Bunge-Ergon Vicksburg Inc. is asking for a property tax exemption worth $67,748 on the ethanol it ships out of state, but it is unclear if the company’s request will be granted by both the city and Warren County officials.

The company’s $100 million ethanol plant, built at the Port of Vicksburg, went into operation last fall without public incentives. It has an estimated output of 54 million gallons of ethanol per year.

Under state law, tax exemptions are allowed as incentives for job creation and retention and large companies in the city and county are commonly granted a tax exemption for making capital improvements or expansions to their facilities. The exemption Bunge-Ergon is applying for in this case, known as the “free port tax exemption,” would allow the company to forgo paying taxes on $3,683,702 worth of inventory that is transported out of Mississippi.

The Vicksburg Board of Mayor and Aldermen accepted the exemption application on Monday, and the company has already submitted one to the county. Warren County Board of Supervisors President Richard George said the supervisors will discuss the issue on Thursday. However, he noted free port tax exemptions are rarely — if ever — approved by the supervisors.

“I don’t believe we have ever approved one,” he said. “Mainly because it’s akin to an inventory tax, not a personal property tax. Once you start exempting inventory, where do you stop? In this day and time, governments are not in a position to be giving up revenue.”

Mayor Laurence Leyens said he would like to support anything that helps Bunge-Ergon. However, he said he’s not yet been provided enough information on the free port tax exemption from the city’s representative on the Warren County Port Commission, John Ferguson, to make a decision on the exemption at this point.

“I am happy to provide any support to Ergon because they’ve been a phenomenal corporate citizen. Ergon has been an amazing employer in our community and has had some of the highest wages and best job retention,” he said. “But on this request, it’s difficult to know because we have not been provided a rational basis on which to do it. I’m all for offering an exemption if we’ve got a rational reason to do it, but we’ve not been given the information.”  

Ergon, the Jackson-based parent company of Bunge, edoperates in multiple divisions and also has an oil refinery at the E.W. Haining Industrial Center. It is asking for a tax exemption on 58 percent of its total inventory of $6,351,210, said City Attorney Nancy Thomas.

The city would forgo $19,825.67, while the county — which collects taxes for the school district — would forgo $47,923.14. Warren County Tax Assessor Ricky Holland said he’s never known of an ad valorem tax application being approved by one municipal board and denied by another, but said the tax break could be divided if there’s a split decision.

The city board earlier this year accepted an application for property tax exemptions from Cooper Lighting and Anderson-Tully Company for added machinery and other capital improvements. Anderson-Tully closed a mill on Levee Street at the end of 2008, which coincided with the completion of an $8 million improvement project at its facilities on North Washington Street.

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On the agenda

Meeting Monday, the Vicksburg Board of Mayor and Aldermen:

• Congratulated members of the Porters Chapel Academy baseball team and proclaimed Monday Porters Chapel Academy Baseball Team Class A State Champions Day.

• Witness the oath of office and appointed Ryan Williamson to the police department.

• Approved minutes from March 26, 31 and April 6.

• Accepted a certificate from the City of Vicksburg Election Commission for the May 5 primary election.

• Received sealed bids for service and fire department uniforms from Mid South Uniform and Supply Inc. of Jackson and for vehicle accessories from Fleet Safety Equipment Inc. of Memphis and Roper Supply of Picayune, Miss. For pebble lime, Carmeuse Natural Chemical of Pittsburgh, Pa., bid $186.10 per ton, and Falco Lime of Vicksburg bid $125.74 per ton.

• Received a bid of $150 for surplus property at 805 2nd North St. from Orlando S. Jones, and also the following bids for surplus property at 1110 Grammar St.: William Nelson, $205; Virginia Hearn, $300; Robert McBride, $250; and Natalie Hayes, $100.

• Accepted a letter establishing a special assessment costing $323.90, and adopted a resolution for cutting and clearing property at 1310 Prospect Street, owned by US Bank National Associates.

• Discussed dilapidated building and overgrown lot codes with Director of Buildings and Inspections Victor Gray-Lewis, and authorized him to proceed to cut, clean and/or demolish buildings at the following properties: 1031 Buck St., 2047 Sky Farm Ave., 234 North Locust St., 1104 Third North St., 512 Feld St. and 2826 Arcadia St. A 90-day extension was granted to the owner of property at 725 Farmer St.

• Approved a request for $500 in advertising from organizers of the Rollin’ on the River Siege of Leukemia Benefit Concert.

In executive session, the board:

• Approved one youth hire for the summer in the court services department and three youth summer hires in the recreation department.

• Discussed one personnel matter.

The board is scheduled to meet next at 10 a.m. June 10 in room 109 of the City Hall Annex, 1415 Walnut St.

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Contact Steve Sanoski at ssanoski@vicksburgpost.com