Hampton Roads, VA - 11/08/2009
Clear59°Clear
Forecasts | Doppler Radar
Traffic Cameras & VDOT Alerts

Portsmouth sends APM delayed tax bill for $2.7M

Posted to: Business Ports and Transportation Portsmouth


APM Terminals’ new $450 million Portsmouth facility will now be home to its Americas headquarters. (The Virginian-Pilot)



PORTSMOUTH

City Treasurer Jimmy Williams said Friday that his office sent APM Terminals a personal property tax bill for about $2.7 million.

The city's commissioner of revenue, Franklin D. Edmondson, gave the treasurer's office the company's assessment information Friday, Williams said.

If the bill is paid within 45 days of July 1, the payment can be applied this fiscal year, said city spokeswoman Dana Woodson.

The timing of the billing became an issue earlier this month after the city's chief financial officer and acting city manager, Betty Burrell, questioned why APM Terminals had not paid its taxes by June 5, the due date for personal property levies.

APM Terminals is the city's largest taxpayer. Burrell was concerned that the lack of a payment could lead to a shortfall in the city's budget this fiscal year, which began July 1, 2008, and ends June 30.

Allison Enedy, an APM spokeswoman, and Edmondson said Friday that the company requested an extension on its personal property taxes in February. The extension gave the company more time to assess its inventory, she said.

Edmondson said state law prohibits him from disclosing taxpayer information. However, he said Friday, he is now able to discuss APM's tax information because company officials gave him permission to speak.

So far, Edmondson said, his office has granted about 75 extensions this year, which is roughly one percent of the city's business filings.

APM's filing date for its inventory was extended to April 30. That's 15 days past the date Edmondson is required by state law to pass the tax books for personal and business taxes to the city treasurer for anyone or any business that has not been granted an extension.

That's why APM's assessment was not sent to the treasurer's office sooner and with the majority of this year's primary billing, Edmondson said.

He also said his office assesses property on a calendar-year basis, which does not always square with the city's fiscal-year schedule.

"Sometimes they coincide, other times they do not, because of extensions and other things that are beyond our control," Edmondson said. "The assessments are made on the value of the property and not necessarily on the budget needs of the city."

Enedy said: "On our side of things, certainly everything was done according to the appropriate timeline and according to the state code."

She said that Maersk, APM's parent company, the company's tax department and Edmondson's office have a good working relationship.

The marine cargo terminal paid more than $6.7 million in real estate and personal property taxes last year.

Jen McCaffery, (757) 446-2627, jen.mccaffery@pilotonline.com



ADVISORY: Users are solely responsible for opinions they post here and for following agreed-upon rules of civility. Comments do not reflect the views of The Virginian-Pilot or its Web sites. Comments are automatically checked for inappropriate language, but readers might find some comments offensive or inaccurate. If you believe a comment violates our rules, click the "Report Violation" link below the comment.

There should not be any

There should not be any personal property taxes in the first place. We had an old microwave for personal use in a family business. Tax man shows up, says "oh looky here" adds it to the personal property tax bill, I'm not even sure it was working. My father promptly picks it up and puts it in the man's car and says "here, it's yours, you pay the tax on it! Tax man was speechless.

a real bill buster

i certainly got my property tax bill!! in fact, i had missplaced it and missed the due date, but they were more than happy to remind me that i didnt pay up. so happy in fact, they tacked on late fees and interest just so that i could appreciate how concerned they were. uugghhh whats that smell? oh yeah, city leaders full of ........ well you get the picture. i am so glad all of my tax dollars are being handed out like candy and nothing to show for it. i am currently working on moving my business to another city that doesnt smell so bad.

too bad

The Pilot holds this story until after the election. As Jesse Scout said we could have elected a new City Treasurer.

APM taxes

Does the city of Portsmouth know that APM has two cranes at PIT? How about the tax on those.

Ports. residents deserve this.

We had a chance to change one of the big players in this mess on election day. Most voters of Portsmouth kept the same good ole boy City Treasurer in office when there was a chance to get a highly qualified, tech savy man in the position. Portsmouth citizens reap what they sow by voting the same buffoons into office time and time again.

BTW, it is my understanding that Portsmouth contacted Norfolk some time ago to find out how they taxed their port facilities. I guess our city leaders were too busy trying to fund a swimming pool than to take Norfolk's advice and collect a couple of mil in taxes.

mose

You may have missed the point. It is not that the city is giving them a break. The city is fighting between the different offices on how to tax them. They are ready and willing to pay as soon as the city bills them. Personally, I think they should bill them as last year so that the money can be used for its tax year. The city claims to have three years to get it right. At this rate they will be in the deficit for the next ten years as they bicker between each other until someone else is elected or hired into their spot and then the bickering starts again. HOWS THIS: The city does not collect creating a deficit. Now it writes that deficit off for federal assistance. When federal money arrives, they bill the company and now have over $4 million to spend on stupid stuff. They wont be the first city to do it and not the last. But, the residence will pay the price.

This could be tragic

OMG! I cannot believe this. They need to collect that money and soon. How else can they afford to open up the free pool?

This is exactly why P-Town has the reputation it does.

This is exactly why P-Town has the reputation it does. How is machinery and tools assessed for other businesses in Portsmouth? The cranes should be assessed the same way. His is not rocket science.

The citizens of Portsmouth

The citizens of Portsmouth deserve better. Bottom line is, there's just no accountability at Portsmouth City Hall. The left hand never knows what the right hand is doing. We've seen it with the Ntelos Pavilion, the Virginia Sports Hall of Fame and, now, APM Terminals. Portsmouth residents should converge on City Hall and insist that a better system of checks and balances be implemented. It's painful to say this, but it needs to be said: the leadership in Portsmouth is a joke.

conert you forgot

To mention the person that has clogged up the works. The Commissioner of Revenue.

If he doesn't send the bills out no one else can collect.

Personal Property Taxes

The City of Portsmouth didn't have a problem mailing my personal property taxes in May. In June, I was assessed penalties and interest without anyone batting an eye. APM Terminals should be treated like every citizens in Portsmouth. Mail APM Personal Property Tax in May and if payment is not received by June 5. Assess APM pentalies and interest.
Why should APM Terminals have special treatment by the city? I consider this practice as "UnFair and Unequal Taxation!"

No bill

They have not received a bill. it is not special consideration; it is ineptness in Portsmouth City Hall

Incompetence

This is embarrassing. City Council, City Attorney, City Assessors, City Treasurer, all tied in a knot about billing and collecting money. None of them know what the others do or when it's supposed to be done, This is a SHAME.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Please note: Threaded comments work best if you view the oldest comments first.

More Ports and Transportation Stories

More Business Stories

More articles from: Business rss feed    Ports and Transportation rss feed   


Toolbox