Town offers lucrative tax relief

Waterford settlement with Momentive would end legal challenge

Only a week after announcing it wants to cut 300 jobs at its silicones factory, Momentive Performance Materials is being offered a lucrative tax break and a $5 million tax refund by the town of Waterford and the Waterford-halfmoon School District.

The deal, which is subject to a public hearing scheduled for Tuesday night at Town Hall, would settle a legal challenge mounted by Momentive to slash the assessed value of its property from $195 million to $54 million.

A property’s assessed value is used to calculate its tax bill.

Momentive had also sought a $12 million refund of past taxes it paid to the town and the county as well as the school district.

In order to minimize the risk of losing in court, the town agreed to a settlement that sets Momentive’s assessment at $95 million and provides the company with a $5 million tax refund, of which $3.5 million will be paid by the school district.

Town officials admitted that the tax refund and the loss of future tax revenue will “negatively impact” the town’s 2021 budget, although the agreement would bar Momentive from challenging its assessment for five years. Many corporations challenge their tax assessment each year.

Momentive employs about 1,000 people at its Waterford factory.

The company says it is planning upgrades to the plant as it restructures its business to focus on high-margin products.

Momentive must negotiate its planned job cuts with its unions before the layoffs start.