WALLINGFORD — Bristol-Myers Squibb will pay significantly less taxes on their 180-acre Research Parkway property in coming years under a new tax appeal settlement between the town and pharmaceutical company.
The settlement will lower the market value of the property by an average of 42 percent over a five-year period — from the town’s 2015 assessment of $121 million to an average value of $69.2 million for the 2015 to 2019 grand lists.
The property’s fair market value was reduced from $121 million to $110 million for the 2015 grand list, $100 million for the 2016 grand list, and $46 million for 2017, 2018 and 2019 grand lists, according to court documents.
Corporation Counsel Janis Small said the appeal was structured so that Wallingford “doesn't take a bigger hit in the first two years when we already collected the tax dollars.”
Bristol-Myers will have a credit applied against “the January 2018 tax installment for the property” to make up for “net tax overpayment results from the assessment reductions” for the 2015 and 2016 grand list, according to a court document dated Nov. 28. According to Small, the credit will be for about $68,000.
Bristol-Myers announced in 2015 that it’s leaving Connecticut in 2018 as part of a nationwide restructuring of its operations. Small said the company’s pending departure “dramatically” impacted the value of the property in negotiations. Small said the town spent a year working to settle the appeal.
“We are satisfied with this settlement, as painful as it is to take a hit in the tax dollars,” Small said. “It’s not an easy pill to swallow.”
Bristol-Myers, the town's top taxpayer, paid $2.3 million on its property in 2015, according to tax assessor Shelby Jackson.
Bristol-Myers spokesperson Lisa McCormick Lavery said the company had no comment on the settlement.
Bristol-Myers filed the tax appeal lawsuit to contest the town’s assessment of their property that was made as part of a town wide revaluation of all properties in 2015. Under state law, each municipality does a reassessment of all residential and commercial property every five years.