The city of Madison would pay Walgreen Drug Stores $495,000 in interest-free property tax refunds under the terms of a proposed settlement presented to the City Council on Tuesday.
The proposed settlement comes after the Wisconsin Supreme Court ruled last summer the city had improperly assessed the property value of two Madison stores. The city reimbursed Walgreens about $248,000 for tax years 2003 and 2004 after that case. This new settlement would reimburse the company for extra taxes it paid from 2005 through 2008. Walgreens’ challenge of its 2009 assessment remains unsettled.
About $181,000 of the $495,000 would come out of the city’s operating budget. The remaining $314,000 would be returned to the city in the coming year from the state and county governments as well as Madison Area Technical College and the Madison Metropolitan School District, city comptroller Dean Brasser said.