Wheelabrator settles tax assessment lawsuit with Connecticut city

Wheelabrator, headquartered in Portsmouth, New Hampshire, and the city of Bridgeport, Connecticut, reached a settlement in a  tax appeal lawsuit stemming from a 2007 list, a report from the Connecticut Post says. The settlement will give Wheelabrator more than $30 million in future tax credits.

The credits represent refunds based on revised assessments over eight years, the report says. They will count toward tax bills over the next decade, reaching a peak of $3.8 million in 2022 and decreasing to $766,000 in 2030.

According to the report, the company claimed Bridgeport determined the waste-to-energy facility’s assessment based on what would be needed for a gap in its budget. The city’s value for the plant was more than twice the amount an independent assessor said it was worth. The company also claimed the city had been overcharging the plant based on its assessment.

The state’s Supreme Court ordered a new trial in 2016 to determine what the plant’s value is, the report says.

If the two parties did not settle, a ruling in favor of Wheelabrator could have cost Bridgeport $60 million, the report says.

Wheelabrator Bridgeport has been in business with the city for almost 30 years. Both parties say the settlement is fair, the report says, and are satisfied with the outcome.