Revenue Finds Taxpayer Sufficiently Showed that it Remitted the Proper Utility Receipts Tax

Excerpts of Revenue's Determination follow:

Taxpayer is business with operations in Indiana and other states. The Indiana Department of Revenue ("Department") determined that a ten percent negligence penalty was due for underpayment of utilities receipts tax ("URT") for the tax year 2004. Taxpayer filed a protest and provided supplemental documentation supporting that protest.
...

The Department issued proposed assessments for a ten percent negligence penalty for 2004. Taxpayer protests the imposition of penalty and requests a waiver of the penalty. Taxpayer states that it merged with another company during that year and that, when both parties' remittances are taken into account, the total of URT remitted for 2004 is accurate. Taxpayer provided documentation and analysis in support of its position. Taxpayer believes that these factors establish grounds for waiver of the ten percent penalty.

...
 

In this case, the Department determined that Taxpayer had under-remitted URT for 2004 due to negligence under 45 IAC 15-11-2(b), and so was subject to penalty under IC § 6-8.1-10-2.1(a)(4). As a result of the protest process, Taxpayer has provided supporting documentation in the protest process. After a review of that documentation, Taxpayer has affirmatively established that it remitted the proper amount of URT for 2004, as required by 45 IAC 15-11-2(c).

 

http://www.in.gov/legislative/iac/20130529-IR-045130207NRA.xml.html

IBJ Reports Hostess to Reopen Indianapolis Plant in Advance of Tax Abatement Approval

From the Indianapolis Business Journal:

Hostess Brands LLC is taking steps toward re-opening its Indianapolis plant well ahead of a city commission approving its requested tax abatement on $10 million in new equipment.

The Metropolitan Development Commission is scheduled to vote on the abatement request July 3, but the company already has started hiring and is testing and inspecting equipment, said Ryan Hunt, senior project manager in the Department of Metropolitan Development.

The activity is obvious, as the plant’s parking lot at 2929 Shadeland Ave., recently repaved and striped, is nearly full during daytime hours. Workers wearing hard hats and white coveralls can be see going in and out. The firm's tax abatement request said that the east-side facility could employ up to 145 people.

Hostess Brands spokeswoman Hannah Arnold said no one from the company was available to comment on its plans for Indianapolis. It is not immediately clear when the plant would start production or whether the equipment covered in the abatement request already has been purchased.

Department of Metropolitan Development staff has recommended approving the abatement, determining that the new investment in equipment wouldn't be economically feasible for Hostess without it. The tax break on personal property taxes would be worth up to $536,220 over eight years.

Hunt said the company should remain eligible for the tax break, despite the activity already under way at the plant. The Metropolitan Development Commission doesn't usually grant abatements on existing equipment, but can do so by waiving a statutory prohibition.

The MDC recently granted two 10-year abatements worth $30.6 million to Eli Lilly and Co., which because of an unexpected procedural delay already has installed some the equipment that's part of a $400 million upgrade and expansion of a facility southwest of downtown, Hunt said.

The MDC ends up waiving the statutory prohibition on abatements for existing equipment a couple of times a year, Hunt said. Hostess doesn’t plan to install the new equipment in the Indianapolis plant before July 3, he said.
...

http://www.ibj.com/hostess-prepares-to-open-indy-plant-despite-tax-break-question/PARAMS/article/42111

Star Reports Marion County Panel Recommends Phasing Out Homestead Property Tax Credit

From the Indianapolis Star:

A bipartisan Marion County study commission tonight recommended phasing out the homestead property tax credit over two years, a move that could increase taxes slightly for most homeowners.

The 6-4 vote indicated a split, with some Local Homestead Credit Review Commission members wanting to keep the credit. There also was a question about whether to count the vote of City-County Council member Marilyn Pfisterer, who supported phasing out the credit as a proxy for fellow Republican council member Jack Sandlin. Commission rules require six votes to make a recommendation, so it might not stand without her vote.

The recommendation goes to the council, which created the commission as part of a bipartisan budget agreement with Mayor Greg Ballard.

