From the Lafayette Journal & Courier:
The first installment for Newton County taxes is due May 10, said county treasurer Rosalie Mathis. The second installment is due Nov. 13.
Tax statements will be mailed Monday.
Payments can be made at the treasurer's office, a local bank or by mail. Use your tax statement when making a payment.
The treasurer's office is open from 8 a.m. to 4 p.m. local time, Monday through Friday. The office also will be open from 8 a.m. to noon local time on Saturday, May 5.
The courthouse will be closed Tuesday, May 8, for the primary election.
http://www.jconline.com/apps/pbcs.dll/article?AID=2012204070314
Sunday, April 8, 2012
Terre Haute Tribune-Star Editorial Argues "Hoosiers have Reason to Lack Confidence in State"
It is quite a good thing that Indiana’s local governments and school boards are receiving unexpected money from the state. It is quite a bad thing that the influx of money — which on Thursday rose to $526 million in total within the last four months — comes because of incompetence in the state Department of Revenue.
In the latest case, as reported on today’s front page, the state has failed to distribute to local government some $206 million it collected in county option income taxes. That announcement came even as the state was beginning to send out that money, posthaste.
Still fresh in memory, in December the state discovered $320 million it didn’t know it had. About one-fourth of that found money is being used to fund all-day kindergarten throughout the state next year — which is a very good thing, although there is still worry about unstable future funding.
The latest mistake is being blamed on a computer programming error, but the immediate departure of two senior managers in the Department of Revenue and the pending resignation of the department’s commissioner suggest that human error is involved in not discovering the programming error earlier, or preventing it at all. The people of Indiana have every right to expect that the money they are taxed for governmental services be properly accounted for and paid out — no matter the computer software being used.
For Vigo County, Thursday’s distribution of monies means $5.1 million (not including interest) coming here for redistribution within the county. Much of that money is for underpayments already owed the county. The rest is money it would have been underpaid through the end of 2012 had the error not been discovered. Our other “home” counties — Clay, Parke, Vermillion, Sullivan and Greene — will receive lesser but significant amounts.
All levels of local government need this money — which is truly county money and not state money — to deal with the dramatic cost-cutting they have encountered in recent years. One can only imagine the gnashing of teeth that the underestimation and under-distribution of these funds have caused county, city and town budget minders. Also consider the jobs cuts, projects delayed and unnecessary interest the state is paying the counties for these mistakes.
As these things go, the mistake is already politicized in a few short hours. Republican leaders Brian Bosma and David Long issued a businesslike statement calling for transparency and bipartisan support for a thorough, independent investigation. That high ground, of course, is something the party in power can take. By contrast, in a laughable, overly political statement, Democrats Pat Bauer and Vi Simpson (the latter of whom we thought knew better) took a we-told-you-so stance, noting they had asked for an outside audit when the $320 million was “found” last year. (Sample laugh line: “Perhaps they [Republicans] can try and explain this latest mistake away by saying ‘oops’ and comparing it to finding millions of dollars stuck in the cushions of a couch, just as they did last year.”)
Hubris aside, the serious part of that statement is that the Daniels administration can’t just say “oops” and move on. And it hasn’t. Instead, it has ordered an immediate release of the funds to counties and is looking for outside auditors. Still, $526 million in revenue errors gives Hoosiers little confidence that the next steps will be much more accurate.
The state has been ever ready in recent years to give out grades to local schools for their performances and test scores. For this debacle, the state administration deserves an F in accounting.
http://tribstar.com/editorials/x1224373821/TRIBUNE-STAR-EDITORIAL-Another-debacle-in-budgeting
In the latest case, as reported on today’s front page, the state has failed to distribute to local government some $206 million it collected in county option income taxes. That announcement came even as the state was beginning to send out that money, posthaste.
Still fresh in memory, in December the state discovered $320 million it didn’t know it had. About one-fourth of that found money is being used to fund all-day kindergarten throughout the state next year — which is a very good thing, although there is still worry about unstable future funding.
The latest mistake is being blamed on a computer programming error, but the immediate departure of two senior managers in the Department of Revenue and the pending resignation of the department’s commissioner suggest that human error is involved in not discovering the programming error earlier, or preventing it at all. The people of Indiana have every right to expect that the money they are taxed for governmental services be properly accounted for and paid out — no matter the computer software being used.
For Vigo County, Thursday’s distribution of monies means $5.1 million (not including interest) coming here for redistribution within the county. Much of that money is for underpayments already owed the county. The rest is money it would have been underpaid through the end of 2012 had the error not been discovered. Our other “home” counties — Clay, Parke, Vermillion, Sullivan and Greene — will receive lesser but significant amounts.
All levels of local government need this money — which is truly county money and not state money — to deal with the dramatic cost-cutting they have encountered in recent years. One can only imagine the gnashing of teeth that the underestimation and under-distribution of these funds have caused county, city and town budget minders. Also consider the jobs cuts, projects delayed and unnecessary interest the state is paying the counties for these mistakes.
As these things go, the mistake is already politicized in a few short hours. Republican leaders Brian Bosma and David Long issued a businesslike statement calling for transparency and bipartisan support for a thorough, independent investigation. That high ground, of course, is something the party in power can take. By contrast, in a laughable, overly political statement, Democrats Pat Bauer and Vi Simpson (the latter of whom we thought knew better) took a we-told-you-so stance, noting they had asked for an outside audit when the $320 million was “found” last year. (Sample laugh line: “Perhaps they [Republicans] can try and explain this latest mistake away by saying ‘oops’ and comparing it to finding millions of dollars stuck in the cushions of a couch, just as they did last year.”)
Hubris aside, the serious part of that statement is that the Daniels administration can’t just say “oops” and move on. And it hasn’t. Instead, it has ordered an immediate release of the funds to counties and is looking for outside auditors. Still, $526 million in revenue errors gives Hoosiers little confidence that the next steps will be much more accurate.
The state has been ever ready in recent years to give out grades to local schools for their performances and test scores. For this debacle, the state administration deserves an F in accounting.
http://tribstar.com/editorials/x1224373821/TRIBUNE-STAR-EDITORIAL-Another-debacle-in-budgeting
59 Properties for Sale in Wayne County's Commissioners' Sale April 17th
From the Richmond Palladium Item:
Two well-known but frightfully neglected properties top the list of the Wayne County Commissioners' Sale, planned for April 17 at the Wayne County Commissioners Chambers.
Bradford Apartments, the one-time elegant building of fashionable flats at 1200 E. Main St. in Richmond, and the former Economy Tile Co. property in Economy are the two most noteworthy properties in the sale.
Bidding for both properties begins at $500 that day.
"Those are two of the far better properties that are there," said Commissioner Ken Paust. "We think it will be an interesting sale. Our goal is to get those properties back on the tax rolls."
There are 59 properties in the sale, many just small strips of land.
When taxes on the properties go unpaid, properties are first sold at a tax sale. If they don't sell then, the county holds a commissioners' sale and the bidding starts at $100 for properties that don't contain any structures and $500 for those that do.
...
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012204070326
Two well-known but frightfully neglected properties top the list of the Wayne County Commissioners' Sale, planned for April 17 at the Wayne County Commissioners Chambers.
Bradford Apartments, the one-time elegant building of fashionable flats at 1200 E. Main St. in Richmond, and the former Economy Tile Co. property in Economy are the two most noteworthy properties in the sale.
Bidding for both properties begins at $500 that day.
"Those are two of the far better properties that are there," said Commissioner Ken Paust. "We think it will be an interesting sale. Our goal is to get those properties back on the tax rolls."
There are 59 properties in the sale, many just small strips of land.
When taxes on the properties go unpaid, properties are first sold at a tax sale. If they don't sell then, the county holds a commissioners' sale and the bidding starts at $100 for properties that don't contain any structures and $500 for those that do.
...
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012204070326
Saturday, April 7, 2012
Property Tax Rates up in Delaware County
From the Munice Star-Press:
Property tax rates that will be used to figure this year's tax bills are up slightly for some areas of Delaware County, especially Center Township.
The rates were certified to the Delaware County auditor's office this week by the state Department of Local Government Finance.
The Center Township rate -- one of more than 40 rates for different areas of the county based on territories covered by various municipalities, governments, sanitation districts and other taxing units -- went up from $2.45 per $100 of assessed valuation to $2.67. The city tax rate went from $4.36 to $4.40.
The auditor's office said it was too early to say how the increased rate would affect tax bills due this spring. The new figures won't be plugged into the county's system until next week at the earliest.
It's also hard to say what effect, if any, government spending had on rates. County government, for example, set a budget that was $500,000 under its maximum levy of $20.5 million, Deputy Auditor Donna Patterson noted.
That means some rates might be up slightly because assessed values are down for some areas. Tax rates go up when assessed values go down.
While the overall assessed value of all the property in the county was $3.222 billion -- up from $3.214 billion last year -- the assessed value of property in the city was down from $1.631 billion last year to $1.609 billion this year, Patterson said.
Chuck Ward of PSC Associates, which has a contract to assess property for Delaware County, said no major taxable structures were demolished, and thus removed from the tax rolls, in the past year.
