PERTH AMBOY – The City Council is expected to approve an agreement that will refund Chevron $7.9 million in overpaid property taxes and avoid a trial that was scheduled before the New Jersey Tax Court in July.
Chevron had sought a total refund of about $12 million for taxes paid between 2007-2010. The property tax issue arose as a result of a revaluation performed in 2006. The Chevron property had been assessed at $59.8 million; after the revaluation it was assessed at $199.8 million, a 234 percent increase.
City officials say that they will need to seek state approval to sell bonds and borrow money to pay the Chevron refund. Officials anticipate that the payback on the principal of this loan will take about seven to ten years. A $7.9 million bond ordinance is listed on the agenda for Wednesday’s city council meeting.
“While this settlement will be very difficult for the city and its residents to satisfy, all agree that this settlement is fair to both parties and one that is, in the end, comparatively beneficial for the city’s taxpayers,” said Mayor Wilda Diaz.
“Chevron is pleased to reach an amicable settlement with the City of Perth Amboy that represents a fair property tax assessment of our property,” said Jeff Williams, commercial manager in Chevron’s Product, Supply and Trading Group. “This positive outcome is a direct result of the efforts of Mayor Diaz and her administration. They proactively approached Chevron and offered a mutually-beneficial resolution in order to avoid further costly and time-consuming litigation.”
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