Holmes, Thell testify at hearing for utility tax abatement legislation

Carlton County commissioner Mark Thell and assessor Kyle Holmes spoke to the Carlton County Board of Commissioners during Tuesday's meeting about their appearance at a hearing at the State Legislature regarding the issue of repayment to utility companies for years they were deemed as overtaxed on their properties.

The two men testified in support of a bill authored by State Rep. Mike Sundin that would make the State Commissioner of Revenue fully responsible for any paybacks if litigation goes against the State. As proposed, the bill would have the state cover any back-payment of property taxes for utilities, pipelines, and other energy transmission entities as determined by the Minnesota Tax Courts.

"Prospects do look hopeful," Thell said. "Several counties and local governments testified for the [state payment]. Several utilities also testified in support. This is not a partisan issue and the message for action was heard."

Holmes pointed out that the impact of an anticipated Enbridge case ruling could reach more than $100 million on its own for the 13 counties impacted to this point.

Clearwater County could be hit particularly hard because 70 percent of its taxable base comes from utilities and pipelines in their taxing district.

Holmes also warned that a couple townships in Carlton County could go bankrupt if the initial tax court ruling were upheld and local governments got no State solution or help.

He added that catching up with past overcharges on utilities is only half of the problem.

"Future reductions on the tax liability of utilities will cause a shift in the tax burden to all the other property taxpayers in the taxing district," Holmes said, explaining that he was talking worst case scenario regarding all the utility and pipeline and railroad petitions that are currently in appeal against the Commissioner of Revenue. "The impact could be severe in my estimation. The state of Minnesota will soon realize that a cost to the state budget would be at least a half billion dollars."

A day later, news broke that the Minnesota Supreme Court reversed the previous tax court opinion on Enbridge Energy and remanded it back to the tax court.

While he was still digesting the news on Wednesday afternoon, Holmes said it was good news, but worried there could be bad consequences.

"This is a good ruling in the sense that we have hope once again that the tax court will arrive at a more appropriate value under a cost approach," Holmes told the Pine Knot News Wednesday.

On the flip side, he said the ruling will push the case out at least another year, and it's possible the tax court might end up awarding Enbridge a higher property tax liability than the previous court ruling.

He added that the decision will likely affect all the other cases involving utilities appealing their property tax bills in Minnesota, causing further delay.

EMS awards

At the beginning of the Board of Commissioners meeting on Feb. 12, the Carlton County Emergency Medical Service (EMS) council gave their annual awards.

Cars Towing of Cloquet was honored with the Friend of EMS Award.

"They are always willing to give us a helping hand, from auto wrecks to helping get our trucks out of the ditch," read Chris Cassandro, president of the Carlton County EMS council and a leader in the Blackhoof fire department. "They also are willing to support department fundraisers with donations."

Carlton fire chief Derek Wolf nominated the Carlton County dispatch office as the Carlton County EMS Unit of the Year.

"The Carlton County dispatch office is an essential part of emergency services and rarely receives the recognition they deserve," Wolf read. "It is a honor to recognize their outstanding performance and excellence in public safety."

Cassandro nominated Royce Lattu, the fire chief of the Blackhoof fire department, for the Person of the Year Award. Lattu has spent 20 years in firefighting and EMS in Carlton County.

"Royce is a very talented and educated firefighter that can run a fire scene with perfect balance of foresight and execution," Cassandro wrote. "Royce, a gifted grant writer, has provided our Blackhoof department witn $150,000 in grant monies."

Dean Wolf of Carlton Fire and Ambulance Service was honored with the Carlton County EMS Lifetime Achievement Award. Cassandro spoke of Wolf's volunteering with Carlton Fire and

Ambulance in 1978 in roles as EMT, firefighter, medical officer, and CPR instructor. Ebony DeLovely read the nomination, noting that Dean has been "a phenomenal mentor, teaching many new EMTs everything from making a good first impression, patient assessment, scene management, treatment, and intervention. Dean can never be repaid for the knowledge and experience he has passed on to others."