The city's former Chevrolet plant came off the tax rolls in previous years after it was razed.
Ward did note the overall county rate could be affected by a big increase in the value of agricultural land, which dominates areas of Delaware County outside the city, where values went up.
Agricultural land values, set by the Department of Local Government Finance, went up from $1,290 an acre to $1,500 an acre in the past year, Ward said.
Ward said the various factors -- property owner appeals over assessed values, a small amount of demolition and a lack of new construction -- play a role in assessed values.
Among tax rates around the county, most towns and townships outside Center Township will see lower tax rates. Yorktown's rate, for example, drops by 7 cents to $2.76.
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2012204070314
Property tax rates that will be used to figure this year's tax bills are up slightly for some areas of Delaware County, especially Center Township.
The rates were certified to the Delaware County auditor's office this week by the state Department of Local Government Finance.
The Center Township rate -- one of more than 40 rates for different areas of the county based on territories covered by various municipalities, governments, sanitation districts and other taxing units -- went up from $2.45 per $100 of assessed valuation to $2.67. The city tax rate went from $4.36 to $4.40.
The auditor's office said it was too early to say how the increased rate would affect tax bills due this spring. The new figures won't be plugged into the county's system until next week at the earliest.
It's also hard to say what effect, if any, government spending had on rates. County government, for example, set a budget that was $500,000 under its maximum levy of $20.5 million, Deputy Auditor Donna Patterson noted.
That means some rates might be up slightly because assessed values are down for some areas. Tax rates go up when assessed values go down.
While the overall assessed value of all the property in the county was $3.222 billion -- up from $3.214 billion last year -- the assessed value of property in the city was down from $1.631 billion last year to $1.609 billion this year, Patterson said.
Chuck Ward of PSC Associates, which has a contract to assess property for Delaware County, said no major taxable structures were demolished, and thus removed from the tax rolls, in the past year.
The city's former Chevrolet plant came off the tax rolls in previous years after it was razed.
Ward did note the overall county rate could be affected by a big increase in the value of agricultural land, which dominates areas of Delaware County outside the city, where values went up.
Agricultural land values, set by the Department of Local Government Finance, went up from $1,290 an acre to $1,500 an acre in the past year, Ward said.
Ward said the various factors -- property owner appeals over assessed values, a small amount of demolition and a lack of new construction -- play a role in assessed values.
Among tax rates around the county, most towns and townships outside Center Township will see lower tax rates. Yorktown's rate, for example, drops by 7 cents to $2.76.
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2012204070314
The Indianapolis Star Asks: What Should Indianapolis do with the Windfall?
An excerpt from a lengthy story in today's Indianapolis Star:
The state's error resulted in lost revenue in the eight-county metro area ranging from $1.1 million in Shelby County to $33.8 million in Marion County.
Add in interest, plus the expected increase in regular tax distributions the rest of the year that will result from the programming error's correction, and that means $55 million extra for Marion County, according to Indianapolis Mayor Greg Ballard's office.
Of that, the biggest chunk, $41.3 million, will go into the city-county general operating fund, which covers day-to-day spending. (It accounted for $570 million of this year's budget.)
How to spend the unexpected money set off an immediate public battle.
Ballard, a Republican, wants to save all of the money for next year's budget. He's been staring down a projected $50 million to $70 million preliminary deficit in 2013.
If the city holds on to the extra tax money, it could nearly offset even the higher end of the deficit range. That's because, besides recouping extra county income tax money from 2011 and this year, the state's revision has increased expected revenue in 2013 by $23 million.
Altogether, that's $64.3 million.
But City-County Council President Maggie Lewis and other leaders of the council's Democratic majority see a chance to solve a more immediate disaster.
Namely: $32 million in projected combined shortfalls this year in the Indianapolis public safety and Marion County sheriff's budgets.
A statement from Lewis called the unexpected tax money "a perfect opportunity to close the funding gap and keep our citizens safe." She added: "Public safety is a critical function of local government, and the safety of our citizens has to be our top priority."
But Ballard portrayed such thinking as shortsighted.
"I want people to live within their budgets this year," he said. "I think there are efficiencies to be had in public safety, and I'm expecting that everybody will be coming together to do that."
He argued that such austerity would prepare departments and agencies for a lean 2013.
That already has been happening. Public Safety Director Frank Straub told the council last week that he thinks he can overcome his $15.1 million shortfall by year's end by reining in spending and putting off some big-ticket purchases, including replacing aging patrol cars.
However, Marion County Sheriff John Layton, a Democrat, has portrayed his troubles as more intractable, particularly spiraling inmate and arrestee medical costs.
Ballard could hold the upper hand because his city controller is the financial gatekeeper for city and county finances. The mayor also has veto power over the council.
Council Minority Leader Michael McQuillen, who leads Ballard's fellow Republicans, said in his own statement Friday -- addressed to Lewis -- that GOP members aren't ready to divert the county income tax windfall to this year's shortfalls.
"Reductions in spending and other belt-tightening measures will be considered long before throwing taxpayer dollars at our budgetary problems," McQuillen said.
The state's error resulted in lost revenue in the eight-county metro area ranging from $1.1 million in Shelby County to $33.8 million in Marion County.
Add in interest, plus the expected increase in regular tax distributions the rest of the year that will result from the programming error's correction, and that means $55 million extra for Marion County, according to Indianapolis Mayor Greg Ballard's office.
Of that, the biggest chunk, $41.3 million, will go into the city-county general operating fund, which covers day-to-day spending. (It accounted for $570 million of this year's budget.)
How to spend the unexpected money set off an immediate public battle.
Ballard, a Republican, wants to save all of the money for next year's budget. He's been staring down a projected $50 million to $70 million preliminary deficit in 2013.
If the city holds on to the extra tax money, it could nearly offset even the higher end of the deficit range. That's because, besides recouping extra county income tax money from 2011 and this year, the state's revision has increased expected revenue in 2013 by $23 million.
Altogether, that's $64.3 million.
But City-County Council President Maggie Lewis and other leaders of the council's Democratic majority see a chance to solve a more immediate disaster.
Namely: $32 million in projected combined shortfalls this year in the Indianapolis public safety and Marion County sheriff's budgets.
A statement from Lewis called the unexpected tax money "a perfect opportunity to close the funding gap and keep our citizens safe." She added: "Public safety is a critical function of local government, and the safety of our citizens has to be our top priority."
But Ballard portrayed such thinking as shortsighted.
"I want people to live within their budgets this year," he said. "I think there are efficiencies to be had in public safety, and I'm expecting that everybody will be coming together to do that."
He argued that such austerity would prepare departments and agencies for a lean 2013.
That already has been happening. Public Safety Director Frank Straub told the council last week that he thinks he can overcome his $15.1 million shortfall by year's end by reining in spending and putting off some big-ticket purchases, including replacing aging patrol cars.
However, Marion County Sheriff John Layton, a Democrat, has portrayed his troubles as more intractable, particularly spiraling inmate and arrestee medical costs.
Ballard could hold the upper hand because his city controller is the financial gatekeeper for city and county finances. The mayor also has veto power over the council.
Council Minority Leader Michael McQuillen, who leads Ballard's fellow Republicans, said in his own statement Friday -- addressed to Lewis -- that GOP members aren't ready to divert the county income tax windfall to this year's shortfalls.
"Reductions in spending and other belt-tightening measures will be considered long before throwing taxpayer dollars at our budgetary problems," McQuillen said.
...
http://www.indystar.com/apps/pbcs.dll/article?AID=2012204070322
State Returns $1.1 Million to Shelby County
From the Shelbyville News:
Shelby County will get more than $1.1 million back after the state discovered it shorted most of Indiana's counties in funds due to a computer glitch.
The money could help out financially strapped entities, such as the City of Shelbyville, because much of the money municipalities will get can be used in their general funds.
The 91 affected counties will receive a total of $206 million and about $500,000 in interest from local option income tax funds. Those funds should arrive sometime in the next few days, according to an Association of Indiana Counties memo Thursday.
LOIT is a tax counties can charge on income to help generate revenue for services. In Shelby County, the rate is about 0.35 percent of a worker's taxable income.
The state didn't properly count some individiuals who filed quarterly income reports. About 11 percent of taxpayers are required to estimate what they're supposed to pay for county and state income taxes quarterly and write these amounts on separate lines. Typical examples include people who are retired people or self-employed.
The miscalculation was for fiscal year 2011 and the first four months of 2012.
For Shelby County it means the county will collect an extra $918,000 for 2011 and $230,000 for 2012.
The money will be distributed to Shelbyville and Shelby County towns, and some of it will go to schools and other tax collecting entities,County Auditor Amy Glackman said. It's unclear yet how much each entity will get. Glackman said the state will send her directions on how to disperse it.
For those in charge of local government's finances, it was good news.
"It was good to hear really, we'll just have to keep our fingers crossed and hope it turns out well," Shelbyville Clerk-Treasurer Frank Zerr said. "We'll gladly take what we can get when it comes to revenue."
...
http://www.shelbynews.com/articles/2012/04/06/news/doc4f7e06df0d435375200666.txt
Shelby County will get more than $1.1 million back after the state discovered it shorted most of Indiana's counties in funds due to a computer glitch.
