Exxon Mobil backs off from property tax dispute with HCAD

Exxon Mobil Houston Campus, Tuesday, May 17, 2016, in The Woodlands, Texas. Exxon Mobil Houston Campus, Tuesday, May 17, 2016, in The Woodlands, Texas. Photo: Gary Coronado, Houston Chronicle Photo: Gary Coronado, Houston Chronicle Image 1 of / 11 Caption Close Exxon Mobil backs off from property tax dispute with HCAD 1 / 11 Back to Gallery

Exxon Mobil Corp. has filed a motion to dismiss a lawsuit it filed against the Harris County Appraisal District disputing a nearly $40 million property tax bill.

The Irving-based oil giant, which occupies a sprawling new corporate campus just south of The Woodlands, filed suit against the county appraisal district last fall, claiming the actual value of the property was "substantially below" what was assessed -- $1.04 billion. It did not provide its own assessment of the property.

Palmetto Transoceanic, the entity under which the campus is owned, filed for a "Notice of Nonsuit" on Aug. 30 -- essentially seeking a dismissal -- one day before it was expected to hand over documents containing financial information about the acquisition of the property and the construction of the campus. The district court judge presiding over the case granted and signed the order.

The tax bill, which Exxon Mobil had already paid but was continuing to dispute, was for 2015.

Spokeswoman Margaret Ross responded to the dismissal in an email Thursday: "The district assesses property value annually and we would prefer to resolve these issues directly and avoid legal action that could extend the time for resolution," she said.

The Exxon Mobil campus, west of Interstate 45 at the Grand Parkway, includes 14 office buildings, three parking garages, a central utility plant and several additional buildings to support the company's operations. It is listed at 23125 North Freeway on the tax rolls.

HCAD has released its 2016 assessment for the property: $1.13 billion -- an 8.8 percent increase from last year.