Other commission recommendations could help budget-cutting efforts. Among them were more study of possible increases to the local income tax rate to boost public safety funding and help other government units that the homestead credit’s elimination would harm indirectly.

If the council eliminates the homestead tax credit, city consultants estimate, about 25 percent of homeowners would see no change in their property tax bills.

Bills for 80 percent of the rest would rise by $30 or less.

The credit relies on a portion of income taxes that is diverted to reduce property tax bills. It is separate from the homestead deduction, which isn’t at risk.
...

http://www.indystar.com/apps/pbcs.dll/article?AID=2013306240103

NWI Reports Hammond Council Resolution Opposes Lake County Income Tax

From the Northwest Indiana Times:

The Hammond City Council adopted a resolution opposing the 1.5 percent Lake County income tax Monday.

The vote was 7-2 with Councilmen Jack Uylaki, D- 2nd, and Mark Kalwinski, D-1st, voting against the resolution.

The resolution states, "Imposing the proposed county income tax would shift the burden from industrial and commercial tax payers to ordinary individuals, causing hardships for many elderly and impoverished citizens."

The tax increase was approved in May by the Lake County Council by a 4-3 vote and will go into effect in October after the Lake County Board of Commissioners failed to veto the measure.

Bob Markovich, D-at large, sponsored of the resolution opposing the tax. He said though the income tax increase has been passed, many other area city councils have either passed a resolution against it or made a statement in favor of the ordinance.  

"As an elected official, people have been calling me about this, and I have to represent my constituents," Markovich told The Times before the meeting. "Everybody's mad about it."

This was the fourth time the tax increase came into the picture for a City Council vote. The vote has been on the agenda, but has not been put to a vote because of various circumstances, including a meeting cancellation, no support from other members to bring the issue to vote and absent council members.

"This vote came up months ago, and for whatever reason it didn't happen," Councilman Anthony Higgs, D-3rd said at the meeting. "Either way I was prepared before to vote for or against it then."

Instead of an increase in income tax, the resolution proposes the county should reduce budget spending and eliminate spending where possible. The resolution also states the council should resist coercion by pro-business members of the state Legislature.

Markovich cited a case that has been filed in Lake County Surperior Court in which two people are contesting the legality of the income tax increase.

The increase is expected to generate more than $90 million to be disbursed throughout Lake County. Hammond is anticipating to receive nearly $7 million in new revenue from the tax.

... 

http://www.nwitimes.com/news/local/lake/hammond/hammond-council-members-pass-resolution-opposing-recent-tax-increase/article_a1f089c1-33e8-5a32-aede-5838c2ffb693.html

Revenue Finds IC 6-8.1-10-9 Not Applicable Where Taxpayer Not Technically Dissolved or Liquidated

Excerpts of Revenue's Determination follow:

Taxpayer is an Indiana domestic for-profit corporation (also referred to as "Company"), which purchased and distributed cigarettes and other tobacco products ("OTP") in Indiana. Taxpayer has two shareholders who are also the officers of Taxpayer; one is the chief operating officer ("CEO") and the other is the president (collectively, "Officers"). Each of the Officers owns fifty (50) percent interest of Taxpayer.

Taxpayer ceased its business operation in late 2011. On April 25, 2012, Officers filed an Indiana Business Tax Closure Request, BC-100 form, with the Indiana Department of Revenue ("Department") informing the Department that Taxpayer has been "out of business" as of "August 15, 2011."

The Department's audit, in addition to finding that Taxpayer is out of business, determined that Taxpayer failed to remit the taxes on cigarettes which it purchased during July, August, and September 2011. The Department also determined that Taxpayer failed to remit the taxes on OTP which it purchased and distributed during January 1 through September 30, 2011. As a result, the Department assessed Taxpayer additional cigarette tax, other tobacco product tax, interest, and penalty (the "Liabilities").