The money could help out financially strapped entities, such as the City of Shelbyville, because much of the money municipalities will get can be used in their general funds.
The 91 affected counties will receive a total of $206 million and about $500,000 in interest from local option income tax funds. Those funds should arrive sometime in the next few days, according to an Association of Indiana Counties memo Thursday.
LOIT is a tax counties can charge on income to help generate revenue for services. In Shelby County, the rate is about 0.35 percent of a worker's taxable income.
The state didn't properly count some individiuals who filed quarterly income reports. About 11 percent of taxpayers are required to estimate what they're supposed to pay for county and state income taxes quarterly and write these amounts on separate lines. Typical examples include people who are retired people or self-employed.
The miscalculation was for fiscal year 2011 and the first four months of 2012.
For Shelby County it means the county will collect an extra $918,000 for 2011 and $230,000 for 2012.
The money will be distributed to Shelbyville and Shelby County towns, and some of it will go to schools and other tax collecting entities,County Auditor Amy Glackman said. It's unclear yet how much each entity will get. Glackman said the state will send her directions on how to disperse it.
For those in charge of local government's finances, it was good news.
"It was good to hear really, we'll just have to keep our fingers crossed and hope it turns out well," Shelbyville Clerk-Treasurer Frank Zerr said. "We'll gladly take what we can get when it comes to revenue."
...
http://www.shelbynews.com/articles/2012/04/06/news/doc4f7e06df0d435375200666.txt
Kokomo Tribune Argues that Revenue Error "Rattles Local Officerholders' Faith in System"
It wasn’t the Mega Millions lottery, but 91 of Indiana’s counties will be receiving millions of unexpected dollars as a result of a computing error at the Indiana Department of Revenue.
And that hasn’t exactly inspired local confidence in the state’s bookkeeping abilities.
The state agency announced Thursday that it failed to distribute to the counties the appropriate local income and economic development income taxes for 2011 and 2012. The amount being returned to the counties amounts to $205 million.
This was the second mistake reported by the Department of Revenue in the past few months. In December, the department said it found an additional $320 million in state revenues.
“I know they’ve had computer problems in the past, [but I] thought they were resolved,” Howard County Treasurer Martha Lake said. “They need someone who is dedicated to making sure the computer software is working properly. The system requires strict oversight and should be audited every year. This is good news for the county.”
Although there are 92 counties in Indiana, one county has not implemented a county option income tax.
Residential property owners should see a reduced property tax bill in 2013 because the local option income tax revenues are designated to provide tax relieve through a Homestead Credit.
Howard County is expected to receive $3.7 million in additional county option and local option income taxes and $533,909 in county economic development income tax revenues. Those funds will be distributed to several local taxing entities including the city of Kokomo, Howard County, Greentown and Russiaville.
Lake said the county will receive a check by April 12 for $1.5 million for the income tax distribution in 2011 and $741,893 for the first four months of this year, the remaining balance will be paid in monthly installments.
The county will also receive $215,371 for the 2011 EDIT distribution and $106,179 for the first four months of 2012.
Richard Miller, president of the Howard County Council, said errors by the state make it difficult for counties to formulate a budget.
Miller said over the years, the county puts together a budget without knowing exactly how much money was available but rather on estimates from the state.
He said the county shouldn’t plan on spending the additional revenues in the near future.
“It would be foolhardy to think we have found new money,” Miller said, “let’s look for a way to spend it. I’m in no rush.”
He said the additional funds could be used to purchase new voting machines or to provide county employees with a raise or bonus.
Commissioner Paul Wyman said with the tight budget, the state money will give the county some breathing room.
“It makes a big difference during the budget process,” he said. “When we’re doing the budget work, you wonder if we’re using real numbers.”
Both Wyman and Miller raised concerns over the money the state contends the counties owe from a previous overpayment.
At one time, state officials said the counties were overpaid by $507 million, but that figure has been adjusted to $147 million.
Lake said the state has adjusted the amount owed by Howard County from $11 million to $4.2 million.
Those funds will be repaid to the state based on the growth of local income taxes. The base year being used is 2011 collections and any collections over that amount will go toward the debt.
Wyman said he wanted to settle up now if county owes the state money.
“It makes sense to settle it,” he said. “If we owe the state $4 million and they’re sending $3.7 million, why not just send them a check for $300,000.”Miller said he has never received an explanation on how that figure was arrived at by the state.
“That number has been hanging over our head,” he said. “We have no way of checking our revenues. We rely on people that don’t seem to know what’s going on. “
Wyman said the fact that the state made an error is troubling.
“When the state collects the money and sends it back, it makes people want to second guess,” he said. “I hope they resolve the problems.”
Miami County
In Miami County, Auditor Jane Lilly said the state is returning $1.2 million in county option income taxes and $254,000 in EDIT funds from 2011 and the first four months of this year.
“When I heard the news, I said a prayer of thanks,” Lilly said. “We’ve been praying for this for a long time.”
“It’s marvelous news,” said Treasurer Becky Morris.
Ralph Duckwall, 2nd District councilman, said the state should mail the checks out by April 12. He said some of the money could possibly be placed in the rainy day fund, which would allow the county to use it as discretionary spending.
The extra funding is especially good news for Miami County, which cut $1.1 million from the general fund in March after the state mandated the budget reduction. The cuts required four departments to terminate personnel.
“We’ve taken so many hits recently, so this is really exciting news,” Lilly said. “But it’s unfortunate we’ve had to suffer for the last eight months over budget cuts. This will give us a chance of surviving.”
Morris said the returned money will hopefully allow the county to avoid further personnel reductions in the 2013 budget.
Duckwall said the $206 million mistake reinforces the lack of confidence many counties have in state decisions and supports the idea that counties should have more autonomy with their finances.
He said no specific spending decisions have been made with the returned funds.
But despite the upcoming influx of money, Lilly said the county still needs to remain cautious about future spending given the recuperating economy.
“We’re going to keep our heads straight and remain fiscally responsible,” she said.
Tipton County
Tipton County is looking at receiving $893,518 in income tax revenues and $263,670 in EDIT revenues.
“It’s like find missing money,” Commissioner Mike Cline said.
Cline said he believes the county will wait and see what it takes to pay the bills in 2012 before any new spending is approved.
“Our finances are tight,” he said.
Cline said it’s a concern any time there is an error.
“They found the error,” he said. “The state is taking positive steps to correct the problem.”
http://kokomotribune.com/local/x2108288938/Another-mistake-rattles-local-officeholders-faith-in-system
And that hasn’t exactly inspired local confidence in the state’s bookkeeping abilities.
The state agency announced Thursday that it failed to distribute to the counties the appropriate local income and economic development income taxes for 2011 and 2012. The amount being returned to the counties amounts to $205 million.
This was the second mistake reported by the Department of Revenue in the past few months. In December, the department said it found an additional $320 million in state revenues.
“I know they’ve had computer problems in the past, [but I] thought they were resolved,” Howard County Treasurer Martha Lake said. “They need someone who is dedicated to making sure the computer software is working properly. The system requires strict oversight and should be audited every year. This is good news for the county.”
Although there are 92 counties in Indiana, one county has not implemented a county option income tax.
Residential property owners should see a reduced property tax bill in 2013 because the local option income tax revenues are designated to provide tax relieve through a Homestead Credit.
Howard County is expected to receive $3.7 million in additional county option and local option income taxes and $533,909 in county economic development income tax revenues. Those funds will be distributed to several local taxing entities including the city of Kokomo, Howard County, Greentown and Russiaville.
Lake said the county will receive a check by April 12 for $1.5 million for the income tax distribution in 2011 and $741,893 for the first four months of this year, the remaining balance will be paid in monthly installments.
The county will also receive $215,371 for the 2011 EDIT distribution and $106,179 for the first four months of 2012.
Richard Miller, president of the Howard County Council, said errors by the state make it difficult for counties to formulate a budget.
Miller said over the years, the county puts together a budget without knowing exactly how much money was available but rather on estimates from the state.
He said the county shouldn’t plan on spending the additional revenues in the near future.
“It would be foolhardy to think we have found new money,” Miller said, “let’s look for a way to spend it. I’m in no rush.”
He said the additional funds could be used to purchase new voting machines or to provide county employees with a raise or bonus.
Commissioner Paul Wyman said with the tight budget, the state money will give the county some breathing room.
“It makes a big difference during the budget process,” he said. “When we’re doing the budget work, you wonder if we’re using real numbers.”
Both Wyman and Miller raised concerns over the money the state contends the counties owe from a previous overpayment.
At one time, state officials said the counties were overpaid by $507 million, but that figure has been adjusted to $147 million.
Lake said the state has adjusted the amount owed by Howard County from $11 million to $4.2 million.
Those funds will be repaid to the state based on the growth of local income taxes. The base year being used is 2011 collections and any collections over that amount will go toward the debt.
Wyman said he wanted to settle up now if county owes the state money.
“It makes sense to settle it,” he said. “If we owe the state $4 million and they’re sending $3.7 million, why not just send them a check for $300,000.”Miller said he has never received an explanation on how that figure was arrived at by the state.
