“They obviously had an idea that the property wasn’t properly appraised, and they appealed,” Burgiss said.
As it stands, Burgess said, the negotiated settlement reduces the company’s valuation by just $14.1 million, which equates to a tax cut of about $100,000, although the settlement also eliminated a $302,000 discovery penalty the county imposed during the process.
“The tax administration is very pleased with this outcome and we believe this resolution is fair and reasonable,” Burgiss said in his memo. Commenting to a reporter on the settlement, Burgiss said discovery penalties are imposed when tax assessors find assets that are either unlisted or rated lower than what the county believes should apply.
Caterpillar officials did not comment on the settlement.
Caterpillar began production at its Winston-Salem plant in 2011, making axles and wheels for the company’s largest mining trucks. From 2016, the company moved production to local factory rail equipment through its subsidiary, Progress Rail.
Along the way, Caterpillar renegotiated the financial incentives that had brought its business into Forsyth County, leaving it open to collecting incentives despite not achieving the number of jobs promised by the company. .