From the Evansville Courier and Press:
On Thursday, GAGE announced that Evansville's former Whirlpool plant, now called Park 41, has been designated as an Industrial Recovery Site. The informal term for such sites is dinosaur buildings.
The program, administered by the Indiana Economic Development Corp., provides tax credits of up to 25 percent of the cost of remodeling, repair or improvements to a Dinosaur Building.
"It's a way to revitalize the entire facility," said Katelyn Hancock, spokeswoman for the Indiana Economic Development Corp.
Companies located in a Dinosaur Building must apply to the state development corporation to receive the tax credit, Hancock said.
To qualify, a building must have been in service for at least 15 years, with at least 50,000 square feet and must have been at least 75 percent vacant for a year or longer.
Whirlpool shut down its refrigerator plant in 2010. The Kunkel Group, an Evansville developer, purchased the building in April 2011.
The 1.5 million-square-foot building currently has nine tenants.
...
http://www.courierpress.com/news/2012/may/25/park-41-dubbed-dinosaur-building/
Friday, May 25, 2012
Vigo County Companies Seek Tax Abatements for Expansion Projects
From the Terre Haute Tribune Star:
Two Vigo County companies are seeking tax abatements for expansion projects, one of which is included as part of a county incentive package.
Applied Extrusion Technologies Inc. plans to invest an estimated $8 million for new equipment for metalizing and slitting oriented polypropolene packaging materials, including a winder, packout and upgrades for large diameter rolls.
The company plans to add 13 new employees with an annual payroll of $545,00, said Lou Britton, attorney for the company told the special projects committee of the Vigo County Council Wednesday.
AET currently employs 450 workers with an payroll payroll of $28 million. This figure does not include an additional 30 part-time workers, Britton said.
...
The company is seeking a 10-year personal property tax abatement.
The tax abatement phases in taxes over a 10-year period, with no taxes paid in the first year, then 10 percent of taxes paid, with 90 percent abated, in the second year. The amount paid increases annually until the end of the abatement. The company will pay $57,000 in new property taxes over the span of the abatement, Britton said.
The special projects committee approved the abatement to be presented to the full Vigo County Council to vote on a preliminary approval vote at its June 12 meeting. The council will vote on a final approval in July.
The committee also heard a request for a 10-year real property and 10-year personal property tax abatement for ThyssenKrupp Presta Terre Haute LLC. The tax abatements are part of a previously announced county incentive package for the company to construct a 73,600 square foot addition to its facility in the Vigo County Industrial Park, south of Terre Haute. The company will also add three new assembly lines.
ThyssenKrupp Presta currently has 188 employees with an annual payroll of more than $2.44 million.
By the end of 2013, ThyssenKrupp Presta will add 120 new workers with an annual payroll of $4,487,435, in excess of $17 per hour, said Steve Witt, president of the Terre Haute Economic Development Corp.
...
“Vigo County competed for this expansion with several other ThyssenKrupp facilities in the U.S. and Mexico,” Witt said. “To win this project for our community, we provided a local incentive offer that included 10-year real and personal property tax abatement as well as a $200,000 reimbursement to the company for project-related expenses associated with the expansion,” Witt told the council committee.
The company’s real property investment will be $5.1 million, while new equipment will be an investment of $16.7 million, Witt said. The company will pay $547,010 for real property taxes with the abatement, a savings to the company of $536,180 over the length of the abatement, Witt said.
ThyssenKrupp Presta will pay $498,696 in personal property taxes over the 10-year period, a savings of $742,724. The company’s total new taxes, both personal and real property, over the 10-year abatement period is $1,045,706, Witt said.
In addition, the Indiana Economic Development Corp. has offered an incentive package of $1.075 million from the state’s Skills Enhancement Fund for job training and $875,000 in Economic Development for a Growing Economy (EDGE) tax credits for a 10-year period.
...
The committee voted to send the tax abatement, plus a $200,000 appropriation from the county’s Economic Development Income Tax (EDIT) fund for the incentive package, to the full council. The council will vote on a preliminary approval vote at its June 12 meeting. The council will vote on a final approval in July.
In other business, the committee sent eight tax abatements onto to the full council for review in June. The council reviews abatements annually. Committee chairman Brad Anderson, R-4th, said some companies are not up to their full employment, but “in this business climate” it could be difficult for a company to meet full employment.
Councilman Mark Bird, D-at large, said the abatements are “substantially in compliance,” adding companies cannot control a downturn in the economy. The abatements were for Ginovus; Marion Tool & Die Inc.; CSN, LLC; Staples; Certainteed Corp.; NIPSCO; ADVICS: and Danisco USA Inc.
http://tribstar.com/local/x1968170425/Companies-seek-Vigo-tax-abatements
Two Vigo County companies are seeking tax abatements for expansion projects, one of which is included as part of a county incentive package.
Applied Extrusion Technologies Inc. plans to invest an estimated $8 million for new equipment for metalizing and slitting oriented polypropolene packaging materials, including a winder, packout and upgrades for large diameter rolls.
The company plans to add 13 new employees with an annual payroll of $545,00, said Lou Britton, attorney for the company told the special projects committee of the Vigo County Council Wednesday.
AET currently employs 450 workers with an payroll payroll of $28 million. This figure does not include an additional 30 part-time workers, Britton said.
...
The company is seeking a 10-year personal property tax abatement.
The tax abatement phases in taxes over a 10-year period, with no taxes paid in the first year, then 10 percent of taxes paid, with 90 percent abated, in the second year. The amount paid increases annually until the end of the abatement. The company will pay $57,000 in new property taxes over the span of the abatement, Britton said.
The special projects committee approved the abatement to be presented to the full Vigo County Council to vote on a preliminary approval vote at its June 12 meeting. The council will vote on a final approval in July.
The committee also heard a request for a 10-year real property and 10-year personal property tax abatement for ThyssenKrupp Presta Terre Haute LLC. The tax abatements are part of a previously announced county incentive package for the company to construct a 73,600 square foot addition to its facility in the Vigo County Industrial Park, south of Terre Haute. The company will also add three new assembly lines.
