By THOMAS JENKINS Staff Writer It appears the tax lawsuit brought against the Howard County Appraisal District by Alon USA — owner of the Big Spring Refinery — will go to trial beginning Jan. 11, as 118th District Court Judge Robert H. Moore Jr. set the date this week.
The lawsuit marks the fourth consecutive year Alon USA has contested its tax appraisal, having filed petitions in 2006, 2007 and 2008 as well. The petrochemical company agreed to pay taxes on values of $130 million for 2006, $185 million for 2007 and $175 million for 2008. The property was appraised by the district at $320 million in 2007 and $275 million in 2008. Chief Appraisor Bret McKibben said his office was served with lawsuit papers claiming the district's $249 million appraisal of the facility was off by more than $100 million. “They presented their argument to the ARB (Appraisal Review Board), which dropped the appraisal from $249 million to $169 million,” said McKibben. “However, indications were they were wanting something closer to $80 million, so here we are, getting ready to head back into court.” McKibben said the oil company's target appraisal of $80 million comes in direct contradiction to the repairs made at the facility since it was rocked by an explosion in February, destroying much of the local landmark's refining capacity. “They spent more than $300 million just in repairs,” said McKibben. “That's more than three times what they are claiming the facility should be appraised at, so it doesn't necessarily make sense. According to their representation at the ARB, they say they are aware of the huge deficit and are simply hoping to make their money back. I'm really not sure what they are thinking at this point.” Last year's litigation ended in October, following several months of legal proceedings and more than a week of testimony before Judge Moore. Alon ended up with tax bills of $1.869 million for 2006, $2.569 million for 2007 and slightly more than $3 million for 2008. Having taken more than two years to settle the last time around, McKibben said the process will most likely be just as arduous this time. “Unless some sort of settlement can be reached, we're looking at the same process as last time,” said McKibben. “It makes it rough for this office. A lot of people will be asking us why we're doing this to Alon, and a lot of people will be asking why should they get out of paying their fair share of the taxes. We just have to do our best in the meantime. No matter what we do, there will be people on both sides of the fence.” Contact Staff Writer Thomas Jenkins at 263-7331 ext. 232 or by e-mail at
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