Attorneys for Indiana Michigan Power and Lake Charter Township are scheduled to appear before the Michigan Tax Tribunal this morning [Thursday] to set the schedule for arguments over whether the property taxes on the D.C. Cook Nuclear Power Plant are too high.
Indiana Michigan Power, the owner of the Cook Nuclear Power Plant in Lake Charter Township, is appealing their property tax assessments for 2022 and 2023 and if they’re successful, it could cost Berrien County, Lake Charter Township, Bridgman, local schools, and the State of Michigan tens of millions of dollars a year in lost tax revenue.
Michael Homier is the attorney for Lake Charter Township and says the Cook property is worth more than $2 billion dollars, they’re not being assessed as much as they probably should be, and the impact of reducing the assessment would be significant.
”We’re dealing with large numbers, right? It’s a nuclear plant. So right now, at least on the tax roll, the true cash value is a little over $1. 1 billion, which means the true cash value is approximately a little over two billion dollars,” said Homier.
“We’re very focused on it and we intend to defend the value that we believe is correct on the roll, not withstanding the fact that our appraisal has shown that it’s under assessed… that issue will be litigated and the tax tribunal will have to decide what the value is.”
I&M says they should be taxed on an amount closer to $780 million. Homier says that’s far too low compared to current assessments including a third party review.
I&M provided a statement saying they understand the impact to the area, they don’t take the step of filing for a reduced assessment lightly, but their parent company, AEP, raised questions.
“A review of property assessments by AEP, I&M’s parent company, has raised questions about the current assessed value of Cook. Michigan has a routine procedure for property owners to seek a review of the assessed value of a property. I&M joins numerous businesses and homeowners in following this public procedure.”
The statement from I&M went on to say they are working with local officials on the matter.
“I&M understands a reduction in the assessed value of the Cook plant would impact Berrien County’s property tax base and local government entities. I&M is having ongoing discussions about the issue with local officials to keep them informed and listen to any concerns.”
If the Michigan Tax Tribunal agrees with I&M, Cook’s assessed value would be lowered by approximately $328 million in taxable value — meaning a drop in tax revenues estimated at $16 million to $20 million dollars a year.
On Lake Charter Township’s website, they’ve touted low taxes in the area, largely due to the contributions of Cook via the plant’s property tax revenues.
“Because the Cook Plant tax revenue allows us to provide police/fire services, library services, trash, and recycling, all from general funds, making additional millage typically needed to fund these types of services unnecessary and aiding in keeping your taxes low.”
A tax tribunal hearing and decision on the true value of D.C. Cook’s property and the related assessment is expected sometime in 2024.