ThyssenKrupp Presta currently has 188 employees with an annual payroll of more than $2.44 million.
By the end of 2013, ThyssenKrupp Presta will add 120 new workers with an annual payroll of $4,487,435, in excess of $17 per hour, said Steve Witt, president of the Terre Haute Economic Development Corp.
...
“Vigo County competed for this expansion with several other ThyssenKrupp facilities in the U.S. and Mexico,” Witt said. “To win this project for our community, we provided a local incentive offer that included 10-year real and personal property tax abatement as well as a $200,000 reimbursement to the company for project-related expenses associated with the expansion,” Witt told the council committee.
The company’s real property investment will be $5.1 million, while new equipment will be an investment of $16.7 million, Witt said. The company will pay $547,010 for real property taxes with the abatement, a savings to the company of $536,180 over the length of the abatement, Witt said.
ThyssenKrupp Presta will pay $498,696 in personal property taxes over the 10-year period, a savings of $742,724. The company’s total new taxes, both personal and real property, over the 10-year abatement period is $1,045,706, Witt said.
In addition, the Indiana Economic Development Corp. has offered an incentive package of $1.075 million from the state’s Skills Enhancement Fund for job training and $875,000 in Economic Development for a Growing Economy (EDGE) tax credits for a 10-year period.
...
The committee voted to send the tax abatement, plus a $200,000 appropriation from the county’s Economic Development Income Tax (EDIT) fund for the incentive package, to the full council. The council will vote on a preliminary approval vote at its June 12 meeting. The council will vote on a final approval in July.
In other business, the committee sent eight tax abatements onto to the full council for review in June. The council reviews abatements annually. Committee chairman Brad Anderson, R-4th, said some companies are not up to their full employment, but “in this business climate” it could be difficult for a company to meet full employment.
Councilman Mark Bird, D-at large, said the abatements are “substantially in compliance,” adding companies cannot control a downturn in the economy. The abatements were for Ginovus; Marion Tool & Die Inc.; CSN, LLC; Staples; Certainteed Corp.; NIPSCO; ADVICS: and Danisco USA Inc.
http://tribstar.com/local/x1968170425/Companies-seek-Vigo-tax-abatements
Lake County Proposes New Taxing District for Consolidated 911 Dispatchers
From the Northwest Indiana Times:
Lake County public safety officials are proposing a new county taxing district to pay for the infrastructure of consolidating 911 police dispatchers.
Hammond Police Chief Brian Miller, chairman of a panel of police, fire and civilian officials recommending communications reforms, said Thursday they will ask the Lake County Council for authority to form a taxing district to raise local money for the project.
The panel already has recommended replacing the current network of 18 municipal police and fire dispatch locations with two proposed centers in East Chicago and Hobart at a cost of more than $10 million.
Lake County commissioners said last month the county cannot finance building and operating two centers with current revenue. They have hired a fiscal consultant to work out a solution.
Miller said Thursday public safety officials strongly believe two centers are needed in case a natural disaster wiped out any single center. "With no radio communications, we're done," he told the Lakeshore Chamber of Commerce.
Lake officials recently declared their opposition to a local income tax on county residents and workers to save public transportation provided by the Regional Busing Authority.
Earlier taxing proposals to repair county roads or replace property taxes lost to state-mandated government reforms also have failed to gain enough votes in the County Council to overcome tax vetoes by county commissioners.
http://www.nwitimes.com/news/local/lake/lake-panel-to-ask-for-taxing-district-to-pay-for/article_12606a38-cbcf-56de-8b5a-20a95d135fac.html
Lake County public safety officials are proposing a new county taxing district to pay for the infrastructure of consolidating 911 police dispatchers.
Hammond Police Chief Brian Miller, chairman of a panel of police, fire and civilian officials recommending communications reforms, said Thursday they will ask the Lake County Council for authority to form a taxing district to raise local money for the project.
The panel already has recommended replacing the current network of 18 municipal police and fire dispatch locations with two proposed centers in East Chicago and Hobart at a cost of more than $10 million.
Lake County commissioners said last month the county cannot finance building and operating two centers with current revenue. They have hired a fiscal consultant to work out a solution.
Miller said Thursday public safety officials strongly believe two centers are needed in case a natural disaster wiped out any single center. "With no radio communications, we're done," he told the Lakeshore Chamber of Commerce.
Lake officials recently declared their opposition to a local income tax on county residents and workers to save public transportation provided by the Regional Busing Authority.
Earlier taxing proposals to repair county roads or replace property taxes lost to state-mandated government reforms also have failed to gain enough votes in the County Council to overcome tax vetoes by county commissioners.
http://www.nwitimes.com/news/local/lake/lake-panel-to-ask-for-taxing-district-to-pay-for/article_12606a38-cbcf-56de-8b5a-20a95d135fac.html
Indiana Law Blog Post: Long Reuters article examines increasing use of Tax Courts by the various states
The ILB entry links to a Reuters article on the increasing use of Tax Courts by states. From the article:
...
Their structures vary from state to state, but generally these tribunals offer a place where taxpayers can challenge the decisions of tax authorities, from individual and corporate income taxes to sales and property taxes.
States without an independent court generally rely on administrative hearing systems within their revenue departments to adjudicate tax disputes, like the one Georgia had. Unhappy taxpayers in these systems often may appeal to state courts, but these lack specialized tax judges.
Proponents of the new tax courts include lawyers' groups and corporations. They say the courts handle appeals more quickly and in ways that are fairer to taxpayers than when the appeals are under the control of state revenue departments.
See the full ILB post here:
http://indianalawblog.com/archives/2012/05/courts_long_reu.html
...
Their structures vary from state to state, but generally these tribunals offer a place where taxpayers can challenge the decisions of tax authorities, from individual and corporate income taxes to sales and property taxes.