Taxpayer and Officers protested. An administrative hearing was conducted. In both March 21, 2012 and May 23, 2012, protest letters, Taxpayer and Officers stated that Taxpayer "admits the [L]iabilities" and "there is no defense." The Letters of Findings Numbers 05-20120252 and 99-20120340 ("LOFs") found that since Taxpayer admits its Liabilities and that Taxpayer is no longer doing business in Indiana, Officers remain personally responsible for the Liabilities pursuant to IC § 6-8.1-10-9.

Taxpayer and Officers subsequently requested a rehearing, claiming that IC § 6-8.1-10-9 is not applicable in this instance because Taxpayer is "still listed as active with the Indiana Secretary of State [("Secretary of State")]." Rehearing was granted to address the issue of Taxpayer's status in the context of IC § 6-8.1-10-9. The Department's audit and LOFs found Taxpayer "out of business." Taxpayer and Officers challenge this, arguing that Taxpayer is still an active company and therefore IC § 6-8.1-10-9 is not applicable.
...
 

Both Taxpayer and Officers admitted that Taxpayer is liable for the Liabilities, but Taxpayer and Officers argued that IC § 6-8.1-10-9 is not applicable to them personally as officers of Taxpayer. Taxpayer and Officers argued that Taxpayer has not been dissolved and is "active" according to the website of the Secretary of State.

...
 

In both protest letters, and also at the hearing and the rehearing, Taxpayer and Officers admitted that Taxpayer is liable for, and the Department correctly assessed, taxes on the cigarettes and OTP at issue. Taxpayer and Officers, however, objected to the conclusion of LOFs that Officers are currently personally responsible for Taxpayer's Liabilities pursuant to IC § 6-8.1-10-9. The Department's LOFs found that Taxpayer was "out of business" and therefore Officers were personally liable pursuant to IC § 6-8.1-10-9. The LOFs relied on the audit's findings and on the BC-100 form signed by both Officers and filed with the Department on April 25, 2012, stating that Taxpayer was closed.
 

Taxpayer and Officers asserted that IC § 6-8.1-10-9 is not currently applicable because Taxpayer is "still listed as active with the Indiana Secretary of State" and has not initiated any liquidation or dissolution of Taxpayer. Taxpayer and Officers asserted that they "provided none of the documents referenced on the [BC-100] form (minutes of final board meeting, articles of dissolution, etc.), because [Taxpayer] has not been dissolved, as the Secretary of State's office has confirmed, and the form was not signed under seal." (March 6, 2013 e-mail from the attorney representing Taxpayer and Officers).
 

Upon review, the BC-100 form at issue filed with the Department was signed by both Officers. Officers certified that Taxpayer has "been out of business or no longer required to be registered for the indicated tax type" as of "8-15-11." Additionally, both Officers certified that they "may also be responsible for all liabilities or unfiled returns proven to be due and owed at a later date." However, Officers stated that they "provided none of the documents referenced on the [BC-100] form (minutes of final board meeting, articles of dissolution, etc.) and the form was not signed under seal." Taxpayer's 2011 Indiana S Corporation Income Tax Return, which was timely filed in April 2012, also did not state that Taxpayer filed its "final return." Given the totality of the circumstances, in the absence of other supporting documentation, the Department is prepared to agree that Taxpayer has not been technically "dissolved" or been "liquidated" as required under IC § 6-8.1-10-9. While Taxpayer and Officers admit that Taxpayer is responsible for the Liabilities, since Taxpayer has not been technically "dissolved" or "liquidated," IC § 6-8.1-10-9 is not applicable at this time.

 

http://www.in.gov/legislative/iac/20130529-IR-045130206NRA.xml.html

Star-Press Reports Delaware County Report Calls for New Taxes

From the Muncie Star-Press:

Two new local taxes – including one that would provide nearly $2.5 million a year for public safety – are among the proposals Delaware County officials will hear from a consultant today.

A public safety local option income tax would generate $2.4 million in new money per year, according to the report from H.J. Umbaugh, the Indianapolis consultants hired by the Delaware County commissioners to make recommendations to help the county’s finances.

A tax to fund a cumulative capital development account would generate just over $1 million a year to help pay for building construction and maintenance, Umbaugh recommends.

