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Last Updated: Wednesday, June 27, 2007 1:52 PM CDT
City wants Walgreens lawsuit dismissed

by Heather Schaefer - Daily News Staff - hschaefer@rhinelanderdailynews.com

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The city of Rhinelander is asking that a lawsuit filed against it by Walgreen Co. be dismissed.

According to court documents, the city claims another company, MRED Associates of Deerfield, Illinois actually owns the land on which the Rhinelander Walgreens store sits, therefore Walgreen Co. is not “an aggrieved party” and cannot file a claim of excessive tax assessment.

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In May, the retail store known for its pharmacy and cosmetics filed suit against the city alleging it is paying too much in taxes to the city of Rhinelander. Walgreen Co. claimed the store was assessed incorrectly and as a result the store ended up paying more than $30,000 in excess taxes.

According to the complaint, the Rhinelander Walgreens property was deemed to be worth $3,996,900 in 2006, and the land was assessed at a rate of $18.65439 per $1,000 of assessed value, which meant the store was responsible for paying $74,559.74 in taxes.

Walgreen Co. believes the property should have been valued at $2,038,563, more than a million dollars less than the city's determination. According to Walgreen Company's calculations, it should have paid only $38,028.15 in taxes in 2006 and it wants a refund.

In its formal answer to the complaint, the city stood by all of its numbers and disputed Walgreens' claim that the assessment differs from the assessments of other similar properties in the city.

Walgreen Co. is seeking a refund of the alleged excess taxes while the city is asking for the suit to be dismissed and for its litigation costs to be covered by Walgreens.

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