States without an independent court generally rely on administrative hearing systems within their revenue departments to adjudicate tax disputes, like the one Georgia had. Unhappy taxpayers in these systems often may appeal to state courts, but these lack specialized tax judges.
Proponents of the new tax courts include lawyers' groups and corporations. They say the courts handle appeals more quickly and in ways that are fairer to taxpayers than when the appeals are under the control of state revenue departments.
See the full ILB post here:
http://indianalawblog.com/archives/2012/05/courts_long_reu.html
Calumet Specialty Products Offered Tax Credits and Training Grants for Expansion in Indianapolis
From the Indianapolis Business Journal:
Oil refiner Calumet Specialty Products Partners said it plans to expand its Indianapolis headquarters, adding 48 jobs by 2015.
The company, which produces oils, solvents, waxes, said it will make a multi-million-dollar investment to purchase a new enterprise resource planning system and computer equipment at its headquarters at 2780 Waterfront Parkway.
Calumet, which currently has 75 full-time Indiana employees, has begun hiring management, accounting, sales, human resources and information technology workers.
Calumet began operations in 1990 with the acquisition of a specialty lubricants refinery in northwest Louisiana and a distribution terminal in Burnham, Ill. The company now operates five additional plants in Louisiana, Pennsylvania, Texas, Wisconsin and Missouri.
The Indiana Economic Development Corp. offered Calumet up to $400,000 in tax credits and up to $137,500 in training grants. The city of Indianapolis will consider additional property tax abatement.
...
http://www.ibj.com/calumet-plans-to-add-48-jobs-at-indianapolis-hq/PARAMS/article/34633
Oil refiner Calumet Specialty Products Partners said it plans to expand its Indianapolis headquarters, adding 48 jobs by 2015.
The company, which produces oils, solvents, waxes, said it will make a multi-million-dollar investment to purchase a new enterprise resource planning system and computer equipment at its headquarters at 2780 Waterfront Parkway.
Calumet, which currently has 75 full-time Indiana employees, has begun hiring management, accounting, sales, human resources and information technology workers.
Calumet began operations in 1990 with the acquisition of a specialty lubricants refinery in northwest Louisiana and a distribution terminal in Burnham, Ill. The company now operates five additional plants in Louisiana, Pennsylvania, Texas, Wisconsin and Missouri.
The Indiana Economic Development Corp. offered Calumet up to $400,000 in tax credits and up to $137,500 in training grants. The city of Indianapolis will consider additional property tax abatement.
...
http://www.ibj.com/calumet-plans-to-add-48-jobs-at-indianapolis-hq/PARAMS/article/34633
Thursday, May 24, 2012
Board Finds Auction Sale Insufficient to Raise a Prima Facie Case for Lowering Property's Assessed Value
The Knechts rely on their
purchase of the subject property for $1,425,000 and on two appraisals valuing
the property at $1,500,000 and $1,535,000, respectively. All three items,
however, have a significant evidentiary problem—they address the property’s
value as of dates more than one year after the relevant January 1, 2008
valuation date at issue in this appeal. In fact, Mr. Capozza’s appraisal values
the property as of March 1, 2011—more than three years after the relevant
valuation date.
o A reasonable time is allowed for exposure in the open market;
o Payment is made in terms of cash or in terms of financial arrangements comparable thereto;
o The price is unaffected by special financing or concessions.
Mr. Knecht did not really
attempt to explain how those items related to the subject property’s market
value-in-use as of January 1, 2008. ...
There is another problem
with relying on the subject property’s auction price—it does not appear to meet
the conditions of a market value sale. As explained in the Manual, market value
is
The most probable price (in
terms of money) which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting
prudently and knowledgably, and assuming the price is not affected by undue
stimulus. Implicit in this definition is the consummation of a sale as of a
specified date and the passing for title from seller to buyer under conditions
whereby:
o The buyer
and seller are typically motivated;
o Both parties
are well informed and advised and act in what they consider their best
interests; o A reasonable time is allowed for exposure in the open market;
o Payment is made in terms of cash or in terms of financial arrangements comparable thereto;
o The price is unaffected by special financing or concessions.
MANUAL at 10.
The evidence in this case
shows that two key indicia of a market value sale were missing—the seller was
atypically motivated and the property was not exposed to the market for a
reasonable time. The Knechts bought the property at auction in what all the
witnesses described as a “short sale.” Although the parties did not explain what they meant
by that term, the Board assumes that they were describing a sale in which the
sale price was less than the amount that the seller owed on the property. See
In re Booth, 417 B.R. 820, 824 n.3 (Bankr. M.D. Fla, 2009) (quoting In
re Fabbro, 411 B.R. 407, 413 n.7 (Bankr. D. Utah 2009) (defining a “short
sale” as “a sale by a willing seller to a willing buyer for less than the total
encumbrances of the home with the consent of the underlying lienholders who
agree to take less than what they are owed.”). The seller was under financial
duress and the property sold for significantly less than both the seller’s
original asking price of $2,690,000 and his last asking price of $2,490,000. Pet’rs
Ex. 3. Plus the property was twice offered at auction, each time after
having been exposed to the market for significantly less than the average
marketing time for lakefront properties on Lake Wawasee. Indeed, Mr. Knecht
acknowledged that the property was auctioned partly because of “complications” with the seller
proposing a short sale.
That is not to say that an
auction or short sale automatically fails to qualify as a reliable indicator of
a property’s market value-in-use. The same is true regarding sales for
significantly less than a property’s list price. The Board also recognizes that
there may be situations where enough properties in an area are sold in forced
sales or are otherwise sold under duress as to effectively constitute the
market. But that is not the case here. Given the totality of the circumstances,
the weight of the evidence shows that the seller in this case was under duress
and the price that the Knechts paid for the subject property is not, by itself,
probative of the property’s market value-in-use.
Because the Knechts offered
no probative evidence relating to the subject property’s market value-in-use as
of January 1, 2008, they failed to make a prima facie case for changing the
property’s assessment.
