07-04-1997Local industry, take note.
The days of blanket approval for ongoing tax abatement may be ending soon.
For years, Kosciusko County Council has provided a rubber stamp form of approval on annual abatement updates.
Abatements allow industry to expand and avoid paying taxes on the improvements for a set time. When abatement is initially sought, the company outlines plans for improvements and the number of additional jobs linked to the improvements.
But each year, council rubber stamps the updates as long as required forms are correctly filled out.
In the future though, council will begin documenting those improvements through a set of procedures proposed by county assessor Sue Ann Mitchell.
According to Mitchell, two employees within her office who already assess commercial and industrial property will check on improvements before the updated paperwork is approved each year during the abatement period.
The inspections would focus not only on the building, but equipment and new employees hired as a result.
Council would act on recommendations from Mitchell’s employees on whether a special hearing is needed to determine whether the company is in compliance, said council president Jim Tranter.
“There’s a couple (companies) in the county we suspect asked for abatements and got them” but are not living up to the expectations, Tranter said.
He declined to identify the companies, but said they have been notified and will be reviewed.
Some companies have multiple abatements. The total amount of assessed value set aside as a result of abatements countywide is about $18 million, which represents a little more than $100,000 in taxes not collected, Mitchell said.
Not enforcing compliance of the abatements is unfair to taxpayers who pick up the extra tax load, she said.
“I’m proud they’re willing to take the bull by the horns because it’s probably not going to be a real popular decision with the businesses that applied,” Mitchell said.
In other matters, council:
• Re-appointed Irv Lindemuth to another term on the Warsaw Community Public Library Board. The vote was 5-1. Lewis Bertsch voted against.
• Approved spending $4,000 for a consultant who will work with the assessor’s office in processing about 50 appeals made by property owners. Mitchell said the consultant will provide important training for her staff.
• Approved hiring J.D. Geiger as the supervisor of weights and measures. Geiger will be paid $11,500 for this year and a proposed $15,500 for 1998.
• The county budget will be reviewed on three consecutive nights beginning Aug. 25. Review of budgets from outside agencies the county subsidizes will be conducted at 6 p.m. Aug. 7.