By: Brittany Flaherty Theis

On December 23, 2014, the circuit court approved a real property tax assessment settlement agreement for Exelon Corporation’s Braidwood Nuclear Power Station. Whitt Law attorneys represented the Reed-Custer School District in all stages of the assessment litigation, negotiations, and preparation and approval of the settlement agreement.

In 2011, Exelon paid $20.2 million in property taxes based upon an equalized assessed value of $450 million for Braidwood Nuclear Power Station, under the terms of a real property tax assessment settlement agreement expiring that year. For 2012, Whitt Law successfully advocated for an increase in EAV to $470 million, including $20 million in new property under the Property Tax Extension Limitation Law. Braidwood Station’s tax bill for 2012 increased to $24.2 million. In 2013, Whitt Law was successful in getting the EAV raised to $490 million, including $20 million in new property, and Braidwood Station had a tax bill of $26.9 million. Each year, the EAV was appealed to the Illinois Property Tax Appeal Board, where Whitt Law continued to represent the School District.

Throughout the appeal processes, negotiations continued between the School District and Exelon. In 2014, the School District and Exelon reached an agreement, which was ultimately approved by all taxing bodies with a taxable interest in Braidwood Station. The parties settled on an annual property tax amount of $26.1 million for each of years 2014 through 2020, which represents only a 3% reduction from the 2013 tax bill and is 29% above the last year of the prior agreement (2011). The average EAV of Braidwood Nuclear Power Station over the life of the agreement is $456.4 million.

Settlement agreements like the one for Braidwood Station benefit both parties by facilitating financial planning and future development, as well as the avoidance of annual disputes. Stuart Whitt, Josh Whitt, and Brittany Theis represented the School District in this matter.

Attorneys at Whitt Law regularly work with school districts, municipalities, and other units of local governments in matters pertaining to the assessment and taxation of complex properties, such as nuclear power stations, oil refineries, and ethanol plants. The firm maintains a team of highly experienced attorneys, industry experts, and knowledgeable appraisers. Whitt Law is ready to advocate for the interests of your school district or unit of local government. Please contact Whitt Law partner Josh Whitt with any questions you may have about this settlement agreement or other assessment or taxation matters.

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