Criteria For Tax Abatements Questioned
July 28, 2016 at 4:25 p.m.
Does Kosciusko County need to establish criteria for granting tax abatements?
That's the question county councilman Jim Tranter asked at Thursday's council meeting. The concern arose after attorney Steve Snyder asked the council to approve a resolution establishing a public hearing for a tax abatement for his client, Chuck Simons.
An abatement is a tax deduction for a specified amount of time, according to the auditor's office. There are several different kinds of abatements with the usual request being for an economic revitalization area abatement.
Simons plans to begin a new business at 27 E. CR 250N, south of the Warsaw airport. The new business is a steel process fabrication plant that would supply parts to the trucking industry. The building has been vacant for several years. The requested abatement would be for $400,000 of equipment for steel rolling.
The resolution, approved unanimously by the council, set the public hearing for the July 1 county council meeting. The resolution does not grant the abatement but only sets a public hearing. At the July meeting, the council will vote either for or against establishing the location as an Economic Revitalization Area.
The company, Simons Roll Forming Company, will have 13 new employees by the end of the first year and will add three to five new employees in the second year. Eventually, Simons said, he hopes to employ 60 to 70 people.
"(The company's) in the works right now. We're in the process of putting this together," Simons said.
He said he already has a market established for the products. He will bring many customers from his previous job to the new company.
Snyder said Simons is seeking a 10-year abatement.
Councilman Harold Jones said Simons is not new to the area and he has known Simons for many years. He said he is for new small businesses and motioned for the resolution to be passed.
During later discussion on the need to set criteria for tax abatements, Tranter said, "We have never set any criteria for what an abatement is." He said it seemed as if the council approved abatements depending on whether they were in a good or bad mood.
"The question is, what is keeping anyone in this county from coming and asking for an abatement if we don't have any criteria?" he said.
County auditor Charlene Knispel said, "I think if we follow what the state has set, that's one criteria."
"I'm a little opposed to a company that is up and running (receiving a tax abatement)," said Jones. "I'm in favor of new companies that are (just beginning)."
He said it would be difficult to set criteria because some companies that want to double their size may need help also.
Councilman Lewis Bertsch said, "I do not know of any new companies that haven't come in asking for an abatement."
"I can name five," replied Tranter.
Bertsch asked what can the county lose by granting abatements.
"If they don't locate in the county - yes, you're losing," said Tranter.
Auditor-elect Sue Ann Mitchell said several counties in Indiana have set standards for tax abatements. The city of Warsaw also has criteria, she said.
Tranter asked Mitchell to gather samples of criteria from other counties for review.
Councilman Tom Anglin said during his years on the county council, he has heard many requests for abatements. He said he only voted for two and they were for small companies just starting out.
"I know a lot of companies have expanded and not come in here," said Tranter.
In other business:
• Kosciusko County Commissioners requested an additional appropriation of $200,000 for contract services concerning the Justice Building expansion project.
• Kosciusko County highway superintendent and engineer Rob Ladson requested an additional appropriation of $500,000 from the motor vehicle highway account. There is currently $1.3 million in the account.
"My goal is, if we've got additional money, to use it wisely where it is intended," Ladson said.
The council approved the appropriation.
With the money, the Old Road 30 project will be completed from Ind. 13 to U.S. 30. Resurfacing will be completed from CR 100E in Warsaw to CR 450N.
Ladson said there are several reasons why the highway department wants to complete the entire project this summer.
"What has happened is the cost of asphalt has decreased," he said.
Another reason, Ladson said, is the Indiana General Assembly approved an additional appropriation of $200 million for the next two state fiscal years for local roads and streets. Kosciusko County will receive an unexpected $75,000 a month for the next two fiscal years for local roads and streets. The money the county receives from the state appropriation will go back into the account that was used to pay for the Old Road 30 project.
• Lisa Krull, Milford Public Library director, asked the county council to approve their capital project fund. Krull is asking for 4 cents for every $100 for the capital project and will use the money for building expansion and other capital projects. The council approved. Last year, she said, the state did not approve the capital project fund because she did not ask for enough money.
• The Wage Review Committee will meet June 15 at noon in County Administrator Ron Robinson's office.
• Budget hearings were set for Aug. 16, 17 and 19 beginning at 6 p.m. Service organizations are asked to attend the July 1 meeting of the county council. [[In-content Ad]]
Does Kosciusko County need to establish criteria for granting tax abatements?