“That number has been hanging over our head,” he said. “We have no way of checking our revenues. We rely on people that don’t seem to know what’s going on. “
Wyman said the fact that the state made an error is troubling.
“When the state collects the money and sends it back, it makes people want to second guess,” he said. “I hope they resolve the problems.”
Miami County
In Miami County, Auditor Jane Lilly said the state is returning $1.2 million in county option income taxes and $254,000 in EDIT funds from 2011 and the first four months of this year.
“When I heard the news, I said a prayer of thanks,” Lilly said. “We’ve been praying for this for a long time.”
“It’s marvelous news,” said Treasurer Becky Morris.
Ralph Duckwall, 2nd District councilman, said the state should mail the checks out by April 12. He said some of the money could possibly be placed in the rainy day fund, which would allow the county to use it as discretionary spending.
The extra funding is especially good news for Miami County, which cut $1.1 million from the general fund in March after the state mandated the budget reduction. The cuts required four departments to terminate personnel.
“We’ve taken so many hits recently, so this is really exciting news,” Lilly said. “But it’s unfortunate we’ve had to suffer for the last eight months over budget cuts. This will give us a chance of surviving.”
Morris said the returned money will hopefully allow the county to avoid further personnel reductions in the 2013 budget.
Duckwall said the $206 million mistake reinforces the lack of confidence many counties have in state decisions and supports the idea that counties should have more autonomy with their finances.
He said no specific spending decisions have been made with the returned funds.
But despite the upcoming influx of money, Lilly said the county still needs to remain cautious about future spending given the recuperating economy.
“We’re going to keep our heads straight and remain fiscally responsible,” she said.
Tipton County
Tipton County is looking at receiving $893,518 in income tax revenues and $263,670 in EDIT revenues.
“It’s like find missing money,” Commissioner Mike Cline said.
Cline said he believes the county will wait and see what it takes to pay the bills in 2012 before any new spending is approved.
“Our finances are tight,” he said.
Cline said it’s a concern any time there is an error.
“They found the error,” he said. “The state is taking positive steps to correct the problem.”
http://kokomotribune.com/local/x2108288938/Another-mistake-rattles-local-officeholders-faith-in-system
Lake County Commissioner Blames State for Budget Shortfalls
From the Northwest Indiana Times:
Lake County Commissioner Gerry Scheub began his series Thursday of six town hall-style meetings by talking about how the county is coping in a troubled economy.
A crowd of about 30 asked few questions after Scheub discussed how county officials are dealing with reduced property taxes and unfunded mandates.
"Over the past four years, we've reduced county costs more than any other county in the state," Scheub said.
Spending cuts have been dramatic and hundreds of county employees have been laid off, he said.
Still, Scheub said, the budget is an uphill battle because of more money heading to the state.
"The state is using us to balance their budget ... 75 percent of our casino money now goes to the state. They keep raising it," he said.
"The state keeps taking our road money," he said. "Every year, you're getting less and less."
Lake County Highway Department Superintendent Marc Malczewski agreed.
"It's a tragedy. ... We've seen our roads go to pot. The state Legislature refuses ... to provide funding," he said.
The last gasoline tax increase was in 2003. In that time, materials for road maintenance and replacement have shot up 128 percent, he said.
Scheub said the county averages replacement of 3.5 miles of road a year, based on funding.
"I want to file a lawsuit," he said.
...
Read more: http://www.nwitimes.com/news/local/lake/scheub-state-takes-too-much-money-from-county/article_52c5e6a6-d3ce-5657-aad9-eb5ff3ed61ab.html#ixzz1rGvrzzYU
Lake County Commissioner Gerry Scheub began his series Thursday of six town hall-style meetings by talking about how the county is coping in a troubled economy.
A crowd of about 30 asked few questions after Scheub discussed how county officials are dealing with reduced property taxes and unfunded mandates.
"Over the past four years, we've reduced county costs more than any other county in the state," Scheub said.
Spending cuts have been dramatic and hundreds of county employees have been laid off, he said.
Still, Scheub said, the budget is an uphill battle because of more money heading to the state.
"The state is using us to balance their budget ... 75 percent of our casino money now goes to the state. They keep raising it," he said.
"The state keeps taking our road money," he said. "Every year, you're getting less and less."
Lake County Highway Department Superintendent Marc Malczewski agreed.
"It's a tragedy. ... We've seen our roads go to pot. The state Legislature refuses ... to provide funding," he said.
The last gasoline tax increase was in 2003. In that time, materials for road maintenance and replacement have shot up 128 percent, he said.
Scheub said the county averages replacement of 3.5 miles of road a year, based on funding.
"I want to file a lawsuit," he said.
...
Read more: http://www.nwitimes.com/news/local/lake/scheub-state-takes-too-much-money-from-county/article_52c5e6a6-d3ce-5657-aad9-eb5ff3ed61ab.html#ixzz1rGvrzzYU
Department of Local Government Finance Issues Guidance on Solar Power Devices Deduction
I. Introduction
Section 15 of House Enrolled Act 1072 (“HEA 1072”) provides for a property tax deduction for solar power devices installed after December 31, 2011. The effective date for the deduction was made retroactive to January 1, 2012.
This memorandum provides an overview of the solar power device deduction under the new IC 6-1.1-12-26.1, the deduction filing requirements of IC 6-1.1-12-27.1, and the availability of the deduction for taxes first due and payable in 2013.
II. Solar Power Device Deduction (IC 6-1.1-12-26.1)
Who qualifies for the deduction?
Indiana Code 6-1.1-12-26.1 provides that a person who is the owner of real property equipped with a solar power device that is assessed as a real property improvement, distributable property under IC 6-1.1-8, or personal property may receive the deduction if the applicant for the deduction:
(1) owns the real property, mobile home, or manufactured home or owns the solar power device;
(2) is buying the real property, mobile home, manufactured home, or solar power device under contract; or
(3) is leasing the real property from the real property owner and be subject to assessment and property taxation with respect to the solar power device;
on the date the application is filed.
This deduction is not applicable to a solar power device owned or operated by a person who provides electricity at wholesale or retail for consideration unless:
(1) the owner participates in a net metering or feed-in-tariff program offered by an electric utility with respect to the solar power device; or
(2) the applicant is the owner or host of the solar power device site and a person consumes on the site the equivalent amount of electricity that is generated by the solar power device on an annual basis even if the electricity is sold to a public utility, including a solar power device directly serving a public utility’s business operations site.
What type of device qualifies for the deduction?
Assuming all other requirements are met, a device qualifies for the deduction if it is a solar power device such as a solar thermal, a photovoltaic, or other solar energy system, designed to use the radiant light or heat from the sun to produce electricity.
What is the deduction amount?
If the solar power device is assessed as a real property improvement, the deduction is the remainder of :
(1)the real property assessed value with the device installed; minus
(2)the real property assessed value without the device installed.
Example: John Doe has a solar power device installed on his property. With the device installed, the property has an assessed value of $200,000. Without the device installed, John Doe’s property has an assessed value of $185,000. The deduction equals the remainder of these two values, which is $15,000.
If the solar power device is assessed as either distributable or personal property, the allowable deduction is equal to the assessed value of the solar power device itself.
Example: John Doe owns a solar power device used by a local public utility. The value of the solar power device is $7,500. John Doe is entitled to a deduction equal to the value of the solar power device, which is $7,500.
III. Deduction Filing Requirements (IC 6-1.1-12-27.1)
HEA 1072 amends IC 6-1.1-12-27.1 to provide filing requirements for the solar power device deduction. Specifically, IC 6-1.1-12-27.1 requires a person to file an application for the deduction with the auditor of the county in which the solar power device is subject to assessment. The applicant must use the application prescribed by the Department of Local Government Finance. With respect to real property or a solar power device that is assessed as distributable or personal property, the person must file the statement during the year for which the person desires to obtain the deduction. With respect to a mobile home not assessed as real property, the person must file the statement during the twelve months before March 31 of each year for which the person desires to obtain the deduction.
The application may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing. On verification of the application by the township assessor (if any) or the county assessor, the county auditor must allow the deduction.
IV. Availability of Deduction for Taxes Due in 2013 (non-code Section 126)
Non-code Section 126 of HEA 1072 provides that the deduction applies to property taxes first due and payable after 2012. An application filed before September 1, 2012 is considered timely filed for purposes of obtaining the deduction in 2012 for property taxes first due and payable in 2013. Section 126 expires January 1, 2014.
Friday, April 6, 2012
Revenue Offers Tax Assistance to Victims of March Tornados
The Indiana Department of Revenue has established specific tax support policies
for individual and business taxpayers in those areas of southern Indiana most
affected by the March 2, 2012, tornadoes.
The Department will work with any taxpayer to provide assistance in filing taxes, receiving a replacement refund check, arranging for extended payments against existing obligations, coordinating late filing of individual income tax estimated payments, obtaining duplicate past filings for official purposes (for assistance, loans, etc.) or duplicate supporting documents or other assistance.
Any taxpayer in the following ZIP codes can call our special telephone number and leave their name, problem, and a return telephone number. A representative of the Department will return their call within 24 hours to provide guidance and assistance.