West Lafayette Votes to Issue Bonds for Faith West Project
From the Lafayette Journal Courier:
West Lafayette Economic Development Commission President Bill Baitinger was the sole member of the commission to vote against recommending economic redevelopment bonds for the Faith West project after a public hearing Thursday afternoon.
The 3 to 1 vote in support of issuing the bonds means the matter goes back to the West Lafayette City Council at its June 4 meeting for final approval.
Baitinger explained his vote by saying that Faith West, while economic development, would only bring 18 jobs to the community, and that was not sufficient to convince him to back the bond issue for the Baptist church.
If approved by the council next month, the city of West Lafayette would sell up to $7 million in municipal bonds to JPMorgan Chase. The money from the bond sale will be directed to Faith West to build its four-story campus in the 1900 block of Northwestern Avenue. The city is not responsible for the debt. West Lafayette is merely the conduit from which Faith West is accessing financing.
Because the bonds are issued by a municipality, JPMorgan Chase will not pay income tax on the interest of the loan, which is why lending institutions offer these particular bonds at lower interest rates -- generally 30 percent lower than the open market, said Todd Ponder, an attorney for IceMiller representing Faith West.
http://www.jconline.com/apps/pbcs.dll/article?AID=2012305240020&nclick_check=1
Here are some earlier posts on this story:
http://indianapropertytaxreporter.blogspot.com/2012/05/faith-ministries-responds-to-objection.html
http://indianapropertytaxreporter.blogspot.com/2012/05/more-on-faith-west-bond-issue.html
West Lafayette Economic Development Commission President Bill Baitinger was the sole member of the commission to vote against recommending economic redevelopment bonds for the Faith West project after a public hearing Thursday afternoon.
The 3 to 1 vote in support of issuing the bonds means the matter goes back to the West Lafayette City Council at its June 4 meeting for final approval.
Baitinger explained his vote by saying that Faith West, while economic development, would only bring 18 jobs to the community, and that was not sufficient to convince him to back the bond issue for the Baptist church.
If approved by the council next month, the city of West Lafayette would sell up to $7 million in municipal bonds to JPMorgan Chase. The money from the bond sale will be directed to Faith West to build its four-story campus in the 1900 block of Northwestern Avenue. The city is not responsible for the debt. West Lafayette is merely the conduit from which Faith West is accessing financing.
Because the bonds are issued by a municipality, JPMorgan Chase will not pay income tax on the interest of the loan, which is why lending institutions offer these particular bonds at lower interest rates -- generally 30 percent lower than the open market, said Todd Ponder, an attorney for IceMiller representing Faith West.
http://www.jconline.com/apps/pbcs.dll/article?AID=2012305240020&nclick_check=1
Here are some earlier posts on this story:
http://indianapropertytaxreporter.blogspot.com/2012/05/faith-ministries-responds-to-objection.html
http://indianapropertytaxreporter.blogspot.com/2012/05/more-on-faith-west-bond-issue.html
Porter County Completes Property Reassessment
From the Chesterton Tribune:
http://chestertontribune.com/PorterCounty/county_assessor_announces_comple.htm
Porter County Assessor Jon Snyder announced Tuesday that his
office has received final approval from the Indiana Department of Local
Government Finance for the county’s 2012 assessed value ratio study, marking the
beginning of the 2012 pay 2013 property tax billing cycle. Approval comes a full
twenty days earlier than in the previous year.
“Each time we strive to improve our performance over the prior
year,” Snyder said. “Taxpayers in Porter County taxpayer can rest assured that
the county will once again achieve on time billing.”
Every year, the county assessor is required to review assessed
values by comparing them to market sales information and adjust them if
necessary. Assessments must then meet state-mandated statistical tests for
fairness, equity, and uniformity among townships and property classes.
Ratio study approval is the first major step towards on-time
billing in 2013. The next step, the rolling of gross assessed values from the
assessor to the county auditor, must be completed by July 1, 2012. The study
itself provides an early glimpse into property assessments for Porter County
taxpayers.
Snyder also announced that the county’s assessment appeal backlog,
which numbered over 7,000 in January of 2011, has now dipped below the 1,000
mark. According to Snyder, staff continues to work at reducing and eliminating
the backlog, and expects to be fully complete by the end of the year.
http://chestertontribune.com/PorterCounty/county_assessor_announces_comple.htm
General Assembly Assigns Summer Study Topics for Commission on State Tax and Financing
COMMISSION ON STATE TAX AND FINANCING POLICY (IC 2-5-3-2)
A. Whether the exemption provided by IC 6-2.5-5-46 (exemption from sales tax for
personal property transactions involving certain foreign aircraft), should be madeto apply to all aircraft and avionic devices (HEA 1325);
B. Assessment of outdoor signs (HEA 1072, SB 344);
C. Whether the value of tax credits under Section 42 of the Internal Revenue Code
should be considered in determining the assessed value of low income housing taxcredit property (HEA 1072);
D. All income tax credits using a schedule that provides for approximately half the
credits to be studied each year and for the credits to be studied in the order theywere enacted. The STFP shall prepare a report that covers each credit and that
includes the following:
(1) A review of the original scope and purpose of the credit and whether
the scope or purpose has changed since the credit's enactment;
(2) The economic parameters of the credit, including the credit percentage
and credit limits, and whether these parameters have changed since thecredit's enactment;
(3) A description of the taxpayers that qualify for the credit and how
effective the credit has been in assisting these targeted taxpayers;
(4) The type of activities on which the credit is based and how effective
the credit has been in promoting these targeted activities;
(5) The amount of the credits granted over time;
(6) A determination of the dollar amount of credits granted but not taken
that can be carried forward;
(7) A summary of audit findings for each credit and whether there has
been any misuse of the credit; and
(8) Suggested changes in the law with regard to each credit, including
whether the credit should be retained or not.
