Another story is unfolding concerning questions about businesses paying its fair share of taxes. This time its Entergy Louisiana and concerns its Waterford 3 nuclear plant in Taft, Louisiana. (St Charles Parish)
In an article by Matt Scallan published in the Times Picayune on November 27 it was pointed out that St Charles Parish assessor Clyde Gisclair has filed a flurry of lawsuits against the Louisiana Tax Commission alleging Entergy is paying far too little tax on the Waterford 3 plant. Gisclair thinks Entergy's properties valuation is low as a whole and that Waterford 3 assessed value should be greater than what it presently is. Its present assessed value by the Commission is $118,405,280.00 and that the Parish's revenue generated by Waterford 3 is $13,532,539.00.
The article points out the Waterford 3 plant was put in operation in 1985 with a fair market value of $2.8 billion. The plant was exempt from property tax for the first 10 years till 1996 when its fair market value was reduced to $735,415,756.00, a 74% reduction and came on the St Charles Parish tax roll for the first time. The fair market value has been depreciating approximately $6 million each year since 1996 and that seems to be the basis of claim that the plant is under valued.
Entergy said should the courts decide the current process for valuing electric utility property must legally change, any resulting tax increase would wind up being paid by its customers through utility bills. Like as if they don't do that already.
The real story here is fair taxation for all. The 10 years exemption and the large drop in the fair market value of Waterford 3 indicates that Entergy was and is being subsidized by home owners and others who paid their property taxes when due. Businesses pass on the taxes they pay to their customers period. They do so in good times and bad times and when it comes to Entergy they also pass along the fuel surcharge to their customers even though those charges in many bills exceed the charge for the utility actually used.
The Tax Commission which is appointed by the governor sets the value for so called "public service" properties. However, Mr. Gisclair who is an assessor knows a little about the value of property. Fair taxation? You will not find it in Louisiana.