The report is scheduled to be made public during a 5 p.m. meeting of the Delaware County commissioners and Delaware County Council. The Star Press obtained an early copy of the report.

The 48-page report, requested in April by the county commissioners at a cost “not to exceed $25,000,” was aimed at making recommendations to help the county’s financial problems. Due to declining revenue from property taxes, investments and other sources, county government has been making cuts to budgets and suggesting more are likely.
...

http://www.thestarpress.com/apps/pbcs.dll/article?AID=2013130624012

Sun Commercial Argues No Viable Alternative to Wheel Tax in Knox County

From the Vincennes Sun-Commercial:

We’ve yet to hear a practical alternative for coming up with the money to invest in repairing and maintaining local roads and streets from opponents of the wheel tax.

And we’re not likely to hear one.

For the truth is local governments have been running short on road money for years — and so has the state, and so has the federal government.

Gas taxes aren’t generating as much money as they once did because vehicles today are more fuel-efficient — they’ve become so much more efficient that the U.S. is now a major oil exporter, although you couldn’t prove that by high gas prices.

We have no better explanation for that anomaly than the next guy.

There’s less money coming in yet roads and streets still have to be maintained and repaired while, at an increasingly-alarming rate, bridges have to be replaced.

The supply of money to do the work continues to decline while the demand for the work itself continues to rise unabated.

We’re not yet ready to trust the state to continue to provide extra money for local roads and streets.

The state promised to fully support public school general funds with new sales-tax revenues, yet here they are, taking away some of that money to shift to road repairs.

And there’s Interstate 69 to finish and maintain.

So the question is, What’s the best way to come up with the money to repair local roads and streets?

The old bromide to the affect that if county government would only stop its wasteful spending there would be more than enough money for roads has, for those who resort to repeating it, the great disadvantage of not being true.

If anything, county government has been a touch too frugal with tax dollars; it definitely hasn’t been spendthrift in their use.

This isn’t the first time the county has faced such a situation, of not having enough money to effectively provide services.

Back 15-20 years ago, when property taxes weren’t raising enough money to adequately meet the demand for government services, wise local officials adopted new taxes (COIT and EDIT) to make up the difference, just as 10 years ago, when the county was essentially ordered to build a new jail, they adopted another new, temporary tax to pay for its construction.

Adoption of those new taxes was met with opposition on each occasion, but those local officials who supported them did the right thing both times — and the county has benefited greatly.
...

http://suncommercial.com/articles/2013/06/21/opinions/opinions/doc51c5069ae3fd9805942732.txt

Pence Names Brian Bailey to Lead State Budget Agency

Governor Mike Pence today announced the hire of a new budget director to lead the State Budget Agency.

Effective July 15, 2013, Brian Bailey will serve as the Budget Director where he will lead the State Budget Agency on behalf of Governor Pence.  Bailey currently serves as the Chief of Staff and General Counsel at the Office of Management and Budget. His long list of responsibilities includes development of tax, regulatory and local government policy for Governor Pence as well as operational oversight of the Indiana Department of Revenue, State Board of Accounts, Indiana Department of Local Government Finance and Indiana Board of Tax Review.  In his current role he also advises the Governor regarding proposed legislation with a significant fiscal impact on the state’s budget and played an integral role in the preparation of the Governor’s proposed FY14-FY15 State Budget.  Prior to joining the Pence Administration, Bailey was appointed to serve as a Commissioner for the Indiana Department of Local Government Finance by Governor Mitch Daniels and held that office from 2010-2013. Bailey also practiced law at Ice Miller LLP in Indianapolis for almost six years. Bailey earned his undergraduate degree from Wabash College and holds a law degree from Indiana University School of Law in Bloomington.

“The experience, knowledge and integrity possessed by Brian Bailey is impressive and I am positive that his talents will bring new insight in his new role with the State Budget Agency,” said Governor Pence.  “Under his guidance, I am confident that the State Budget Agency will continue to wisely manage state resources and grow our state’s economy.”

