BIW rejects assessment, won’t pay tax

BATH — The Bath Iron Works shipyard, Maine’s largest private employer and the city’s largest taxpayer, is refusing to pay $500,000 of its $3.7 million property tax bill, contending its assessment is wrong.

BIW announced the challenge following an examination of its appraisal by the shipyard’s accounting firm. The shipyard contends its valuation of $174 million is too high and wants its 1991-1992 bill lowered.

City Assessor Michael Austin said a successful challenge by BIW, whose property represents about one-third of the city’s valuation, would raise the average tax bill for other Bath taxpayers by about $100.

“I don’t think there would be any drastic cuts in services, but the burden would definitely shift to other taxpayers,” he said.

BIW spokesman Jim McGregor said the company, which paid $3.3 million in taxes last year, paid $3.2 million of its bill Tuesday.

“We don’t view our position as adversarial,” McGregor said. “But there’s a competitive shipbuilding world out there and we have an obligation to look at all our costs.”

McGregor said this is the first time since 1977 that BIW has hired a private firm to double-check its property appraisal.

Austin said the major difference between the city’s appraisal and that of the firm Ernst & Young was the value of BIW’s land and buildings. The firm said they were worth $64 million, while the city assessed the property at $120 million.

The city also assesses BIW taxes for another $54 million in personal property, such as machinery.

Austin said the company questioned assessments in 1983 and 1988, but never formally challenged its taxes. The city assessor said he will meet with Ernst & Young on Tuesday to discuss the challenge.

If BIW files a formal request for an abatement, Austin has 60 days to decide whether to forego the $500,000.

If BIW’s request is denied, the company can go to the Bath board of assessment, or to the Sagadahoc County Superior Court or the state Board of Property Tax Review.