(HEA 1072, SB 344);
E. Financing of solid waste management districts, including:
(1) Property tax levies allowed under IC 13-21 and related statutes under
IC 6-1.1;
(2) District final disposal fees set forth in IC 13-21-13;
(3) District solid waste management fees set forth in IC 13-21-14; and
(4) Any other funding sources that are available to and used by districts.
(SEA 131); and
F. Developing a comprehensive plan and set of parameters for distressed local units
of government and school corporations to borrow funds from the state on anemergency basis (HR 89).
http://www.in.gov/legislative/pdf/LCR12-01-new%20interim%20study%20committees%20AS%20ADOPTED.pdf
Wednesday, May 23, 2012
Revenue Finds Taxpayer Failed to Properly Support Request for Research Credit
[O]nly when a taxpayer demonstrates
that (1) the claimed qualified research is conducted in Indiana, and (2) the
employees who participated in the Indiana qualified research projects perform
"qualified services," may the wages paid or incurred be considered as
the Indiana qualified research expenses. Upon reviewing Taxpayers'
documentation, Taxpayers failed to meet the above mentioned
statutory/regulatory requirements.
…
Taxpayers asserted that they were entitled to Indiana research tax credit as claimed based on the Study, which was inconsistent and unreliable. Taxpayers' 346-page documentation failed to demonstrate that their research projects were Indiana qualified research and the wages were properly allocated to employees who participated in the Indiana qualified research. The audit's disallowance based on the best information available during the audit was therefore reasonable.
Accordingly, given the totality of circumstances, in the absence of other documentation, the Department is not able to agree that Taxpayers have met their burden of proof demonstrating that the Department erroneously disallowed some of Taxpayers' claimed Indiana qualified research credit which Taxpayers claimed paid to their employees who performed "qualified services" of the Indiana qualified research activities and that they were entitled to the Indiana qualified research credit on the wage allocations as claimed.
http://www.in.gov/legislative/iac/20120425-IR-045120168NRA.xml.html
…
Taxpayers asserted that they were entitled to Indiana research tax credit as claimed based on the Study, which was inconsistent and unreliable. Taxpayers' 346-page documentation failed to demonstrate that their research projects were Indiana qualified research and the wages were properly allocated to employees who participated in the Indiana qualified research. The audit's disallowance based on the best information available during the audit was therefore reasonable.
Accordingly, given the totality of circumstances, in the absence of other documentation, the Department is not able to agree that Taxpayers have met their burden of proof demonstrating that the Department erroneously disallowed some of Taxpayers' claimed Indiana qualified research credit which Taxpayers claimed paid to their employees who performed "qualified services" of the Indiana qualified research activities and that they were entitled to the Indiana qualified research credit on the wage allocations as claimed.
http://www.in.gov/legislative/iac/20120425-IR-045120168NRA.xml.html
DLGF Notices Intent to Adopt a Rule Regarding Assessment of Golf Courses
Under IC 4-22-2-23 , the Department of Local Government Finance intends to adopt a rule concerning the following:
OVERVIEW: Adds 50 IAC 29 establishing uniform income capitalization tables and procedures to be used for the assessment of golf courses as required by IC 6-1.1-4-42 . Statutory authority: IC 6-1.1-4-42 ; IC 6-1.1-31-11.5 .
DLGF Issues Guidance on Assessment and Appeal Changes
Governor Daniels signed House Enrolled Act No. 1195 (“HEA 1195”) into law on March 19, 2012. The legislation contained significant changes to the property tax assessment process and the appeal process, including submission of information under the income capitalization and gross rent multiplier methods, appeal hearing notification timeframes and continuances, comparable property restrictions, and interest on successful assessment appeals.
See the full memorandum here:
DLGF Issues Guidance on Notice and Adoption of Budgets, Levies and Rates
On March 19, 2012,
Governor Mitch Daniels signed into law House Enrolled Act 1072 (“HEA
1072”). Section 23 of HEA 1072 amends IC
6-1.1-17-3, modifying the procedures by which political subdivisions provide
public notice of their proposed budgets, tax levies, and tax rates. Section 24 amends IC 6-1.1-17-3.5, altering
the process by which a county fiscal body performs non-binding review of the
proposed budget tax levies, and tax rats of a taxing unit (“unit”) not
governed by IC 6-1.1-17-20 or IC 6-1.1-17-20.3.
Section 27 amends IC 6-1.1-17-20, revising the process by which town,
city and county fiscal bodies adopt the budgets, tax levies and tax rates of
certain units.
See the full memorandum here:
These amendments,
which take effect July 1, 2012, establish a budget advertisement and adoption
schedule as follows:
·
September 1:
Last possible day for a unit to submit its proposed budget, tax levies,
and tax rates to the appropriate fiscal body for review or adoption by that
fiscal body.
·
September 13:
Last possible day for unit or fiscal body to publish the first
advertisement of its proposed budget, tax levies, and tax rates and the time
and place at which the unit or fiscal body will hold a public hearing on these
matters.
·
September 20:
Last possible day for unit or fiscal body to publish second
advertisement.
·
October 1:
last possible day for county fiscal body to perform a non-binding review
pursuant to IC 6-1.1-17-3.5.
·
November 1:
Last possible day for unit or fiscal body to adopt a budget, tax levy,
and tax rate.
This memorandum address
[sic] the changes made by Sections 23, 24 and 27 of HEA 1072.
See the full memorandum here:
DLGF Issues Guidance in Response to Board's Heaney Decision
The Indiana Board of Tax Review (“IBTR”) recently issued a final determination in an appeal involving the application of the circuit breaker (“tax cap”) to a taxpayer whose property did not have the “homestead” (standard deduction) – (see http://www.in.gov/ibtr/files/Heaney_71-001-08-3-5-00001.pdf). In their ruling, the IBTR stated, “A taxpayer, however, is not required to apply for the appropriate tax cap; instead, the statute requires the county auditor to identify eligible property, and then apply the credit.” The IBTR further stated, “But a homestead under the tax cap statute is simply a homestead that is ‘eligible’ for the standard deduction, not a homestead that is the subject of an application for, or that has been granted the standard deduction.” The IBTR, therefore, found the taxpayer’s homesite and improvements met the definition of a homestead for purposes of applying the credit provided in IC 6-1.1-20.6-7(a)(1), and that the credit had to be applied in determining the tax bill. The Board did recognize that a county auditor has no way of knowing whether a taxpayer uses a given property for his or her principle residence unless the taxpayer affirmatively shows that fact, such as when the taxpayer applies for a standard deduction.
