Something I do not understand. Looking through some old records I have, I found that the EPISD paid Western Refining Company $5,432,688.29 in June of 2013. This was a payment that a lawsuit Western Refining won required the EPISD to pay back taxes that had been collected for them. I tried to find out the whole story in the newspapers but only found that is 2014 the company was evaluated at 1.8 billion and the company said that this was way out of line and was suing again. Then last week we were told the company had been sold for 6.4 Billion.
I wonder just how much tax money was lost because of the court and appraisal people’s inability to evaluate this company’s proper tax rate.
All of the taxing entities should go back to court and try and get their millions of dollars back that they had to repay since 2008. Also, we should look at the payments to the Company in Austin that does this type of appraisal and try to get our money back, something like $340,000 a year.
What am I missing on this deal?
Western owned several refineries and many operations. Tesoro paid $6.4 billion for more than just the El Paso Refinery. The deal undoubtedly also included compensation for future profits.
I doubt that any of the taxing entities will be able to re-open the old lawsuit. It has been settled.
That having been said we should hope that there is a way to look under the covers of this deal between two publicly traded companies. The corporate lawyers and accountants have probably done a good job of combining the numbers so that it will be hard to tell what they valued the El Paso refinery at. Then again they may have slipped up.
Any increase in taxable value of the refinery will probably only benefit the taxing entities in future years.
In A dollar here, a dollar there we wrote about a current school board member’s inability to do some simple arithmetic. She had written that an increase in the refinery’s value from $280 million to over a billion dollars was “about a 200% increase”.