Bunge faces tax questions

Published 12:00 am Friday, March 19, 2004

By LEONARD GRAY – Managing Editor

DESTREHAN – Where does the grain go? St. Charles Parish Assessor Clyde “Rock” Gisclair wants to know – and by the way, the ad valorem taxes he says is due from Bunge Corportation.

Bunge built a $30 million grain transfer facility and went to the Louisiana Board of Commerce and Industry to seek a 5-year ad valorem tax exemption, based on the presentation that the facility engaged in manufacturing.

The facility was to transfer soybeans to a soybean processing plant. However, according to Gisclair’s attorney, William Edelman, the transfer facility is 18 times the capacity of the soy processing plant, far more than necessary for the claimed function.

If, as Gisclair believes, the transfer facility is used to put the soybeans in storage, it is not entitled to the tax exemption. Gisclair filed a suit against the Board in August 2003, alleging the Board’s action in granting the tex exemption was unconstitutional.

The Board was due to meet with Gisclair to review the matter, however, according to Edelman, Bunge then was granted an injuction against the Baord to keep them from meeting with Gisclair on the subject.

No hearing on Gisclair’s suit can progress without going through the discovery phase of the pre-trial investigation, Edelman added. So, no hearing date is set.

“We’re trying to push the case as fast as possible,” Edelman noted.

Bunge attorney Robert Rieger Jr. stated he was not allowed to speak on the matter and referred to C.J. Jones of Bunge.

Jones is out of town and unavailable for comment.

An estimate from Gisclair’s office is that St. Charles Parish’s taxing authorities, including the parish government, sheriff’s office and school district, are losing some $384,372 per year.