Therefore, based on the IBTR’s ruling, property may receive the 1% tax cap if it is the owner’s principal place of residence, even though the owner/taxpayer failed to file a homestead standard deduction application.
Please disregard guidance issued by the Department of Local Government Finance (see http://www.in.gov/dlgf/files/2010pay2011_Deductions_and_Credits_Fact_Sheet.pdf ) that stated that in order to receive the homestead tax cap (1% cap); the taxpayer would have had to apply for and received the homestead (standard) deduction.
Here's a summary of the IBTR decision at issue:
Monroe County School Corp Holds Public Hearings on Approval of $2 Million Bond for Digital Learning Initiative
From the Bloomington Herald Times:
MCCSC board members reiterated the need for a $2 million digital learning initiative during a public hearing Tuesday.
Last month, the board approved the initiative and agreed to sell $2 million in bonds to help pay for the project that aims at providing iPads to every student by 2016.
On Tuesday, during a regularly scheduled board meeting, the board held two public hearings regarding the sale of the bonds and reiterated why the project is needed in the district.
“What we need to do by this, and what we are doing by this, is offering more opportunity to the students instead of cutting them off,” said board member Lois Sabo-Skelton. “Plus, the fact is today you can’t go through life without some introduction to computing. That doesn’t mean this will be the way you will produce your artwork or final writings or whatever, you can still hold that book in your hands. There is a cooperation with the two and that’s what we’re after.”
...
Superintendent Judy DeMuth acknowledged that the district’s current infrastructure cannot support the technology initiative but reiterated that part of the $2 million will be used to fix that problem.
...
According to Comptroller Tim Thrasher, the board will continue with the necessary steps to sell the bonds and should receive the money by the middle of September.
The estimated impact on the MCCSC property tax rate is estimated to be .7 of one cent, according to Thrasher.
...
http://www.heraldtimesonline.com/stories/2012/05/23/schoolnews.board-reiterates-need-for-bonds-for-digital-learning-initiative.sto?1337797537
MCCSC board members reiterated the need for a $2 million digital learning initiative during a public hearing Tuesday.
Last month, the board approved the initiative and agreed to sell $2 million in bonds to help pay for the project that aims at providing iPads to every student by 2016.
On Tuesday, during a regularly scheduled board meeting, the board held two public hearings regarding the sale of the bonds and reiterated why the project is needed in the district.
“What we need to do by this, and what we are doing by this, is offering more opportunity to the students instead of cutting them off,” said board member Lois Sabo-Skelton. “Plus, the fact is today you can’t go through life without some introduction to computing. That doesn’t mean this will be the way you will produce your artwork or final writings or whatever, you can still hold that book in your hands. There is a cooperation with the two and that’s what we’re after.”
...
Superintendent Judy DeMuth acknowledged that the district’s current infrastructure cannot support the technology initiative but reiterated that part of the $2 million will be used to fix that problem.
...
According to Comptroller Tim Thrasher, the board will continue with the necessary steps to sell the bonds and should receive the money by the middle of September.
The estimated impact on the MCCSC property tax rate is estimated to be .7 of one cent, according to Thrasher.
...
http://www.heraldtimesonline.com/stories/2012/05/23/schoolnews.board-reiterates-need-for-bonds-for-digital-learning-initiative.sto?1337797537
Editorial Questions Delaware County's Economic Development Plans
By Larry Riley, Ball State University Professor, in the Muncie Star Press:
The Delaware County Council gamely soldiers forward despite revenues in a precarious position, yesterday approving the borrowing of millions of dollars via bond issuance.
The majority was for Bell Aquaculture LLC to expand from the production of 3 million yellow perch annually to 8.5 million.
That bond carries zero liability for the county's taxpayers. Bell is solely on the, um, hook. The county's action simply allows the bonds to be sold as tax-exempt instruments.
...
But another $3.2 million in bonding for improvements at Park One industrial park at
I-69 and Ind. 332 did raise some eyebrows, and discussion. The bonds include a clause that should the Tax Increment Financing district in the park fail to raise enough revenues, a special tax on the unincorporated areas of Delaware County will be enacted to do so.
County consultants assured -- well, maybe "assured" isn't the right word -- council members that the clause is a "marketing tool" to make the bonds more attractive to banks, though they also admitted without the clause, the bonds would be "impossible" to sell.
The bonds will complete a railroad spur at the park, plus defray Yorktown's costs of extending a sewer line to the development.
...
Another $2.2 million in bonding was sought by the county's Economic Development Alliance to help Brevini Wind, one of Park One's tenants, still struggling to produce products (wind turbines) and employ people in numbers (multiple hundreds, not the 70 or so now on board) originally envisioned.
But several council members said they hadn't seen any documents on that bonding. The documents had been electronically distributed by the auditor's office, but feelings from the prior discussion still were running sufficiently high that the matter was set aside for a future special meeting.
Council members did not, however, flinch from approving $870,282.35 -- where they'll get it, nobody knows -- for the county sheriff's merit deputy retirement fund.
...
The county treasurer's property tax collections are ready for distribution, and treasurer John Dorer brought what he said would be bad news to council's finance committee last week.
...
These collections are for all 47 taxing units (who needs more governmental consolidation?) in Delaware County, and while the figures have fallen each of the past four years, we're somewhat leveling off now that property tax caps are fully rolled in.
Tax collections in spring of 2009, 2010, and last year were $47 million, $46.1 million, and $45.2 million. You see the downward trending. This year the amount was $43.6 million, down again.