The special telephone contact number is 317-233-5212.
Business taxpayers who need assistance in filing any business taxes, including annual filing, sales tax filing or withholding filing and payments, can also use this contact number for help.
The ZIP codes representing affected portions of Clark, Harrison, Jefferson, Ripley , Scott, Warrick and Washington counties are:
47023, 47037, 47106, 47120, 47126, 47138, 47141, 47143, 47147, 47162, 47163, 47165, 47167, 47243, 47630
Taxpayers in these ZIP codes who cannot file annual tax returns on time can obtain a special waiver to file later without accruing penalties or interest, but taxpayers must contact the Department directly to obtain this waiver.
Additional information is also available online at www.in.gov/dor/4627.htm.
http://www.in.gov/dor/4635.htm
The Department will work with any taxpayer to provide assistance in filing taxes, receiving a replacement refund check, arranging for extended payments against existing obligations, coordinating late filing of individual income tax estimated payments, obtaining duplicate past filings for official purposes (for assistance, loans, etc.) or duplicate supporting documents or other assistance.
Any taxpayer in the following ZIP codes can call our special telephone number and leave their name, problem, and a return telephone number. A representative of the Department will return their call within 24 hours to provide guidance and assistance.
The special telephone contact number is 317-233-5212.
Business taxpayers who need assistance in filing any business taxes, including annual filing, sales tax filing or withholding filing and payments, can also use this contact number for help.
The ZIP codes representing affected portions of Clark, Harrison, Jefferson, Ripley , Scott, Warrick and Washington counties are:
47023, 47037, 47106, 47120, 47126, 47138, 47141, 47143, 47147, 47162, 47163, 47165, 47167, 47243, 47630
Taxpayers in these ZIP codes who cannot file annual tax returns on time can obtain a special waiver to file later without accruing penalties or interest, but taxpayers must contact the Department directly to obtain this waiver.
Additional information is also available online at www.in.gov/dor/4627.htm.
http://www.in.gov/dor/4635.htm
Clark County to Receive $4.1 Million
From the Jeffersonville News and Tribune:
...
Clark County Auditor R. Monty Snelling said the error by the state will result in more than $4 million coming back to Clark County.
“It’s very good news,” he said.
The state owes the county funding from County Economic Development Income Tax and County Adjusted Gross Income Tax distributions in 2011 and for the first three months of 2012, totaling $4,134,893.
Floyd County will receive $2,739,253 due to the state’s error. Floyd County Council President Ted Heavrin was pleasantly surprised by the announcement. Floyd County has been bracing for a third David Camm murder trial which officials said will cost about $1 million.
“I think it’s great,” said Steve Bush, president of the Floyd County Commissioners. “It will give us some money for bridges and roads, and will give us some extra money to do some things.”
Floyd County Auditor Darin Coddington said he was not able to comment on the matter until he receives a directive from the state as to how to distribute the funds to the different municipalities. He said no money had been received yet.
Clark County Councilman Brian Lenfert said the auditor’s office has already received notice of the electronic funds transfer made to the county.
“It helps balance the budget for this year and maybe next,” he said. “That’s the thing, it’s a one-time influx of money. It helps the county’s budget situation on a short-term basis.”
Snelling said he expects Clark County government will receive about $1 million or more as a result of the error.
He explained that all of the municipalities within the county will receive some funds, but an exact amount will not be known until the county gets its percentages for distributions.
...
http://newsandtribune.com/local/x1789079878/State-s-error-leads-to-windfall-for-Indiana-counties
...
Clark County Auditor R. Monty Snelling said the error by the state will result in more than $4 million coming back to Clark County.
“It’s very good news,” he said.
The state owes the county funding from County Economic Development Income Tax and County Adjusted Gross Income Tax distributions in 2011 and for the first three months of 2012, totaling $4,134,893.
Floyd County will receive $2,739,253 due to the state’s error. Floyd County Council President Ted Heavrin was pleasantly surprised by the announcement. Floyd County has been bracing for a third David Camm murder trial which officials said will cost about $1 million.
“I think it’s great,” said Steve Bush, president of the Floyd County Commissioners. “It will give us some money for bridges and roads, and will give us some extra money to do some things.”
Floyd County Auditor Darin Coddington said he was not able to comment on the matter until he receives a directive from the state as to how to distribute the funds to the different municipalities. He said no money had been received yet.
Clark County Councilman Brian Lenfert said the auditor’s office has already received notice of the electronic funds transfer made to the county.
“It helps balance the budget for this year and maybe next,” he said. “That’s the thing, it’s a one-time influx of money. It helps the county’s budget situation on a short-term basis.”
Snelling said he expects Clark County government will receive about $1 million or more as a result of the error.
He explained that all of the municipalities within the county will receive some funds, but an exact amount will not be known until the county gets its percentages for distributions.
...
http://newsandtribune.com/local/x1789079878/State-s-error-leads-to-windfall-for-Indiana-counties
Delaware County Gets $2 Million Back from State
From the Muncie Star Press:
Thanks to a tax distribution error by the state, units of government in Delaware County will receive a collective $2 million refund in tax revenue.
The Delaware County auditor's office said Thursday it had received notice that $1.2 million in county option income tax (COIT) revenue and $939,000 in economic development income tax (EDIT) revenue had been collected by the state but not distributed.
Cash-strapped county government won't benefit from a huge windfall, however: The money will be distributed among many local units of government.
City and county government will get the lion's share -- the county gets 42 percent of local COIT, for example, while the city gets 32 percent -- but some funds will be distributed to other taxing units.
For EDIT revenue, the county gets 59 percent, the city gets 41 percent and the town of Gaston gets less than 1 percent. When EDIT was created 20 years ago, all Delaware County towns except Gaston pooled their EDIT funds with county government.
"It's roughly a month and a half" of regular tax distribution from the state, Deputy Auditor Donna Patterson said of the withheld tax revenue, which is deducted from local paychecks.
Patterson said she had not yet figured the exact amounts to be distributed to local governments and other units.
The interest on the withheld funds amounted to about $3,000, she said, and would be included in the amount deposited in the county's bank accounts as early as Monday.
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2012204060309
Thanks to a tax distribution error by the state, units of government in Delaware County will receive a collective $2 million refund in tax revenue.
The Delaware County auditor's office said Thursday it had received notice that $1.2 million in county option income tax (COIT) revenue and $939,000 in economic development income tax (EDIT) revenue had been collected by the state but not distributed.
Cash-strapped county government won't benefit from a huge windfall, however: The money will be distributed among many local units of government.
City and county government will get the lion's share -- the county gets 42 percent of local COIT, for example, while the city gets 32 percent -- but some funds will be distributed to other taxing units.
For EDIT revenue, the county gets 59 percent, the city gets 41 percent and the town of Gaston gets less than 1 percent. When EDIT was created 20 years ago, all Delaware County towns except Gaston pooled their EDIT funds with county government.
"It's roughly a month and a half" of regular tax distribution from the state, Deputy Auditor Donna Patterson said of the withheld tax revenue, which is deducted from local paychecks.
Patterson said she had not yet figured the exact amounts to be distributed to local governments and other units.
The interest on the withheld funds amounted to about $3,000, she said, and would be included in the amount deposited in the county's bank accounts as early as Monday.
http://www.thestarpress.com/apps/pbcs.dll/article?AID=2012204060309
Tippecanoe County Receives Almost $5 Million from State
From the Lafayette Journal & Courier:
...
"The total amount we got was $4,822,447.03," said Tippecanoe County Treasurer Bob Plantenga, noting that the funds should be transferred on April 10.
That breaks down to $2,618,796.72 for county option income taxes and $2,193,386 for economical development income taxes, Plantenga said.
The $10,264.31 over the amount distributed and the accounting of what's owed is presumed to be interest, said Plantenga, who learned of the state's error after a Thursday morning call from the Journal & Courier.
The county option income tax is distributed to all the local taxing entities in the county, including the bus district and library, but it does not include school districts, Plantenga said. For the county, its portion will go into the general fund.
The economic development income tax, which is spent only on economic development ventures, will be distributed to the county, cities and towns.
"The state will tell the auditor what the breakdown is," Plantenga said. "The percentage is based on adjusted property tax levy."
This means that Lafayette and Tippecanoe County will receive the largest slices of the pie, followed by West Lafayette.
Lafayette Controller Mike Jones said Thursday that he hasn't seen the amount coming to Lafayette, but he believes it will be "significant." He said he was reserving judgment as to the error but added he was disappointed that it had happened.
"This is money that we certainly could use," Jones said. "It's disappointing, to say the least, that we keep finding money that could be coming back."
"I'm glad West Lafayette tax dollars are coming home," West Lafayette Clerk-treasurer Judy Rhodes said Thursday afternoon.
...
http://www.jconline.com/apps/pbcs.dll/article?AID=2012204060319
...
"The total amount we got was $4,822,447.03," said Tippecanoe County Treasurer Bob Plantenga, noting that the funds should be transferred on April 10.
That breaks down to $2,618,796.72 for county option income taxes and $2,193,386 for economical development income taxes, Plantenga said.
