ROCKLAND, Maine — The nation’s largest retailer dropped its request for a $105,000 tax rebate from Rockland on the eve of a state hearing.
Attorney Timothy Woodcock of Bangor said that Wal-Mart made a “business decision” to drop its appeal, which had been filed in December. He declined to further comment on the company’s decision.
A hearing on Wal-Mart’s abatement appeal had been scheduled for Thursday in Augusta before the State Board of Property Tax Review.
The appeal challenged an Oct. 15 unanimous vote of the Rockland Board of Appeals to uphold the Rockland assessor’s decision that Wal-Mart had failed to provide all the documents requested in order for an abatement to be considered.
The company first filed its abatement request with the city assessor in February 2014, arguing that the valuation of $8,516,400 in 2013 was far in excess of the true value of the property. Wal-Mart said the valuation should have been $3,125,000.
The company based its request on the sale of its property to Ocean State Job Lot in December 2013 for $3.1 million. Wal-Mart sold the property after it relocated in October 2013 to a larger supercenter it built about three miles south on Route 1 in neighboring Thomaston.
A reduction in the assessment would have resulted in Rockland paying back Wal-Mart $105,000 in taxes.
City Assessor Dennis Reed said he was pleased that the case is being dropped. Reed has defended his $8.5 million assessment, saying that the sale price of the property was not reflective of what the property was worth when it was an operating Wal-Mart. The assessor said the sale to Ocean State imposed restrictions on the property for the next 25 years. Those restrictions prohibit the property from being used for a supermarket larger than 35,000 square feet, prohibits a discount store of more than 50,000 square feet, a discount pharmacy, gambling operations, adult entertainment activities including the sale of sexually explicit videos or books, massage parlors or escort services.
Ocean State also has requested an abatement on the property, which was reassessed by the city at $5,885,200 after the sale. That company seeks to have the assessment reduced to the $3.1 million it paid for the property, which would cut about $55,000 from its tax bill. The assessor is reviewing that request.
Ocean State occupies 40,000 square feet of the building. The Dollar Tree store announced in November that it will open a store in 10,000 square feet of the building this summer, leasing from Ocean State.
The Rockland property consists of a 94,000-square-foot building on 10.5 acres. The store was built in 1991 and underwent major renovations in 2008.
Last year, Wal-Mart asked for abatements at 11 locations throughout Maine and succeeded only twice, both times for far less than the amount requested. This had been the first appeal to the state board by Wal-Mart.