What's not known is how much of those collections represent both spring and fall tax bills. Many taxpayers pay their entire bill in May, rather than pay half now and half in November.
If history is a guide, the whole of Delaware County is on track to see $3.1 million less in total property tax revenues in 2012. Between 15 and 20 percent of that goes to county government.
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2012205230310
The Delaware County Council gamely soldiers forward despite revenues in a precarious position, yesterday approving the borrowing of millions of dollars via bond issuance.
The majority was for Bell Aquaculture LLC to expand from the production of 3 million yellow perch annually to 8.5 million.
That bond carries zero liability for the county's taxpayers. Bell is solely on the, um, hook. The county's action simply allows the bonds to be sold as tax-exempt instruments.
...
But another $3.2 million in bonding for improvements at Park One industrial park at
I-69 and Ind. 332 did raise some eyebrows, and discussion. The bonds include a clause that should the Tax Increment Financing district in the park fail to raise enough revenues, a special tax on the unincorporated areas of Delaware County will be enacted to do so.
County consultants assured -- well, maybe "assured" isn't the right word -- council members that the clause is a "marketing tool" to make the bonds more attractive to banks, though they also admitted without the clause, the bonds would be "impossible" to sell.
The bonds will complete a railroad spur at the park, plus defray Yorktown's costs of extending a sewer line to the development.
...
Another $2.2 million in bonding was sought by the county's Economic Development Alliance to help Brevini Wind, one of Park One's tenants, still struggling to produce products (wind turbines) and employ people in numbers (multiple hundreds, not the 70 or so now on board) originally envisioned.
But several council members said they hadn't seen any documents on that bonding. The documents had been electronically distributed by the auditor's office, but feelings from the prior discussion still were running sufficiently high that the matter was set aside for a future special meeting.
Council members did not, however, flinch from approving $870,282.35 -- where they'll get it, nobody knows -- for the county sheriff's merit deputy retirement fund.
...
The county treasurer's property tax collections are ready for distribution, and treasurer John Dorer brought what he said would be bad news to council's finance committee last week.
...
These collections are for all 47 taxing units (who needs more governmental consolidation?) in Delaware County, and while the figures have fallen each of the past four years, we're somewhat leveling off now that property tax caps are fully rolled in.
Tax collections in spring of 2009, 2010, and last year were $47 million, $46.1 million, and $45.2 million. You see the downward trending. This year the amount was $43.6 million, down again.
What's not known is how much of those collections represent both spring and fall tax bills. Many taxpayers pay their entire bill in May, rather than pay half now and half in November.
If history is a guide, the whole of Delaware County is on track to see $3.1 million less in total property tax revenues in 2012. Between 15 and 20 percent of that goes to county government.
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2012205230310
Delaware County Council Approves Bonds for Projects
From the Muncie Star Press:
Members of Delaware County Council ... members split on a request to approve $3.2 million in bonds to cover the local portion of a rail spur for the Park One/332 industrial park as well as a sewer upgrade for that same park that would serve the needs of Mursix Corp., a rapidly growing manufacturer.
Council Republican Ron Quakenbush ... and fellow Republican Rick Spangler ultimately voted against the first reading of the $3.2 million request, which passed with four votes since council President James King was absent.
Council members likewise threw up a red flag on a request to approve for $2.2 million in revenue bonds for Brevini after three members said they hadn't received sufficient information. Brad Bookout of the Muncie-Delaware County Economic Development Alliance asked council members to consider calling a special meeting to act on the request.
...
Council members were told that even if Brevini and other ventures at Park One failed, the impact on local property taxes would be 2.3 cents per $100 of assessed valuation.
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2012205230339
Members of Delaware County Council ... members split on a request to approve $3.2 million in bonds to cover the local portion of a rail spur for the Park One/332 industrial park as well as a sewer upgrade for that same park that would serve the needs of Mursix Corp., a rapidly growing manufacturer.
Council Republican Ron Quakenbush ... and fellow Republican Rick Spangler ultimately voted against the first reading of the $3.2 million request, which passed with four votes since council President James King was absent.
Council members likewise threw up a red flag on a request to approve for $2.2 million in revenue bonds for Brevini after three members said they hadn't received sufficient information. Brad Bookout of the Muncie-Delaware County Economic Development Alliance asked council members to consider calling a special meeting to act on the request.
...
Council members were told that even if Brevini and other ventures at Park One failed, the impact on local property taxes would be 2.3 cents per $100 of assessed valuation.
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2012205230339
American Mitsuba Eligible for Abatement for Expansion in Monroeville
From the Fort Wayne Journal-Gazette:
American Mitsuba Corporation will be announcing a major investment in Allen County. The company's proposed investment totals $8.3 million, which includes new equipment and a warehouse expansion. This investment will allow the company to add 25 new core associate positions. The company's operation is located at 21600 Monroeville Road in Monroeville, Indiana.
...
The company is eligible for a ten year property tax abatement. The Monroeville Town Council will consider phasing in both real and personal property taxes associated with the project. American Mitsuba could save approximately $573,800 while still paying over $495,000 in local property tax over ten years.
The company would continue to pay taxes currently imposed on prior investments plus the phase-in of taxes on the new investment. The State of Indiana has provided support for the company's training efforts and investment through the Indiana Economic Development Corporation which was critical to the decision made to place these investments in Monroeville rather than at the company's other North American facilities.
...
http://www.journalgazette.net/article/20120523/BLOGS01/120529821/0/SEARCH
American Mitsuba Corporation will be announcing a major investment in Allen County. The company's proposed investment totals $8.3 million, which includes new equipment and a warehouse expansion. This investment will allow the company to add 25 new core associate positions. The company's operation is located at 21600 Monroeville Road in Monroeville, Indiana.
...
The company is eligible for a ten year property tax abatement. The Monroeville Town Council will consider phasing in both real and personal property taxes associated with the project. American Mitsuba could save approximately $573,800 while still paying over $495,000 in local property tax over ten years.