The $10,264.31 over the amount distributed and the accounting of what's owed is presumed to be interest, said Plantenga, who learned of the state's error after a Thursday morning call from the Journal & Courier.
The county option income tax is distributed to all the local taxing entities in the county, including the bus district and library, but it does not include school districts, Plantenga said. For the county, its portion will go into the general fund.
The economic development income tax, which is spent only on economic development ventures, will be distributed to the county, cities and towns.
"The state will tell the auditor what the breakdown is," Plantenga said. "The percentage is based on adjusted property tax levy."
This means that Lafayette and Tippecanoe County will receive the largest slices of the pie, followed by West Lafayette.
Lafayette Controller Mike Jones said Thursday that he hasn't seen the amount coming to Lafayette, but he believes it will be "significant." He said he was reserving judgment as to the error but added he was disappointed that it had happened.
"This is money that we certainly could use," Jones said. "It's disappointing, to say the least, that we keep finding money that could be coming back."
"I'm glad West Lafayette tax dollars are coming home," West Lafayette Clerk-treasurer Judy Rhodes said Thursday afternoon.
...
http://www.jconline.com/apps/pbcs.dll/article?AID=2012204060319
Wayne County Area to See $1.8 Million from State Revenue Error
From the Richmond Palladium-Item:
Because of the most recent error, Wayne County taxing units will share $1.8 million in local income taxes, money collected by the state that should have been distributed to counties in 2011 and in the first three months of 2012.
Union County taxing units will share about $115,000. Randolph County units will receive $656,500. Accrued interest through Thursday also will be paid on those funds.
The revelation that the Department of Revenue owes Wayne County money is good news, Wayne County Council President Gary Saunders said, especially since the DOR claimed last year that counties owed the state because of its overpayment of local income taxes.
"Last year, they said we had to pay back money. When I looked at those figures, it didn't sound like we should be losing any money," Saunders said. "I wasn't comfortable with it. It seemed like we should have been collecting more, not less."
Wayne County employees are now in their third year without a raise. Saunders said there likely won't be a shortage of ideas for ways to use some of the extra funding.
"We've been so cautious the last two years about any spending," Saunders said. "We've taken a frugal attitude. We'll look at this real hard before we make any decisions."
Richmond Mayor Sally Hutton was cautiously optimistic about the additional funds, estimated at about $450,000 for the city.
In the past, the state has required extra funds go to the Rainy Day Fund, but since this money should have been paid last year, Hutton said she was hopeful it might be deposited in the general fund.
...
The error also affects the Trust Balance Accounts for local income tax collections to which Saunders referred. The negative balances many counties show on their accounts will be much less, according to the IAC email. Counties with deficits faced flat-lined payments or reductions to make up the losses.
"The $509 million statewide deficit at the start of 2011 is actually about $147 million deficit," AIC email said. "This will mean several counties are now showing positive balances."
Richmond controller Tammy Glenn said Richmond was facing reduced income tax payments to make up for the supposed deficit in the trust account.
"We expected to be stuck with that, even as job growth occurred," Glenn said. "Without the income taxes, everything comes out of the general fund, which means streets and parks end up suffering."
...
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012204060322
Because of the most recent error, Wayne County taxing units will share $1.8 million in local income taxes, money collected by the state that should have been distributed to counties in 2011 and in the first three months of 2012.
Union County taxing units will share about $115,000. Randolph County units will receive $656,500. Accrued interest through Thursday also will be paid on those funds.
The revelation that the Department of Revenue owes Wayne County money is good news, Wayne County Council President Gary Saunders said, especially since the DOR claimed last year that counties owed the state because of its overpayment of local income taxes.
"Last year, they said we had to pay back money. When I looked at those figures, it didn't sound like we should be losing any money," Saunders said. "I wasn't comfortable with it. It seemed like we should have been collecting more, not less."
Wayne County employees are now in their third year without a raise. Saunders said there likely won't be a shortage of ideas for ways to use some of the extra funding.
"We've been so cautious the last two years about any spending," Saunders said. "We've taken a frugal attitude. We'll look at this real hard before we make any decisions."
Richmond Mayor Sally Hutton was cautiously optimistic about the additional funds, estimated at about $450,000 for the city.
In the past, the state has required extra funds go to the Rainy Day Fund, but since this money should have been paid last year, Hutton said she was hopeful it might be deposited in the general fund.
...
The error also affects the Trust Balance Accounts for local income tax collections to which Saunders referred. The negative balances many counties show on their accounts will be much less, according to the IAC email. Counties with deficits faced flat-lined payments or reductions to make up the losses.
"The $509 million statewide deficit at the start of 2011 is actually about $147 million deficit," AIC email said. "This will mean several counties are now showing positive balances."
Richmond controller Tammy Glenn said Richmond was facing reduced income tax payments to make up for the supposed deficit in the trust account.
"We expected to be stuck with that, even as job growth occurred," Glenn said. "Without the income taxes, everything comes out of the general fund, which means streets and parks end up suffering."
...
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012204060322
Allen County Leaders Call Revenue Error "Unsettling"
From Benjamin Lanka at the Fort Wayne Journal Gazette:
The latest accounting error by the state will mean millions of dollars in unexpected revenue for Allen County, but some officials questioned why it took so long.
State officials on Thursday said a programming error cost local units of government $206 million in local option income tax revenues in 2011, including $10.1 million for all of Allen County. Information was not yet available about how that $10 million would be split between county government, Fort Wayne and other entities.
County Commissioner Therese Brown said it was good news that the error was in the county's favor, but she joked that maybe it would be wise to save the money in case the state finds another error showing the county owes more money.
"How many times has this happened in the past?" she said. "It's a little frustrating. It's rather unsettling to not feel comfortable in the revenue we should count on to back our budget."
Brown even suggested that it might be wise for counties to investigate handling their own income tax collections, although she said she was unsure how much such an effort would cost.
Mayor Tom Henry said cities and towns across the state have been stretched financially during the national recession, and errors like this only make it harder for everyone.
"It's time, though, for the state to get its financial house in order and get back on track," he said in a prepared statement.
It was the second major error discovered in the Department of Revenue in the past six months. In December, Gov. Mitch Daniels announced the state had found $320 million in misplaced corporate tax revenue.
Fort Wayne City Councilman Mitch Harper, R-4th, said he can't recall anything the size of these two errors in Indiana history, which cause difficulties when trying to put together a proper budget.
"You need to have stability in your income sources," he said.
Matt Greller, executive director of the Indiana Association of Cities and Towns, said he appreciated the state finding the error and acting quickly, but he said the situation does raise concerns for local governments.
"This failure has likely impacted not only the basic delivery of services, but resulted in fewer dollars going to property tax relief and greater property tax cap losses to local units of government," he said in a statement. "When errors of this magnitude occur, it causes a significant loss of confidence in the system."
State Budget Director Adam Horst acknowledged that some local officials had raised concerns that the state distributions last year were inaccurate.
"It's unfortunate this error occurred," he said. "The most important thing that I believe is to restore confidence in that system, provide as much information as possible in as transparent a way as possible."
That is why the state will be paying for an outside audit to examine its processes, a plan Harper supported and Brown called "a most excellent idea."
Horst said the additional money from the state was being processed Thursday and could make it to county accounts by today or Monday. He noted that not only do the locals get a one-time sum of missed payments from 2011, but the error means the base expected for all of 2012 has been adjusted upward, creating additional dollars for future budgeting.
The error also means local governments owe the state far less than originally projected. In 2011, state budget officials told cities, towns and counties the state had overpaid them $500 million in local income tax revenue as a result of the economic recession and the process the state uses to estimate the payments.
After the error, that total debt was dropped to $150 million. Counties that owe money will see their future year revenues remain flat and the state will be reimbursed for any growth in income tax revenue until the debts are paid.
Local governments will still be splitting millions of dollars in unexpected revenues this year, and some officials know just where to spend it.
City Council President Tom Smith, R-1st, had no problems identifying the sole need where the new money should be invested.
"It's the kind of money I would put into the number one need in this community: Fixing roads and streets and sidewalks in neighborhoods," he said.
Harper agreed. "We desperately need concrete and asphalt street reconstruction," he said. "It is a terrible need."
Fort Wayne and Allen County both declined to give their employees raises this year, citing a lack of money to do so. In addition, the county decided to require its employees to contribute 3 percent of their wages toward their retirements – money that had been picked up by the government before. A large rollover balance from the previous year prompted the county to issue employee bonuses to offset this extra expense.
County officials on Thursday were less eager to offer specifics for how the money should be used.
County Councilman Darren Vogt, R-3rd, said it might make sense to use it for economic development to try to increase the long-term revenues of the county. He said he would not support using it for employee raises or other compensation because the county can't count on these large amounts of money to be found every year.
Brown said the commissioners could begin discussing the new revenue at their legislative meeting today, but it would be important to have talks with other people before rushing to spend the money.
"Quite honestly, it should be a collaborative effort between council and commissioners on where those dollars would best be served," she said.
http://www.journalgazette.net/article/20120406/LOCAL/304069968
The latest accounting error by the state will mean millions of dollars in unexpected revenue for Allen County, but some officials questioned why it took so long.
