AUGUSTA — Walmart’s appeal to the State Board of Property Tax Review after the Town of Thomaston denied a property tax abatement request failed Dec. 15 following two days of hearings in Augusta. 

Wal-Mart Real Estate Business Trust had petitioned the state board after the Thomaston Board of Assessors denied an abatement request.

It took several days of hearings, starting last August, where Attorney Paul Gibbons argued on behalf of Thomaston, but on Thursday, Dec, 15, the board concluded the process with its vote to deny Walmart’s appeal. 

Specifically, Walmart had appealed its property tax assessment to the State Board of Property Tax Review for the years April 1, 2017 and April 1, 2018.

The 15-member board hears appeals from denials of tax abatements by assessors or local boards of assessment review, concerning non-residential property with an municipal assessed valuation of $1 million more more; tree growth, farmland, open space, mine site and working waterfront classified property, as well as municipalities disputing annual equalized state valuations.

Thomaston had assessed WalMart for the property in Thomaston for April 1, 2017 in the amount of $15,889.323 and for the tax year April 1, 2018 in the amount of $15,434,000.

Thomaston’s appraiser Stephen Traub appraised the property for $18 million for both of those tax years.

But Walmart had retained appraiser Gregory Curtis of Newmark Knight Frank, based in Boston, who appraised the Thomaston Walmart property for both of these tax years in the amount of $7,400,000, said Gibbons.

“If WalMart was successful in its appeal, the Town of Thomaston would have lost $164,000 for each tax year,” he said.

To Board of Property Review member Kerry Leichtman, “it was an interesting case,” which initially came before the board in August.

Leichtman is the assessor for Camden, Rockland and Rockport.

In 2021, Gibbons submitted to the board Thomaston’s rationale for denying the abatement request, and said Walmart had: “failed to meet its burden of demonstrating by credible evidence that the assessment of the Town of Thomaston is manifestly wrong. Accordingly, its request for an abatement should be rejected by the Board.”

Gibbons had questioned in his 36-page memorandum (see attached PDF) how Walmart could claim that its 147,500-square-foot retail store on 30.22 acres be worthy, “only $7.4 million”, when the town’s independent appraiser determined that its fair market value for the dates in question was approximately $18 million.

“The answer is simple: Rather than valuing the property in its current condition and existing use, Walmart asks the town to treat this story differently than the town treats all other properties – as if it were vacant, obsolete and idle, awaiting sale after closure,” wrote Gibbons.

He stated that all taxpayers, by law, are to be taxed equally and fairly.

“If large retail stores were taxed differently than other properties, the Town would be unfair in its treatment of other property owners, whose properties are taxed based on their current condition and use on April 1, and other property owners would also be impacted unfairly since they would then have to bear a greater share of the tax burden because Walmart’s assessment would be substantially lower if it were assessed as if closed and vacant.”

In 2021, the municipal assessment of Walmart was $21 million and the company’s Thomaston property tax bill was $458,220.

Reach Editorial Director Lynda Clancy at lyndaclancy@penbaypilot.com