GlobalFoundries appeals Malta’s $400M assessment

GlobalFoundries is challenging the $400 million assessment set for the coming year on its Fab 8 computer chip plant.

Tuesday was the deadline to appeal the 2011-2012 assessment, and company spokesman Travis Bullard said the necessary paperwork to appeal was filed with the town assessor’s office Monday.

The company also challenged its 2010-2011 assessment, which was $160 million. That case is currently pending in state Supreme Court.

Fab 8 is currently under construction, so town assessor Susan Otis has assessed it based on the cost of construction.

Through March 1, GlobalFoundries officials said it has spent about $700 million on the factory, which is due to open in 2012 with more than 1,200 employees.

Otis has said she used the spending figure and other factors in setting this year’s assessment at $400 million, and that the town is prepared to defend the assessment.

Bullard said the company believes the property should be assessed at 30 percent of what’s been spent on construction materials — or roughly $210 million for the coming year.

“The information we have is based on how these things are assessed globally,” he said.

At either number, the GlobalFoundries plant would be by far the largest taxpayer in Malta and the Ballston Spa School District, and for the school district in particular, more than $1 million in tax revenue is at stake.

The Fab 8 plant is generally described as costing $4.6 billion, but much of that cost is for the complex fabrication tools that will be inside the plant, which are not subject to local property tax.

Bullard said the company is awaiting a response from the town. He doesn’t yet know if there will be another court challenge.

“We’ll have to see if the assessment is changed. If not, we’ll decide our next step,” he said.

GlobalFoundries this week began moving employees into the administrative building at Fab 8, and is expected to start installing the manufacturing tools in June.