Andrew Kossack will move into Bailey’s current position and serve as General Counsel and Policy Director at the Office of Management and Budget, effective July 15, 2013, where he will oversee tax, local government and regulatory policy for the Governor and oversee the Department of Revenue, Department of Local Government Finance, the State Board of Accounts and the Board of Tax Review.  Kossack currently serves as the Education and Workforce Policy Director for Governor Pence.  In this role, he serves as the policy liaison to the Governor for the state agencies focused on education and workforce issues, including the Commission for Higher Education, Department of Education, Department of Workforce Development, Department of Labor, Indiana Charter School Board, the Indiana Education Employment Relations Board, and the newly-enacted Indiana Works Councils.  Previously, Kossack served as the Deputy Chief of Staff for the Indiana Department of Education. Before joining the department, Kossack was appointed Indiana’s public access counselor by Governor Mitch Daniels and held that office from 2009-2011.  He began his legal career practicing labor and employment law as an attorney at Barnes & Thornburg LLP in Indianapolis.  Kossack received his undergraduate degree from Butler University and his law degree from Indiana University Robert H. McKinney School of Law.

Bailey and Kossack will report to OMB Director Chris Atkins who has been serving as both OMB Director and Budget Director since the Governor appointed him on January 14, 2013. Atkins will continue his role as the OMB Director and will allocate more time assisting the Governor with the management of state agencies.

“The leadership, exemplary work ethic and integrity demonstrated by Chris during these first six months of the administration illustrate his commitment to serving the people of Indiana,” said Governor Pence.  “I am grateful for his sound judgment and expertise in helping to create an honestly balanced budget with the largest tax cut in the state’s history.”

Bailey and Kossack will start their new roles on July 15, 2013.

http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=107731&information_id=183397&type=&syndicate=syndicate

Supreme Court Denies Transfer in Millennium Real Estate Investment

49T10-1008-TA-42

Millennium Real Estate Investment LLC, an Indiana Limited Liability Company v. Assessor, Benton County, Indiana

Petitioner

Review Denied - All Justices concur, except for Rush, J., who votes to grant the Petition for Review.

6/20/13

Fisher, Sr. J.

FP

11/5/12

http://www.in.gov/judiciary/cofc/2338.htm


Here is the Tax Court Decision at issue:

http://www.in.gov/judiciary/opinions/pdf/11051201tgf.pdf

Board Finds Taxpayer Failed to Support a Lower Value for Property by Comparing the Assessed Values of Other Properties or By Alleging Flood Damage

Excerpts of the Board's Determination follow:

The Petitioner did not relate her purchase price to March 1, 2011, or explain how it helps prove a more accurate valuation as of March 1, 2011. Therefore, this evidence does not help to prove her case. Long, 821 N.E.2d at 471.

The Petitioner complained that the Respondent and the PTABOA did not view her property. The Board’s proceedings, however, are de novo. Their failure to view the property did not hinder the Petitioner’s ability to present relevant evidence and argument during the Board’s hearing. See Ind. Code § 6-1.1-15-4. Therefore, at this point the failure to view the property is irrelevant.

The Petitioner relied heavily on the assessed value of nearby properties. Pursuant to Ind. Code § 6-1.1-15-18(c), the assessments of comparable properties may be used as evidence, but the determinations of comparability must be made using generally accepted appraisal and assessment practices. Therefore, the proponent must establish the comparability of the properties being examined. Conclusory statements that a property is “similar” or “comparable” to another property do not constitute probative evidence of the comparability. See Long, 821 N.E.2d at 470.

The Petitioner was responsible for explaining the characteristics of her own property, how those characteristics compared to those of the purportedly comparable properties, and how any differences affected the relevant market value-in-use of the properties. Id. at 471. But in this case the Petitioner failed to offer any meaningful comparison of the purportedly comparable properties. Accordingly, the other assessments presented by the Petitioner do not help to prove a more accurate assessed value for the subject property.

