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Tax Bites Who pays the most in Southern Oregon? By GREG STILES The names are generally familiar; the plants, warehouses and logos recognizable. The top taxpayers throughout Jackson County touch lives every day - sometimes by the flip of a switch, others by the jobs they provide Pacificorp provides energy that heats in the winter and cools in the summer. The electric utility that serves 10 Western states also makes the largest annual contribution to Jackson County's coffers. The company paid $1,813,052.89 to the county in 2001, based on an assessed value of $161,581,600. That's down from the more than $2 million in 2000, when the utility's property was valued at $174,253,600. "Systemwide we pay somewhere in the neighborhood of $70 million in property taxes," says Norm Ross, who handles PacifiCorp's tax filings in 10 states. The company paid $14.5 million in Oregon taxes in 2000, but the figure dropped into the $13 million range last year when the cost of wholesale electricity skyrocketed. "Revenues dictate the value of the company along with earnings and cash flow," Ross says. "You can sell a lot of product for the price you paid for it, but it doesn't increase the value of the asset." Pacificorp is one of four utilities among the county's top-20 taxpayers, listed on the county's Web site. The top taxpayers for each jurisdiction from cities and schools to fire and urban-renewal districts appear. The broader the scope of the taxing district, for instance the Medford School District, the more likely corporations will dominate the list. In smaller locales, such as Butte Falls, you're likely to find a couple of former mayors as the top taxpayer. It might be considered a fitting irony that the Rogue Valley Mall, where students spend large sums on clothing and accessories, ranks second on the Medford School District's list of top taxpayers. The county collects all the real property and personal property (a company's non-real property). There are a total of 40 taxing districts listed on the county's Web site. While assessed valuation doesn't change, the tax rate within the various districts does. Some entities are spread throughout the county, others are on one tax lot. The state revenue department assesses most utilities and manufacturers with valuations exceeding $1 million, while the county takes in most everyone else. Eastman Kodak, a Rochester, N.Y., company whose massive White City plant is among the area's leading employers, was the No. 2 taxpayer in the county. The dry film imaging plant had an assessed valued of $86,529,720 and paid more than $1.319 million in taxes. Kodak was among 10 manufacturers on the list and saw its bill rise by more than $230,000 over 2000. That's primarily because the 37-year-old Kodak plant has just finished an expansion project and now has an all-time high of 425 employees "Our book value prior to investment was right around $70 million and I project that the number will grow to about $100 million by 2003 because of the major expansion," says plant manager Brian Melchori. "As we begin to employ some of the new equipment we'll start to depreciate the assets and the tax assessments will be based on that." Qwest Corp. of Denver, the county's primary local service telephone company, paid nearly $1.227 million in taxes. Rogue Valley Manor, a senior citizen community of 900 residents atop Barneburg Hill, was the top locally-based taxpayer in 2001, paying nearly $743,000. Although it's a nonprofit organization, the Manor's tax liability has accelerated the past decade, adding a second tower, a golf course and cottages. Its liability topped $640,000 in 2000. "None of us like to pay taxes, but it's something we've got to do," says administrator Kevin McLoughlin. "And it's important." Bear Creek Corp., a year-round and seasonal employer, maintains large tracts of farmland, which helps to explain why it paid $7,000 less in taxes than Rogue Valley Manor despite having $11 million more in valuation. Natural gas provider Avista Corp. of Spokane, Wash., was No. 6, paying $637,639 in taxes, while the owners of Rogue Valley Mall were No. 7 at $593,720. Gregory Greenfield & Associates of Atlanta, owner of 10 shopping malls in mid-sized markets, bought the 15-year-old mall three years ago. In 2000, the mall's owners paid $640,024 in tax and $593,720 last year. "We look at the current valuation compared to the price we paid for a property," says Jane Benefield, asset manager for Greenfield. "If the price we paid is lower than we currently are assessed we try to appeal. If it's higher we forecast more taxes. Usually, we're appealing taxes." Certaineed Corp., manufacturer of building materials; Boise Cascade, a wood products mill; and BOC Group Inc., manufacturer of specialized gas used in computer chips, complete the top 10. No. 11 is Medford Center's owner Haagen Alexander