[B]URLINGTON — The city has reached a settlement with South Burlington in a long dispute over property tax payments on Burlington International Airport, which belongs to Burlington but is located in the neighboring city.
The deal more than halves the Queen City’s property tax bill for the airport and surrounding properties.
The dispute began in 2012 after South Burlington increased its assessment of the airport property. Burlington’s appeals eventually locked the two municipalities in a court battle.
Burlington will pay a combined $717,000 for the most recent tax year (2015-2016), with $238,000 going to South Burlington and the rest going toward state education property taxes. Before the settlement, the Queen City’s tax bill for that year was $1.55 million.
South Burlington anticipated total property tax revenue of $13.9 million in the current fiscal year, according to a budget document on the city’s website.
A new assessment dropped the value of Burlington’s properties in South Burlington to $52 million, from $77 million.
Burlington will receive a credit of $59,000 for the next two years for dropping its overpayment claims in court.
The two cities have also agreed that the $52 million valuation will serve as a baseline until 2028, with adjustments for new property acquisitions by Burlington or changes to how airport buildings are used.
The Burlington and South Burlington city councils both approved the settlement at their respective meetings Monday night.
“This was an enormously complex property tax case that involved a variety of land uses and narrowly written statutes that apply to airports and property owned by one community but located in another,” said Helen Riehle, chair of the South Burlington City Council, in a statement.
Burlington Mayor Miro Weinberger said the deal would be widely beneficial. “This settlement is good for the traveling public and good for the airport. It represents another important step in our multiyear effort to restore financial stability to the Burlington International Airport,” Weinberger said.
Burlington International Airport’s Director of Aviation Gene Richards also praised the settlement.
“Importantly, the settlement establishes a clear methodology for future assessments that should help avoid tax disputes between the airport and South Burlington,” Richards said in a statement.
