Senators question CFAC tax relief
Montana’s U.S. senators have expressed concern about a request that Flathead County waive 95 percent of the 2010 property tax bill for the Columbia Falls Aluminum Co.
In a press release, Sens. Max Baucus and Jon Tester urged Glencore, the parent company of the closed aluminum plant, to “work with the community to find a solution that wouldn’t harm Flathead County schools, which rely on local property taxes.”
The two Democrats want the plant to reopen. They say that would create “as many as 350 good-paying jobs in the Columbia Falls community.”
Baucus and Tester wrote to officials with both Glencore and the Bonneville Power Administration “in support of a power purchase agreement between them that would pave the way to reopen the plant.” They say the aluminum market has grown recently and the market price of power has declined.
The plant closed Oct. 31, 2009, after the company was unable to reach an agreement on the price of electricity with the BPA.
A public hearing on the aluminum company’s tax reduction request is scheduled for 7 p.m. Monday in the School District 6 administration building in Columbia Falls. It will be conducted by the Flathead County commissioners and the Columbia Falls school board. The two boards have until July 15 to decide on the request.
People may speak at the hearing or submit written comments Monday night.
A new state law allows companies to seek tax relief if the company can prove it has been closed for at least six months prior to a public hearing on a tax waiver request and that it won’t operate in the six months after such a hearing.
In a letter requesting the tax waiver, aluminum company spokesman Haley Beaudry wrote that the company was “seeking a way to justify restarting production and returning to operational status.” He also wrote that the plant would “restart when market conditions warrant.”
The aluminum company’s adjusted 2010 tax bill from the county was $462,140. The state had reduced the amount due by $82,537 because the plant is closed, according to Flathead County Treasurer Adele Krantz.
Tester and Baucus also pointed out that Glencore has announced that its initial public stock offering could raise as much as $12 billion for the company.
When Glencore, a Swiss-based commodities firm, launched its public share offering in mid-April, analysts estimated the company’s value at between $60 billion and $70 billion.
Reporter Shelley Ridenour may be reached at 758-4439 or by email at sridenour@dailyinterlake.com.