Properties. United Airlines, which doesn't own real property, but pays for its airplanes and equipment used at Rogue Valley International-Medford Airport, was taxed $274,087 in 2001. Shopping centers, including Costco Wholesale, occupy five spots in the city of Medford's top 10. The owners of the shopping centers where Fred Meyer is on both ends of Medford - Metropolitan Life Insurance Co. on the north and Texas Commerce Bank to the south - combine for more than $337,000 in taxes. Nonprofit health care providers Asante and Sisters of Providence paid $178,208 and $162,790 respectively. Merlin Fjarli, who has covered 76 acres along Sage Road and the surrounding area with metal warehouses, paid nearly $175,000 in taxes. The Mail Tribune paid $158,390 in 2001 property and personal property taxes, about $20,000 less than it did in 2000. Reach reporter Greg Stiles at 776-4463 or e-mail [email protected] Investment trust ranks high on landholder list Capital Automotive REIT doesn't roll off the lips of Southern Oregonians as regularly as Lithia Motors. Yet the McLean, Va., real estate investment trust is numbered among the city's larger landholders. According to Capital Automotive's Web site, it leases nine properties to Lithia Motors that were acquired in 1998, 1999 and 2001 for approximately $42.9 million. The properties total 46.3 acres in Medford and Grants Pass, California, Idaho and Texas. It lists a total of 19.97 acres in Medford Just the same, Lithia pays the property taxes on the land as part of its lease agreement. Lithia also owns about 160 acres off Crater Lake Highway northeast of the airport. Last year, the property's assessed value was $10,586,230 and Lithia's tax bill was $156,222. Real estate investment trusts popped up rapidly in the 1990s as vehicles to defer capital gains for people selling large amounts of land. REITs aren't taxed but to qualify under Internal Revenue Service guidelines, they must distribute 90 percent of their holdings to shareholders. "It's like a huge mutual fund focused on real estate," says Joe Connolly, Capital Automotive's vice president for western region acquisitions. He works out of Mission Viejo, Calif. "There are 220-plus REITs that are publicly traded. Some invest in golf courses, industrial property, office buildings or apartments. We've focused on automotive dealerships." Capital Automotive's $1.3 billion portfolio is invested in 274 properties - including former Lithia holdings in Medford; Grants Pass; Boise, Idaho; and Fresno, Calif. - in 28 states. The REIT's holdings include 10.7 million square-feet of buildings and 1,901 acres. Medford's Top 20 Taxpayers Taxpayer Assessed Value Total Tax 1. Rogue Valley Manor $47,569,160 $742,892 2. Qwest Corp. $46,111,4000 $669,289 3. Rogue Valley Mall $40,232,590 $593,720 4. Medford Center $22,766,970 $335,977 5. Pacificorp $23,075,300 $335,217 6. United Airlines $18,928,300 $274,087 7. Avista Corp. $17,959,000 $260,261 8. KOGAP Enterprises $13,499,370 $232,601 9. Sabroso. Company $13,742,980 $199,267 10. Bear Creek Shopping Ctr. $12,625,880 $186,323 11. Metropolitan Life Ins. Co. $12,113,280 $178,758 12. Asante $11,954,340 $178,208 13. Merlin Fjarli $11,871,710 $174,939 14. Sisters of Providence $11,041,160 $162,790 15. Texas Commerce Bank $10,745,460 $158,573 16. The Mail Tribune Inc. $10,934,110 $158,390 17. Capital Automotive REIT $10,586,230 $156,222 18. TLC Properties USA $9,692,830 $143,039 19. Costco Wholesale Corp. $9,189,350 $135,064 20. Fountain Plaza LLC $8,885,670 $129,606 Notes - Bear Creek Shopping Center is owned by Pan Pacific Retail Properties Inc. of Vista, Calif. Metropolitan Life Insurance Co. is the party of record for the North Medford Fred Meyer shopping center. Texas Commerce Bank is the party of record for the South Gateway shopping center. Taxpayer Assessed Value Total Tax 1. Pacificorp $161,581,600 $1,813,053 2. Eastman Kodak $88,529,720 $1,319,218 3. Qwest Corp .$87,382,760 $1,226,738 4. Rogue Valley Manor $47,569,160 $742,892 5. Bear Creek Corp. $58,628,190 $735,088 6. Avista Corp $45,694,500 $637,369 7. Rogue Valley Mall $40,232,590 $593,720 8. Certainteed Corp. $40,902,780 $585,491 9. Boise Cascade Corp. $40,265,760 $558,558 10. BOC Group Inc. $28,924,640 $416,790 11. Medford Center $22,766,970 $335,977 12. BioMass One $20,917,300 $331,144 13. Georgia-Pacific Resins $20,255,150 $308,733 14. Praegitzer Industries Inc. $19,719,100 $282,242 15. United Airlines $18,928,300 $274,087 16. Serrapine $22,934,520 $261,791 17. United Telephone NW $17,391,870 $237,325 18. KOGAP Enterprise Inc .$13,600,100 $233,847 19. Boise Cascade Corp .$11,326,620 $231,851 20. Financial Pacific Inc. $12,687,210 $207,544 Notes - Rogue Valley Mall is owned by Gregory Greenfield & Associates of Atlanta, Ga. Medford Center is owned by Alexander Haagen Properties of Manhattan Beach, Calif. Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.