisal for 2016 was agreed to be $4.3 million, and the following years the assessment was raised to $4.45 million because of the liquor store’s enclosure, Gipson said.

The release stated, “Kroger is a valued employer and corporate citizen of Boyle County that invests in the community and sought to establish the most accurate value as possible for its Danville store. The Boyle County PVA likewise sought to establish an accurate value that was appropriate for Kroger and all Boyle County taxpayers.

“Recognizing that opinions of value vary and are challenging to reconcile, both parties decided that a joint effort of settlement would be a benefit for all involved, including Boyle County taxpayers and the public agencies that are supported by tax receipts.”

Once the agreed orders of settlements have been filed with the Boyle Circuit Court and the Kentucky Claims Commission, the Kentucky Department of Revenue will prepare supplemental tax bills to make up the difference between what Kroger had paid and what the higher assessments were agreed upon through 2019, “which will be paid promptly by Kroger,” the release stated.

On Wednesday, Gipson said that means Kroger will receive supplemental tax bills based on $1.55 million for 2016, and $1.7 million for 2017, 2018 and 2019. However, she doesn’t have the exact figures that will be on the bills because she doesn’t know if interest will be added. No penalties will be included on the bills.

Every entity that received property tax monies will receive their portion from the supplemental payments, Gibson said.

“The Danville Schools are going to benefit the most.” The fiscal court, agriculture district, city of Danville, and the public library will also receive their fair share of the money, she added.

In the news release, Gibson stated, “Kroger and I both feel that the assessed values of 2016 through 2020 are fair and equitable to both sides. Kroger has a right to feel confident in a reasonable assessment of value and I have a constitutional duty to provide the most accurate opinion of value for the integrity of our tax system. … The settlement reached allows Kroger to be confident in the accuracy of its assessment and I am confident that I upheld my duty.”