BLOOMINGTON (WEEK) - Several McLean County taxing bodies are being asked to extend a 10-year old agreement with State Farm Insurance to avoid future tax disputes over the value of the company's many properties.
Wednesday, the McLean County Board's finance committee voted to unanimously to extend the deal another five years. The county board is expected to vote on the deal in two weeks.
The agreement locks in the assessed value for dozens of State Farm properties, which helps determine how much the company pays in property taxes. State Farm is also willing to accept annual property tax increases of up to 1%.
The agreement has worked well, according to a staff report to Assistant State' Attorney Jessica Woods in her report to the county board.
"It provided State Farm with stability in the amount of property taxes it pays and gave the taxing bodies certainty with respect to the amounts that will be paid," said Woods.
The agreed-to assessed value for corporate south headquarters is about $93.56 million, and State Farm main headquarters is valued at $39.4 million for tax purposes.
The District 87 School Board approved the agreement at its June 24 meeting. Eight other taxing bodies also have to sign off on the deal.