County To Reimburse Donnelley In Tax Credits After Assessment Error
July 28, 2016 at 4:25 p.m.
After several hearings, appeals and negotiations, the Kosciusko County Commissioners approved an agreement Tuesday with R.R. Donnelley & Sons Co. in which the county will give Donnelley back almost half a million dollars in tax credits over a two-year period.
Donnelley also agreed to pre-pay a portion of its taxes for two years.
In 1997, Wayne Township Assessor Kristy Mayer discovered personal property at Donnelley that wasn't covered on the company's assessed valuation and made an added assessment, according to commissioner Avis Gunter.
Donnelley paid what the county said they owed but the company didn't agree with the decision. They appealed to the local tax board. The local tax board agreed with Mayer but the state tax board did not.
Mike Miner, attorney for the commissioners, said Donnelley formed a subsidiary to purchase the old equipment that was at the center of the dispute and then Donnelley leased the equipment from the subsidiary. The county, according to Miner, then questioned if that actually lowered the tax value as Donnelley claimed.
Rather than dragging the process on for years, Miner and Donnelley representatives negotiated. Donnelley said the value of the equipment was 6 percent of the purchase price. The county said it was between 25 and 30 percent. A compromise was reached at 15 percent.
With the agreement, Miner said there will be no fiscal disaster for the county.
In other business, the commissioners:
• Appointed Phil Fozo and Bruce Shaffner to the Kosciusko County Convention and Visitor's Bureau.
• Approved accepting Hunter's Ridge Subdivisions I and II into the county system.
• Approved allowing the county highway department to lease the former state highway garage in Silver Lake from the town for 20 years for $1 a year. The town also will be able to use the property.
• Were told by Miner that the state tax board still has not replied to the county regarding the bond issue for the Justice Building expansion project.
• Approved an alley right-of-way vacation for petitioners Kenneth and Helen Mitterling and Brian and Reama Mitchell. The property is between CR 300E and EMS D1 on Dewart Lake.
The county commissioners are Gunter, Brad Jackson and Eddie Creighton. They meet every other Tuesday at 9 a.m. in the courthouse. [[In-content Ad]]
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After several hearings, appeals and negotiations, the Kosciusko County Commissioners approved an agreement Tuesday with R.R. Donnelley & Sons Co. in which the county will give Donnelley back almost half a million dollars in tax credits over a two-year period.
Donnelley also agreed to pre-pay a portion of its taxes for two years.
In 1997, Wayne Township Assessor Kristy Mayer discovered personal property at Donnelley that wasn't covered on the company's assessed valuation and made an added assessment, according to commissioner Avis Gunter.
Donnelley paid what the county said they owed but the company didn't agree with the decision. They appealed to the local tax board. The local tax board agreed with Mayer but the state tax board did not.
Mike Miner, attorney for the commissioners, said Donnelley formed a subsidiary to purchase the old equipment that was at the center of the dispute and then Donnelley leased the equipment from the subsidiary. The county, according to Miner, then questioned if that actually lowered the tax value as Donnelley claimed.
Rather than dragging the process on for years, Miner and Donnelley representatives negotiated. Donnelley said the value of the equipment was 6 percent of the purchase price. The county said it was between 25 and 30 percent. A compromise was reached at 15 percent.
With the agreement, Miner said there will be no fiscal disaster for the county.
In other business, the commissioners:
• Appointed Phil Fozo and Bruce Shaffner to the Kosciusko County Convention and Visitor's Bureau.
• Approved accepting Hunter's Ridge Subdivisions I and II into the county system.
• Approved allowing the county highway department to lease the former state highway garage in Silver Lake from the town for 20 years for $1 a year. The town also will be able to use the property.
• Were told by Miner that the state tax board still has not replied to the county regarding the bond issue for the Justice Building expansion project.
• Approved an alley right-of-way vacation for petitioners Kenneth and Helen Mitterling and Brian and Reama Mitchell. The property is between CR 300E and EMS D1 on Dewart Lake.
The county commissioners are Gunter, Brad Jackson and Eddie Creighton. They meet every other Tuesday at 9 a.m. in the courthouse. [[In-content Ad]]