The company would continue to pay taxes currently imposed on prior investments plus the phase-in of taxes on the new investment. The State of Indiana has provided support for the company's training efforts and investment through the Indiana Economic Development Corporation which was critical to the decision made to place these investments in Monroeville rather than at the company's other North American facilities.
...
http://www.journalgazette.net/article/20120523/BLOGS01/120529821/0/SEARCH
Despite Reservations, Fort Wayne City Council Approves Annexation
From the Fort Wayne News Sentinel:
Despite some qualms, Fort Wayne City Council moved Tuesday toward approving an Auburn dentist’s request to become part of Fort Wayne in hopes of getting a tax break to start a new practice on the city’s north end.
David Painter, who specializes in sedation dentistry, wants to build a 5,000 square-foot building that would house offices suites at the southeast corner of Coldwater and Union Chapel roads – a chunk of land that currently sits outside the city limits.
Because Allen County officials last year rejected Painter’s request to phase in property taxes on the new building and equipment, he is asking Fort Wayne to annex the land into the city. He would then seek tax incentives from the city. The new request raised eyebrows among come city and county council members.
...
The city also would need to start maintaining part of the intersection that currently sits outside Fort Wayne, a cost of about $55,000 over a 10-year period, according to city planners.
But Rob Young, a spokesman for Painter, said the city and other local taxing units would still benefit from added tax revenue even with the incentives. Over the 10-year tax phase-in period, the city would get about $88,000 in tax revenue from the offices, more than making up for the intersection maintenance costs, Young said.
Once full property taxes kick in, the property would start producing about $250,000 for the city over 10 years, Young said. The undeveloped land currently raises less than $1,000 in taxes over a similar period, city planner Paul Spoelhof said.
...
To some County Council members, the city’s possible decision to grant a tax abatement would send mixed signals about local governments’ policy on incentives because county officials already said no.
“It basically puts two local governments against each other,” County Councilman Darren Vogt said last week.
City Council voted 6-2, with one abstention, Tuesday to approve a preliminary annexation plan.
Painter said he plans to invest about $1.9 million in the offices and create between 4 and 10 jobs within five years. He also would keep his current practice in Auburn, he said.
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20120523/NEWS/120529874/0/SEARCH
An earlier story on this issue can be found here:
http://indianapropertytaxreporter.blogspot.com/2012/05/annexation-request-bypasses-countys.html
Despite some qualms, Fort Wayne City Council moved Tuesday toward approving an Auburn dentist’s request to become part of Fort Wayne in hopes of getting a tax break to start a new practice on the city’s north end.
David Painter, who specializes in sedation dentistry, wants to build a 5,000 square-foot building that would house offices suites at the southeast corner of Coldwater and Union Chapel roads – a chunk of land that currently sits outside the city limits.
Because Allen County officials last year rejected Painter’s request to phase in property taxes on the new building and equipment, he is asking Fort Wayne to annex the land into the city. He would then seek tax incentives from the city. The new request raised eyebrows among come city and county council members.
...
The city also would need to start maintaining part of the intersection that currently sits outside Fort Wayne, a cost of about $55,000 over a 10-year period, according to city planners.
But Rob Young, a spokesman for Painter, said the city and other local taxing units would still benefit from added tax revenue even with the incentives. Over the 10-year tax phase-in period, the city would get about $88,000 in tax revenue from the offices, more than making up for the intersection maintenance costs, Young said.
Once full property taxes kick in, the property would start producing about $250,000 for the city over 10 years, Young said. The undeveloped land currently raises less than $1,000 in taxes over a similar period, city planner Paul Spoelhof said.
...
To some County Council members, the city’s possible decision to grant a tax abatement would send mixed signals about local governments’ policy on incentives because county officials already said no.
“It basically puts two local governments against each other,” County Councilman Darren Vogt said last week.
City Council voted 6-2, with one abstention, Tuesday to approve a preliminary annexation plan.
Painter said he plans to invest about $1.9 million in the offices and create between 4 and 10 jobs within five years. He also would keep his current practice in Auburn, he said.
http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20120523/NEWS/120529874/0/SEARCH
An earlier story on this issue can be found here:
http://indianapropertytaxreporter.blogspot.com/2012/05/annexation-request-bypasses-countys.html
Tri-Creek School Board Approves Refinancing $4 Million Bond
From the Northwest Indiana Times:
The Tri-Creek School Corp. board on Tuesday approved retaining City Securities, of Fort Wayne, for refinancing $4 million from the high school bond issue.
The board agreed to hire bond counsel and direct board attorney Monica Conrad to assist in the process.
Rod Wilson, of City Securities, explained the bond refinancing strategy that would put cash into capital projects, provide savings and reduce debt. He likened the school corporation to a homeowner who opts to refinance.
"This will leave the payments the same," Wilson said. He said the tax rate essentially will remain the same.
The refinancing will deliver $300,000 to $360,000 into district coffers for capital project use.
...
http://www.nwitimes.com/news/local/lake/lowell/tri-creek-school-board-oks-high-school-bond-refinancing/article_543f3be6-0403-538f-ae09-73419f9c0ea4.html
The Tri-Creek School Corp. board on Tuesday approved retaining City Securities, of Fort Wayne, for refinancing $4 million from the high school bond issue.
The board agreed to hire bond counsel and direct board attorney Monica Conrad to assist in the process.
Rod Wilson, of City Securities, explained the bond refinancing strategy that would put cash into capital projects, provide savings and reduce debt. He likened the school corporation to a homeowner who opts to refinance.
"This will leave the payments the same," Wilson said. He said the tax rate essentially will remain the same.
The refinancing will deliver $300,000 to $360,000 into district coffers for capital project use.
...
http://www.nwitimes.com/news/local/lake/lowell/tri-creek-school-board-oks-high-school-bond-refinancing/article_543f3be6-0403-538f-ae09-73419f9c0ea4.html
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