In 2013, local public agencies and community members began evaluating how the current property tax collection and distribution system will apply to the Jordan Cove LNG project development on the North Spit of lower Coos Bay. The individuals worked collaboratively with the Coos County Assessor’s Office to understand the timeline for when taxable assessed value of the project will be added to the tax rolls, and how property taxes will be distributed.
Extensive analysis of various aspects of the situation led to the following conclusions regarding the taxes that will be paid on the value of improvements, machinery and equipment located at the facilities on the North Spit (excluding land value and pipeline value):
If construction begins in 2017, it is estimated approximately $11 million in property taxes may be paid on the improvements in both 2018 and 2019.
The Jordan Cove LNG project will receive a 3-year Standard Enterprise Zone (EZ) Exemption, plus a 2-year Construction in Progress (CIP) Exemption, which will exempt all property taxes for 2020 through 2024.
The Jordan Cove LNG project will resume making property tax payments in 2025, at which point approximately 99% of the tax revenues will be distributed to the Coos County Urban Renewal Agency-North Bay District.
If the urban renewal agency is disbanded or declines the funding, 49% of the money that would flow to K-12 public schools and 4% for the community college would be lost through state education funding equalization.
The total estimated property taxes that will be paid from 2018 to 2036 range between $365 million and $470 million (after deducting Standard EZ and CIP Exemptions).
The elements of the Community Enhancement Plan are as follows:
The Jordan Cove LNG project will seek an exemption from local property taxes;
In lieu of paying local property taxes, The Jordan Cove LNG project will make a fixed payment of $12 million each year during construction (2018 to 2021);
During the remaining 15 years of the plan, JCEP will make CSF payments through a formula based on the assessed value of the property and a recoupment of advanced payments made during the years that JCEP would have been exempt (2020 to 2024).