State officials on Thursday said a programming error cost local units of government $206 million in local option income tax revenues in 2011, including $10.1 million for all of Allen County. Information was not yet available about how that $10 million would be split between county government, Fort Wayne and other entities.
County Commissioner Therese Brown said it was good news that the error was in the county's favor, but she joked that maybe it would be wise to save the money in case the state finds another error showing the county owes more money.
"How many times has this happened in the past?" she said. "It's a little frustrating. It's rather unsettling to not feel comfortable in the revenue we should count on to back our budget."
Brown even suggested that it might be wise for counties to investigate handling their own income tax collections, although she said she was unsure how much such an effort would cost.
Mayor Tom Henry said cities and towns across the state have been stretched financially during the national recession, and errors like this only make it harder for everyone.
"It's time, though, for the state to get its financial house in order and get back on track," he said in a prepared statement.
It was the second major error discovered in the Department of Revenue in the past six months. In December, Gov. Mitch Daniels announced the state had found $320 million in misplaced corporate tax revenue.
Fort Wayne City Councilman Mitch Harper, R-4th, said he can't recall anything the size of these two errors in Indiana history, which cause difficulties when trying to put together a proper budget.
"You need to have stability in your income sources," he said.
Matt Greller, executive director of the Indiana Association of Cities and Towns, said he appreciated the state finding the error and acting quickly, but he said the situation does raise concerns for local governments.
"This failure has likely impacted not only the basic delivery of services, but resulted in fewer dollars going to property tax relief and greater property tax cap losses to local units of government," he said in a statement. "When errors of this magnitude occur, it causes a significant loss of confidence in the system."
State Budget Director Adam Horst acknowledged that some local officials had raised concerns that the state distributions last year were inaccurate.
"It's unfortunate this error occurred," he said. "The most important thing that I believe is to restore confidence in that system, provide as much information as possible in as transparent a way as possible."
That is why the state will be paying for an outside audit to examine its processes, a plan Harper supported and Brown called "a most excellent idea."
More money
The error also means local governments owe the state far less than originally projected. In 2011, state budget officials told cities, towns and counties the state had overpaid them $500 million in local income tax revenue as a result of the economic recession and the process the state uses to estimate the payments.
After the error, that total debt was dropped to $150 million. Counties that owe money will see their future year revenues remain flat and the state will be reimbursed for any growth in income tax revenue until the debts are paid.
Local governments will still be splitting millions of dollars in unexpected revenues this year, and some officials know just where to spend it.
City Council President Tom Smith, R-1st, had no problems identifying the sole need where the new money should be invested.
"It's the kind of money I would put into the number one need in this community: Fixing roads and streets and sidewalks in neighborhoods," he said.
Harper agreed. "We desperately need concrete and asphalt street reconstruction," he said. "It is a terrible need."
Fort Wayne and Allen County both declined to give their employees raises this year, citing a lack of money to do so. In addition, the county decided to require its employees to contribute 3 percent of their wages toward their retirements – money that had been picked up by the government before. A large rollover balance from the previous year prompted the county to issue employee bonuses to offset this extra expense.
County officials on Thursday were less eager to offer specifics for how the money should be used.
County Councilman Darren Vogt, R-3rd, said it might make sense to use it for economic development to try to increase the long-term revenues of the county. He said he would not support using it for employee raises or other compensation because the county can't count on these large amounts of money to be found every year.
Brown said the commissioners could begin discussing the new revenue at their legislative meeting today, but it would be important to have talks with other people before rushing to spend the money.
"Quite honestly, it should be a collaborative effort between council and commissioners on where those dollars would best be served," she said.
http://www.journalgazette.net/article/20120406/LOCAL/304069968
Northwest Indiana Times Editorial Supports Level Playing Field for School Referendums
When the campaign was conducted last year on a referendum to rebuild Lake Central High School and to replace Protsman Elementary School, both sides should have competed on a level playing field.
A Sept. 8 email from Lake Central School Corp. Superintendent Larry Veracco, however, indicates that was not the case. District resources were used to promote the tax increase necessary for the building projects, but an opposing group was denied access to those same resources.
The referendum met with the right result, and the outcome should stand. The construction projects are necessary and are scaled correctly. They are necessary for the benefit of the students and of the community. Good schools lead to high property values.
However, the issue of unequal access to district resources, including parents' names and email addresses, deserves attention because other school districts either already have a referendum scheduled or are likely to have one in the future. Duneland School Corp. has a referendum on the ballot this spring for a tax increase that would save teachers' jobs rather than support a construction project.
The closed-door session for area educators on how to run a successful referendum, following Lake Central's victory last fall, adds further impetus for a public airing of Lake Central's mistakes as well as its successful strategy.
Under state law, a public entity like a school district can't deny access to a record it already has generated and shared with another party.
This should be a lesson for area school districts and other units of local government working on their own referendums. Keep the playing field fair to avoid bitter feelings following the vote.
Read more: http://www.nwitimes.com/news/opinion/editorial/editorial-a-lesson-to-learn-on-school-referendums/article_cf70914c-5e47-5cc4-a0c3-4b3feaba556e.html#ixzz1rGxkhjy8
A Sept. 8 email from Lake Central School Corp. Superintendent Larry Veracco, however, indicates that was not the case. District resources were used to promote the tax increase necessary for the building projects, but an opposing group was denied access to those same resources.
The referendum met with the right result, and the outcome should stand. The construction projects are necessary and are scaled correctly. They are necessary for the benefit of the students and of the community. Good schools lead to high property values.
However, the issue of unequal access to district resources, including parents' names and email addresses, deserves attention because other school districts either already have a referendum scheduled or are likely to have one in the future. Duneland School Corp. has a referendum on the ballot this spring for a tax increase that would save teachers' jobs rather than support a construction project.
The closed-door session for area educators on how to run a successful referendum, following Lake Central's victory last fall, adds further impetus for a public airing of Lake Central's mistakes as well as its successful strategy.
Under state law, a public entity like a school district can't deny access to a record it already has generated and shared with another party.
This should be a lesson for area school districts and other units of local government working on their own referendums. Keep the playing field fair to avoid bitter feelings following the vote.
Read more: http://www.nwitimes.com/news/opinion/editorial/editorial-a-lesson-to-learn-on-school-referendums/article_cf70914c-5e47-5cc4-a0c3-4b3feaba556e.html#ixzz1rGxkhjy8
Lake County Working to Implement Property Tax Amnesty Law Passed this Session
From the Northwest Indiana Times:
Lake County is ready to forgive thousands of tax-delinquent property owners.
But there are conditions, the Lake County treasurer said.
Treasurer John Petalas on Thursday asked the County Council to frame the conditions under which past-due tax liabilities will be handled under the state amnesty program, which will run from July 1 to July 2013.
"We don't want the county to get taken advantage of," Petalas said.
He said there are about 14,000 people who owe the county $180 million in back taxes, interest and penalties.
Petalas said the amnesty program will let those people avoid large interest and penalty fees if they agree to repay all taxes they owe from 2011 and previous years and all taxes they will owe for this year and the first half of 2013.
He said the conditions are designed to get people into regular tax-paying habits.
Petalas is urging those interested in amnesty to apply as soon as possible because all delinquencies must be repaid in full by July 1, 2013.
"If they sign up this July, they have 12 months to repay, but if they wait until November they will only have eight months," he said.
Petalas also warned that he intends to hold a tax sale in July or August. Anyone who hasn't been approved for amnesty before the sale faces having their house sold at auction for the back taxes.
Petalas said he wants the council to write a strict rule for delinquent owners whose property is purchased in this year's tax sale requiring them to pay the successful bidder the usual surcharge.
"We don't want the county stuck paying that amount," Petalas said.
Petalas also warned than anyone who fails to make amnesty payments on time will be banned for five years from any future installment plan.
Council members said they will draw up an ordinance to adopt the amnesty program in the coming weeks.
Read more: http://www.nwitimes.com/news/local/lake/lake-county-council-to-draft-tax-pardon-conditions/article_8df88072-3c43-5fed-ba01-d5868d83279f.html#ixzz1rGuENzk4
Lake County is ready to forgive thousands of tax-delinquent property owners.
But there are conditions, the Lake County treasurer said.
Treasurer John Petalas on Thursday asked the County Council to frame the conditions under which past-due tax liabilities will be handled under the state amnesty program, which will run from July 1 to July 2013.
"We don't want the county to get taken advantage of," Petalas said.
He said there are about 14,000 people who owe the county $180 million in back taxes, interest and penalties.
Petalas said the amnesty program will let those people avoid large interest and penalty fees if they agree to repay all taxes they owe from 2011 and previous years and all taxes they will owe for this year and the first half of 2013.
He said the conditions are designed to get people into regular tax-paying habits.
Petalas is urging those interested in amnesty to apply as soon as possible because all delinquencies must be repaid in full by July 1, 2013.
"If they sign up this July, they have 12 months to repay, but if they wait until November they will only have eight months," he said.
Petalas also warned that he intends to hold a tax sale in July or August. Anyone who hasn't been approved for amnesty before the sale faces having their house sold at auction for the back taxes.