The Petitioner also claimed her property is over-assessed based on damage caused by heavy rains and flooding. An influence factor is used to account for characteristics of a particular parcel of land that are peculiar to that parcel. It is expressed as a percentage that represents the composite effect of the factor that influences the value. Guidelines, Glossary at 10. To prevail on the issue of an influence factor, the taxpayer must present probative evidence that would support an application of a negative influence factor and a quantification of that influence factor at the administrative level. Talesnick v. State Bd. of Tax Comm’rs, 756 N.E.2d 1104, 1108 (Ind. Tax Ct. 2001); Phelps Dodge v. State Bd. of Tax Comm’rs, 705 N.E.2d 1099 (Ind. Tax Ct. 1999). While heavy rains and flooding may affect the property’s value, the Petitioner offered no probative evidence to show the extent to which they do so. The Petitioner’s unsubstantiated conclusions do not constitute probative evidence. Whitley Products, Inc. v. State Bd. of Tax Comm’rs, 704 N.E.2d 1113, 1119 (Ind. Tax Ct. 1998).

 

http://www.in.gov/ibtr/files/Grimes_63-007-11-1-5-00037.pdf

 

Revenue Finds Taxpayer Acted Reasonably and Waived Penalty for Failure to Collect Sales Tax

Excerpts of Revenue's Determination follow:

Taxpayer is an Indiana business and retail merchant. As the result of an audit, the Indiana Department of Revenue ("Department") determined that Taxpayer had not collected sales tax on sales which were subject to sales tax. The Department therefore issued proposed assessments for Indiana sales tax, ten percent negligence penalties, and interest for the tax years 2010 and 2011.
...

The Department issued proposed assessment for penalties on failure to remit sales tax for the tax years 2010-11. Taxpayer protests the imposition of penalties and requests a waiver of that penalty. Taxpayer states that this was its first audit and that it now understands its duties regarding sales tax. Taxpayer has also implemented procedures to ensure that it will meet its sales tax duties in the future.

...
 

In this case, Taxpayer failed to collect and remit Indiana sales tax on some sales which were properly subject to Indiana sales tax. The Department considered this to constitute negligence and so imposed penalties under IC § 6-8.1-10-2.1(a). As a result of the protest process, Taxpayer has affirmatively established that it acted reasonably in its efforts to comply with Indiana's sales tax requirements, as required by 45 IAC 15-11-2(c). The negligence penalties will be waived. However, the Department takes this opportunity to inform Taxpayer that it is now on notice of its sales tax duties and any failure to meet those obligations in the future may result in penalties for subsequent years.

 

http://www.in.gov/legislative/iac/20130529-IR-045130204NRA.xml.html

AP: Posey County Backs $1.3 Billion Fertilizer Plant Financing

By the Associated Press in the Indianapolis Star:

Officials of a southwestern Indiana county have approved issuing $1.3 billion in bonds for a proposed fertilizer plant being developed by a Pakistan-based group after Gov. Mike Pence pulled state support, citing concerns about the company’s overseas products being used in explosives in Afghanistan.

The Posey County Council voted unanimously Wednesday in favor of the financing plan for the Midwest Fertilizer Corp. plant. Pence announced Tuesday the state wouldn’t block the county, located along the Ohio River west of Evansville, from backing project, despite his reservations.

The plant is expected to have about 300 workers, although a site for it hasn’t yet been selected, county and company officials said. The financing deal makes investors — including Pakistan-based Fatima Group — responsible for repaying the bonds, the Evansville Courier & Press reported.
...

John Taylor, executive director of the Posey County Economic Development Partnership, said there are three possible sites near Mount Vernon being considered for the plant.

Details must still also be finalized on a $143 million tax incentive package offered by county officials for the plant, said Jonathan Weinzapfel, an attorney for the county economic development commission.

http://www.indystar.com/viewart/20130620/BUSINESS/306200086/Posey-County-backs-1-3B-fertilizer-plant-financing

Pilot News Reports Plymouth Permits 'Pass Through' to Tune of $30 Million

From the Pilot News:

Plymouth’s Redevelopment Commission made a decision regarding taxes.

