COFFEYVILLE, Kan., Feb. 26, 2013 /PRNewswire/ -- Coffeyville Resources Nitrogen Fertilizers, LLC, a subsidiary of CVR Partners, LP (NYSE: UAN), announced today that it has reached a partial settlement with Montgomery County, Kan., regarding property taxes paid under protest since 2008 for its fertilizer plant in Coffeyville, Kan.
Under the agreement, the fertilizer plant will be appraised at a total value of $35 million for tax years 2013 to 2016, which will lower the fertilizer plant's property taxes by $10.5 million per year based on current mill levy rates. The settlement also states that the county will retain $48.4 million in taxes the company has paid under protest for tax years 2009 to 2012.
"This settlement is a step in the right direction," said Byron Kelley, chief executive officer of CVR Partners. "This agreement provides Montgomery County representatives with enough certainty to responsibly manage the county's finances. At the same time, it establishes a more reasonable property tax valuation for our fertilizer plant for the next four years."
Also under terms of the settlement, the county will not oppose the company's application for a statutory 10 year property tax exemption with the Kansas Court of Tax Appeals (COTA) for its urea ammonium nitrate plant expansion.
Additionally, the settlement states the company will continue its appeal of its 2008 property tax case and the county will make a payment to the company for the 2008 tax year upon the final conclusion of the appeal, with the amount of the payment based on the appeal's outcome.
"Although we have settled with the county for tax years 2009 through 2016, our 2008 property tax case remains on appeal with the Kansas Court of Appeals," Kelley said. "We will continue to pursue a favorable decision through the appeals process as this decision will have significant impact not only on our operations post 2016 but also for businesses across Kansas."
Coffeyville Resources Nitrogen Fertilizers first protested Montgomery County's property tax valuation of its fertilizer plant in 2008 after the county reassessed the plant's property following the conclusion of a 10 year property tax abatement the company received in connection with the construction of the nitrogen fertilizer plant. As a result of the reassessment, the county changed a majority of the plant's property classification from personal property to real property. The company did not agree with the county's classification and protested the classification and resulting valuation for each year since 2008 to COTA.
About CVR Partners, LP
Headquartered in Sugar Land, Texas, with manufacturing facilities located in Coffeyville, Kan., CVR Partners, LP is a Delaware limited partnership focused primarily on the manufacture of nitrogen fertilizers. The CVR Partners nitrogen fertilizer manufacturing facility is the only operation in North America that uses a petroleum coke gasification process to produce nitrogen fertilizer and includes a 1,225 ton-per-day ammonia unit, a 3,000 ton-per-day urea ammonium nitrate unit, and a dual-train gasifier complex having a capacity of 84 million standard cubic feet per day of hydrogen.
SOURCE CVR Partners, LP