That's the question county councilman Jim Tranter asked at Thursday's council meeting. The concern arose after attorney Steve Snyder asked the council to approve a resolution establishing a public hearing for a tax abatement for his client, Chuck Simons.
An abatement is a tax deduction for a specified amount of time, according to the auditor's office. There are several different kinds of abatements with the usual request being for an economic revitalization area abatement.
Simons plans to begin a new business at 27 E. CR 250N, south of the Warsaw airport. The new business is a steel process fabrication plant that would supply parts to the trucking industry. The building has been vacant for several years. The requested abatement would be for $400,000 of equipment for steel rolling.
The resolution, approved unanimously by the council, set the public hearing for the July 1 county council meeting. The resolution does not grant the abatement but only sets a public hearing. At the July meeting, the council will vote either for or against establishing the location as an Economic Revitalization Area.
The company, Simons Roll Forming Company, will have 13 new employees by the end of the first year and will add three to five new employees in the second year. Eventually, Simons said, he hopes to employ 60 to 70 people.
"(The company's) in the works right now. We're in the process of putting this together," Simons said.
He said he already has a market established for the products. He will bring many customers from his previous job to the new company.
Snyder said Simons is seeking a 10-year abatement.
Councilman Harold Jones said Simons is not new to the area and he has known Simons for many years. He said he is for new small businesses and motioned for the resolution to be passed.
During later discussion on the need to set criteria for tax abatements, Tranter said, "We have never set any criteria for what an abatement is." He said it seemed as if the council approved abatements depending on whether they were in a good or bad mood.
"The question is, what is keeping anyone in this county from coming and asking for an abatement if we don't have any criteria?" he said.
County auditor Charlene Knispel said, "I think if we follow what the state has set, that's one criteria."
"I'm a little opposed to a company that is up and running (receiving a tax abatement)," said Jones. "I'm in favor of new companies that are (just beginning)."
He said it would be difficult to set criteria because some companies that want to double their size may need help also.
Councilman Lewis Bertsch said, "I do not know of any new companies that haven't come in asking for an abatement."
"I can name five," replied Tranter.
Bertsch asked what can the county lose by granting abatements.
"If they don't locate in the county - yes, you're losing," said Tranter.
Auditor-elect Sue Ann Mitchell said several counties in Indiana have set standards for tax abatements. The city of Warsaw also has criteria, she said.
Tranter asked Mitchell to gather samples of criteria from other counties for review.
Councilman Tom Anglin said during his years on the county council, he has heard many requests for abatements. He said he only voted for two and they were for small companies just starting out.
"I know a lot of companies have expanded and not come in here," said Tranter.
In other business:
• Kosciusko County Commissioners requested an additional appropriation of $200,000 for contract services concerning the Justice Building expansion project.
• Kosciusko County highway superintendent and engineer Rob Ladson requested an additional appropriation of $500,000 from the motor vehicle highway account. There is currently $1.3 million in the account.
"My goal is, if we've got additional money, to use it wisely where it is intended," Ladson said.
The council approved the appropriation.
With the money, the Old Road 30 project will be completed from Ind. 13 to U.S. 30. Resurfacing will be completed from CR 100E in Warsaw to CR 450N.
Ladson said there are several reasons why the highway department wants to complete the entire project this summer.
"What has happened is the cost of asphalt has decreased," he said.
Another reason, Ladson said, is the Indiana General Assembly approved an additional appropriation of $200 million for the next two state fiscal years for local roads and streets. Kosciusko County will receive an unexpected $75,000 a month for the next two fiscal years for local roads and streets. The money the county receives from the state appropriation will go back into the account that was used to pay for the Old Road 30 project.
• Lisa Krull, Milford Public Library director, asked the county council to approve their capital project fund. Krull is asking for 4 cents for every $100 for the capital project and will use the money for building expansion and other capital projects. The council approved. Last year, she said, the state did not approve the capital project fund because she did not ask for enough money.
• The Wage Review Committee will meet June 15 at noon in County Administrator Ron Robinson's office.
• Budget hearings were set for Aug. 16, 17 and 19 beginning at 6 p.m. Service organizations are asked to attend the July 1 meeting of the county council. [[In-content Ad]]