While two of Plymouth’s TIF (Tax Increment Financing) districts have projects and bond issues that preclude “passing through” or not collecting revenue that they are legally able to collect, Plymouth’s TIF 1 District has cash reserves that would allow it to pass through a significant amount of money.

Plymouth has three such districts.

• TIF 1: located in the Pine Road area in the vicinity of U.S. 30.
• TIF 2: designated as downtown Plymouth.
• TIF 3 : adjacent to TIF 1, in the Oak Road area near Wal-Mart.

A bond issue in TIF 2 makes it nearly impossible to allow money to pass through. Current projects in TIF 3 would also make it unwise to deplete monies to pay for them.

Samuelson said that TIF 3 had actually passed through 91 percent of the revenue it could have taxed a year ago - $35 million - and suggested a pass through number to the board of a minimum of $18.5 million to a maximum of $35 million, adding that in his estimation an amount of $25 million to $30 million would be advisable.

http://www.thepilotnews.com/content/county-permits-pass-through-tune-30-million

Leader Reports Salem Prepares for Possible Budget Shortfall

From the Salem Leader:

The City of Salem is taking precautions in preparation for a possible fiscal crunch.

During Monday's city council meeting, members approved a resolution reducing the city's 2013 budget by 12 percent.

Salem Mayor David Bower said that is the estimated shortfall in property tax receipts, which Bower attributes to the circuit breaker legislation passed several years ago. Circuit Breaker caps the amount of property taxes a property owner pays.

"Her estimate may be high, it may be low," Bower said, referring to Pat Persinger, the city's clerk-treasurer. "We are being proactive."

Persinger said a factor is a drop in assessed valuation within the city, which is $165,639,000, down $5,500,000 from last year.

"We've got to get more assessed valuation within the city's limits," Persinger told council members.

Bower said increasing the assessed valuation is one reason for his efforts to attract a big box store to the community.

He told the council that he has met with department heads, who have been asked to cut 2 percent from their budgets.

Bower mentioned efforts to reduce costs, including a reduction in the number of employees, from 81, the number in 2008 when he took office, to 63 today.
...

http://www.salemleader.com/main.asp?Search=1&ArticleID=7018&SectionID=2&SubSectionID=20&S=1

Herald-Bulletin Reports Local Governments Prepare for Long Season of Budget Writing

From the Anderson Herald-Bulletin:

Summer officially began early Friday morning which, as it happens, also means county and municipal officials throughout Indiana are breaking out the pencil sharpeners to begin writing budgets for 2014.

Madison County is no exception.

Seems early, you might think, but it's not. Really.

Next week, local governments will receive the first of two property tax draws for the year, which will be used as the baseline from which to project revenue for 2014.

Local governments collect an alphabet soup of taxes — the County Option Income Tax, (COIT), Local Option Income Tax, (LOIT), County Economic Development Income Tax, (CEDIT), sales tax and more — but the single largest source of revenue used to finance local government operations is still property taxes.

Anderson Mayor Kevin Smith said last week that many of the issues the city confronted when cobbling together this year's budget last fall, such as police and fire department layoffs, will remain land mines as officials begin looking ahead to 2014.

City Controller Sam Pelligreno said he won't know until next week exactly how much property tax revenue the city will receive in this draw and didn't want to make predictions on Friday.

On one hand, he knows the Madison County Council's decision last month to reinstate the wheel tax after a one-year hiatus will provide the city with additional revenue for road paving and maintenance projects.

On the other hand, however, $1.8 million in revenue from a commissioner's property sale won't materialize. A sale in March yielded just $410,000, Pelligreno said. About half of that will come to Anderson.
...

See the full article here:

http://heraldbulletin.com/local/x1472216280/Local-governments-prepare-for-long-season-of-budget-writing

Herald-Argus Reports LaPorte County Property Taxes Being Billed in One Lump Sum

From the LaPorte Herald-Argus:

La Porte County taxpayers who don't want to pay all their 2013 property taxes in one lump sum this November can still pay early.

They just have to estimate the amount.

