EDWARDSVILLE - After negotiations, a historic tax agreement has been reached governing a Wood River refinery, a key component of our local economy and one of the largest refineries in the country. This settlement, which has been agreed to by all parties, will bring financial predictability to the refinery as well as multiple taxing bodies — such as schools, fire departments and road districts — while avoiding litigation expenses.
Under the agreement, the WRB Refinery’s assessed property valuation will increase from $447.9 million in 2023 to $461.5 million in 2027.
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“It is a testament to the good faith of all those involved that we were able to secure the largest tax agreement in our county’s history through negotiation rather than continued expensive litigation,” Haine said. “I’m hopeful that the respectful and cooperative process that produced this agreement will further cement Madison County’s reputation as a place which recognizes the need for good schools and community infrastructure, as well as the desire to create a business-friendly tax environment, encouraging future investment in our communities by businesses both large and small.”
Approximately a decade ago, the valuation of the refinery was the subject of an extensive tax and valuation dispute, resulting in years of litigation and legal expenses. This litigation was eventually resolved through a settlement agreement, which established the refinery’s assessments and taxes from 2014 through 2017. That settlement lapsed after 2017 and was not renewed. No further litigation or dispute was filed until the economic disruptions caused by the COVID-19 pandemic, at which point the issue of the refinery’s assessed value resurfaced. In January 2021, WRB appealed its assessed value, and various affected school districts intervened. The issue developed to the point where the County Treasurer — represented, pursuant to statute, by the State’s Attorney — became a direct party
In an attempt to reach a settlement and avoid extensive litigation, Haine’s office convened a series of negotiations with the affected parties. In July, the negotiations resulted in a proposed settlement that covers the refinery’s assessment through 2027. That settlement has now been approved by all relevant taxing bodies, and will be submitted to the Circuit Court for final approval.
Terms of the settlement include:
• Tax Payments Increase: For tax years 2023 through 2027, the total refinery property tax will increase from $26,682,425 (in 2023) to $30,692,655 (in 2027). For comparison, the last uncontested year of value was 2020, and the total refinery tax payment was $24,223,544.
• Additional Payment in 2024: The agreement calls for the total refinery 2023 taxes (payable in 2024) to be $26,682,425. The refinery’s 2023 taxes as billed were slightly lower, totaling $26,576,067.83. The difference, $106,357.17, will be paid to the taxing bodies on a pro rata basis shortly after the effective date of the agreement.
• Assessed Value Increases: The refinery’s assessed value will increase each year, from $447.9 million in 2023 to $461.5 million in 2027. This is an increase of more than $100 million from the previous agreement, which lapsed in 2017 and did not involve any increase in the assessed value of the WRB Refinery over its entire term.
• Litigation Dismissed: All pending litigation before the Property Tax Appeal Board, the Madison County Circuit Court, and the Illinois Department of Revenue for assessment years 2021 through 2023 will be dismissed, and no tax refunds will have to be paid.
The multiple taxing bodies that benefit from the refinery’s property assessment include:
• Madison County
• Roxana CUSD #1
• Lewis and Clark Community College District
• Hartford-Wood River SD #15
• East Alton-Wood River HSD #14
• Village of Roxana
• Roxana Community Park District
Chouteau Township Road and Bridge District
• Chouteau Township
• St. Louis Regional Airport
• South Roxana Fire Protection District
• Wood River Township
• Wood River Township Road and Bridge District
• Village of Hartford
• Hartford Library District
• Village of South Roxana
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