EAST PROVIDENCE – The city and ExxonMobil Oil Corp. have entered into a tax treaty on a large swath of property owned by the company along Wampanoag Trail that has been the focus of property assessment appeals for 13 years.
The treaty, authorized by state legislation approved by the General Assembly and signed by Gov. Daniel J. McKee, includes the adjustment of tax assessments, tax credits and governs the future sale and development of the property.
According to a news release from the city, the treaty:
- Reduces the property assessment from $39.4 million to $29 million for a 10-year period, from December 2020 to December 2029, with the flexibility for the city to increase the assessment, if warranted.
- Allows ExxonMobil to be credited for the eight years it was previously overassessed, with the credit to be put toward the company’s tax bills from 2020 to 2029. That credit will reduce ExxonMobil’s tax bill by $460,000 annually for the next 10 years.
- Stipulates that ExxonMobil will put 80 acres of land to the east of the Citizens Bank Operations Center on Citizens Drive up for sale, as well as an additional 40.5 acres east of Wampanoag Trail.
- Decreases the city’s tax revenue for ExxonMobil from $997,748 to $734,570 in the next year.
Without the treaty agreement, the city said it faced a potential loss of $5.8 million.
“This settlement was in the best short- and long-term interest of the city given the length of time the case had been pending and represents a fair compromise between the city of East Providence and one of its largest taxpayers,” East Providence Solicitor Michael Marcello said in a statement.