Petalas said he wants the council to write a strict rule for delinquent owners whose property is purchased in this year's tax sale requiring them to pay the successful bidder the usual surcharge.
"We don't want the county stuck paying that amount," Petalas said.
Petalas also warned than anyone who fails to make amnesty payments on time will be banned for five years from any future installment plan.
Council members said they will draw up an ordinance to adopt the amnesty program in the coming weeks.
Read more: http://www.nwitimes.com/news/local/lake/lake-county-council-to-draft-tax-pardon-conditions/article_8df88072-3c43-5fed-ba01-d5868d83279f.html#ixzz1rGuENzk4
Lake County Assessor Clashes with Townships over Budget
From the Northwest Indiana Times:
Lake County Assessor Hank Adams is blasting county and township officials for trying to spend $172,000 without his approval.
He objects to requests by Calumet Township Assessor Jacquelyn Collins, Ross Township Assessor Angela Guernsey and St. John Township Assessor Melody Kikkert to dip into money reserved for future reassessments to spend on overtime and part-time employees for this year.
Adams also clashed with Lake County Council President Jerome Prince, D-Gary, during a council workshop meeting when Prince refused to accept Adams' criticism.
Adams, the first Republican in half a century to be elected to a countywide office, complained the council gave his predecessor, former County Assessor Paul Karras, a Democrat, more employees and more authority over township assessors' budgets.
"I cover six townships as well as inheritance taxes, nonprofits and appeals from all 11 townships, and I only have 29 full-time employees. By International Assessors Association standards, I would have at least 70 employees," Adams said.
He said the Calumet Township assessor has 16 employees to cover only one township. The township already has enough money in its 2012 budget and shouldn't be asking for more, Adams said.
...
Read more: http://www.nwitimes.com/news/local/lake/gary/lake-county-assessor-clashes-with-council-over-township-spending/article_ca4f65d7-98ab-512e-8986-d1b2be5a865d.html#ixzz1rGtQvNw0
Lake County Assessor Hank Adams is blasting county and township officials for trying to spend $172,000 without his approval.
He objects to requests by Calumet Township Assessor Jacquelyn Collins, Ross Township Assessor Angela Guernsey and St. John Township Assessor Melody Kikkert to dip into money reserved for future reassessments to spend on overtime and part-time employees for this year.
Adams also clashed with Lake County Council President Jerome Prince, D-Gary, during a council workshop meeting when Prince refused to accept Adams' criticism.
Adams, the first Republican in half a century to be elected to a countywide office, complained the council gave his predecessor, former County Assessor Paul Karras, a Democrat, more employees and more authority over township assessors' budgets.
"I cover six townships as well as inheritance taxes, nonprofits and appeals from all 11 townships, and I only have 29 full-time employees. By International Assessors Association standards, I would have at least 70 employees," Adams said.
He said the Calumet Township assessor has 16 employees to cover only one township. The township already has enough money in its 2012 budget and shouldn't be asking for more, Adams said.
...
Read more: http://www.nwitimes.com/news/local/lake/gary/lake-county-assessor-clashes-with-council-over-township-spending/article_ca4f65d7-98ab-512e-8986-d1b2be5a865d.html#ixzz1rGtQvNw0
Thursday, April 5, 2012
Revenue Issues Press Release Regarding Accounting Error
State Distributes Additional Local Option Income Tax Funds to 91 Indiana Counties
(April 5, 2012) – As a result of a programming error, the state is distributing additional local option income tax (LOIT) collections to counties today. This distribution is the result of an error in the Department of Revenue’s (DOR) annual County Statistics Report provided to the Office of Management and Budget (OMB). OMB uses this report to determine LOIT distribution amounts to each county.
The error in the County Statistics Report was discovered by the Office of Management and Budget, which has been engaged in an ongoing review of Department of Revenue reports. The error resulted in counties receiving approximately $13 million per month less than they should have since January 2011.
Governor Daniels directed OMB to immediately distribute the funds to each county, with interest. The state budget agency has recertified the amounts for 2011 and 2012, and the state auditor is distributing the funds today. Ninety-one Indiana counties collect LOIT; Lake County does not. The counties and the amount each received may be found at this link: www.in.gov/sba/2591.htm.
The programming error was discovered in the generation of the County Statistics Report. Beginning in January 2011, the report failed to capture the amounts due to counties from individual taxpayers who separated their state and county estimated payments when remitting quarterly income tax estimates. Consequently, local option income taxes were under-distributed and State General Fund revenues were overstated.
Legislation was passed in 2008 requiring DOR to create an additional quarterly report for County Auditors detailing LOIT collections beginning in 2011. When changes were made to the systems for the new report, the County Statistics Report was not updated accurately to reflect all LOIT collections. A similar error occurred in 1998 when the report was first created.
The OMB review of the Department of Revenue will continue, and the OMB will be engaging an outside expert to complete an audit of DOR’s systems, processes, and procedures. The State Budget Committee will review the external audit.
http://www.in.gov/dor/4641.htm
Inside Indiana Business Reports State Revenue for March
Results
Total revenue collections were $1,039 million, $23 million more than projected by the revenue forecast updated on December 14, 2011.
Total collections for March were $62 million above collections for the same period last year (+6.3%).
Sales tax collections totaled $531 million for the month, $47 million (+9.8%) above collections for the same period last year.
Individual income tax collections totaled $337 million for the month, $4 million (+1.1%) above collections for the same period last year.
Payroll withholdings increased 4.1% compared to the same period last year.
Year to date, state general fund revenues are $76 million ahead of the budget plan, but are $41 million (-0.4%) behind the most recent revenue forecast updated on December 14, 2011.
Commentary
Beginning in January of 2011, the state has under-distributed local option income taxes to Indiana counties as a result of an error in the County Statistics Report. This error resulted in the overstatement of state general fund revenues by $70.6 million in FY 2011, and by approximately $13 million per month during the first eight months of FY 2012. Results for individual income tax revenue have been restated in the monthly revenue report for July through February, and the correct amount has been reported for March.
Through the first 9 months of the fiscal year, state general fund revenues are currently $41 million (-0.4%) behind the most recent revenue forecast updated on December 14, 2011. However, they are $76 million ahead of the budget plan, which was based upon the April 15, 2011 revenue forecast. Through March, state general fund revenues have increased 6.3% compared to the same period last year. The December 2011 forecast projects annual growth of 6.0%.
Through March, individual income tax collections have increased 4.7% over the prior year. Payroll withholdings increased 4.1%, bringing the average growth over the first nine months of the fiscal year to 4.1%. The Department of Revenue has processed and paid more refunds in the first quarter of CY 2012 than were processed in the first quarter of CY 2011, although the average refund amount is down slightly. As a result, it remains probable that individual income tax collections will be stronger later in the fiscal year.
Sales tax collections increased 9.8% over the same period last year. Through March, sales tax collections have increased 6.5% over the prior year, just slightly ahead of the 6.4% growth rate projected in the latest revenue forecast.
Through March, corporate income tax collections lead the December 2011 forecast by $60 million.
http://www.insideindianabusiness.com/newsitem.asp?id=53060
Total revenue collections were $1,039 million, $23 million more than projected by the revenue forecast updated on December 14, 2011.
Total collections for March were $62 million above collections for the same period last year (+6.3%).
Sales tax collections totaled $531 million for the month, $47 million (+9.8%) above collections for the same period last year.
Individual income tax collections totaled $337 million for the month, $4 million (+1.1%) above collections for the same period last year.
Payroll withholdings increased 4.1% compared to the same period last year.
Year to date, state general fund revenues are $76 million ahead of the budget plan, but are $41 million (-0.4%) behind the most recent revenue forecast updated on December 14, 2011.
Commentary
Beginning in January of 2011, the state has under-distributed local option income taxes to Indiana counties as a result of an error in the County Statistics Report. This error resulted in the overstatement of state general fund revenues by $70.6 million in FY 2011, and by approximately $13 million per month during the first eight months of FY 2012. Results for individual income tax revenue have been restated in the monthly revenue report for July through February, and the correct amount has been reported for March.
Through the first 9 months of the fiscal year, state general fund revenues are currently $41 million (-0.4%) behind the most recent revenue forecast updated on December 14, 2011. However, they are $76 million ahead of the budget plan, which was based upon the April 15, 2011 revenue forecast. Through March, state general fund revenues have increased 6.3% compared to the same period last year. The December 2011 forecast projects annual growth of 6.0%.
Through March, individual income tax collections have increased 4.7% over the prior year. Payroll withholdings increased 4.1%, bringing the average growth over the first nine months of the fiscal year to 4.1%. The Department of Revenue has processed and paid more refunds in the first quarter of CY 2012 than were processed in the first quarter of CY 2011, although the average refund amount is down slightly. As a result, it remains probable that individual income tax collections will be stronger later in the fiscal year.
Sales tax collections increased 9.8% over the same period last year. Through March, sales tax collections have increased 6.5% over the prior year, just slightly ahead of the 6.4% growth rate projected in the latest revenue forecast.
Through March, corporate income tax collections lead the December 2011 forecast by $60 million.
http://www.insideindianabusiness.com/newsitem.asp?id=53060
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