U. S. Steel, City of Gary and Lake County Reach Agreement on Property Tax Settlement
United States Steel Corporation (NYSE: X) announced today that it has reached an agreement with Lake County and the City of Gary to settle all claims for personal property tax filings for the years 1998 through and including 2002. This settlement agreement is currently under review by the state Attorney General's office on behalf of the Indiana Department of Local Government Finance (DLGF).
As a part of the settlement, U. S. Steel has agreed to pay Lake County $44 million to settle all claims; to cover the cost of certain attorney and consulting fees; and to pay a fee for an expeditious resolution of all claims. In addition, U. S. Steel has agreed to invest no less than $150 million in its Lake County operations over a period of four years or pay 7.5 percent of any shortfall from the $150 million to Lake County. U. S. Steel has the option to contribute to a Lake County jobs training fund to meet a portion of its investment commitment. U. S. Steel will also relinquish tax refund claims totaling $65 million for the years 1994 to 1996 and 1999. U. S. Steel has also agreed to work with the City of Gary to redevelop and donate to the City approximately 200 acres of land on the west end of the plant pending the evaluation and resolution of certain environmental and title transfer issues.
"This settlement is the direct result of the cooperative atmosphere created by state and county officials and the mayor of the City of Gary," said George Babcoke, general manager of Gary Works. "It helps all taxpayers at a time when we need it most, while recognizing that Gary Works must be globally competitive in order to continue providing good jobs and other economic benefits to the community."
For the settlement to become final, the DLGF must join the agreement after the Attorney General's review, and the Calumet Township Tax Assessor, who has declined to join in the settlement, must become a party to the agreement or otherwise be dismissed as a party from all appeals. In accordance with accounting standards, the company noted that income effects resulting from differences between the settlement and accrued liabilities would not be recognized until the settlement is final.
Under the agreement all local governments, taxing jurisdictions and the DLGF would dismiss all claims for personal property taxes as well as related interest and penalties for the years in question.
For more information about U. S. Steel, visit www.ussteel.com .
SOURCE: United States Steel Corporation
CONTACT: John Armstrong of United States Steel Corporation,
Web site: http://www.ussteel.com/
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