According to La Porte County Treasurer Nancy Hawkins, county residents will be receiving their first real property tax bill since 2005 in November. But the catch is they won't be getting a bill earlier this year, as in previous years, meaning they will have to pay the entire year's worth of property taxes all at once.

For residents who want to pay the May portion of their taxes now, she said they can send a check to her office, and her staff will put it toward their future bill. But her department won't be able to give them their actual bill or even the amount they owe because the exemptions and rates haven't even been calculated yet.

Since 2005, La Porte County has been in the throes of a property tax situation that has required the county to send out provisional bills based on outdated assessed valuations. The provisional bills, like the real tax bills before them, were sent out twice a year.

The county has been trying to catch up by sending out reconciled bills, which have been updating taxpayers on the amount they owe based on each year of provisional bills.

As Hawkins explained it, the state is allowing La Porte County to get out of the provisional bill cycle and back to real tax bills this year, but first it has to finish sending out the reconciliations, the last of which, for the 2011-pay-2012 tax year, are being completed now.

For those who wonder why the county can't get the real tax bills out earlier, Hawkins said the reconciled bills have to be calculated first, as required by state law. Then the auditor's and assessor's offices have to gather the new assessed valuations and the various exemptions. Then the county has to wait to get the tax rate from the state. And then the treasurer's office can print the bills.

So it is not as simple as it might seem.

She also wanted to remind taxpayers who haven't paid the reconciliation bills from January, that they are due on July 15.

http://www.heraldargus.com/articles/2013/06/21/news/local/doc51c391ea20efc805350057.txt

IBJ Reports Carmel Quarrelling About Incentives

From the Indianapolis Business Journal:

With its Arts & Design District, City Center and Center for the Performing Arts, Carmel has shed its suburban skin and morphed into a walkable, attractive city in its own right. But in the process, it has acquired some city-sized habits, including a penchant for handing out financial incentives to developers to get them to build exactly the kind of city Carmel leaders envision.

The tension brewing between the pro-incentives crowd—including the architect of Carmel’s transformation, longtime Mayor Jim Brainard—and those who want to put the brakes on the handouts puts Carmel’s city council in a tough spot.

To counter the wave of incentives, the council appears to be ready to quit the habit cold turkey.

Councilors voted June 3 against supporting an application for up to $25 million in state tax credits that could be put toward redevelopment of a former industrial site in midtown, the underdeveloped area between City Center and the Arts & Design District.

Pedcor Cos., owner of the industrial site and the developer on the receiving end of millions in city incentives over the years, hadn’t asked for Carmel’s financial support—yet. It merely wanted a resolution supporting the tax-credit application.

But the council isn’t in a supportive mood after taking on $184 million in debt last year racked up by the Carmel Redevelopment Commission, the group behind most of the incentives handed out to date. Just the anticipation that Pedcor would ask for incentives for the mixed-use project was enough for the majority of councilors to vote no.

The rejection paints a bright battle line between Carmel’s opposing camps, and suggests the city might have no choice in the near term but to test developers’ appetites for pursuing the lucrative market without assistance.
...

See the full article here:

http://www.ibj.com/carmel-quarrel-too-many-incentives/PARAMS/article/42048

Sun Commercial Reports Bicknell Council Proposes Wheel Tax

From the Vincennes Sun-Commercial:

City councilman Frank Gugliotta on Wednesday may have been the first person to use the word fungible in its proper context while inside the confines of City Hall.

But that wasn’t his biggest accomplishment.

That came when he summed up the reason for the council meeting in special session to hear comments on the adoption of a county wheel tax.

“What you’re doing is providing the county council with political cover, right?” Gugliotta asked county commissioner Larry Holscher at one point. “That’s why you’re coming to us for support of the tax?”

“Right,” Holscher answered.

“And I’m OK with that,” Gugliotta said.

The commissioners are asking city and town councils to consider the tax, or at least to open up discussions on the levy, with the hope of getting the tax  implemented and revenue from it rolling in beginning in 2015.

Holscher said everyone seems to be in agreement that roads and streets throughout the county, including in the cities and towns, are in poor shape and getting worse.

And, he said, most appear to agree that there isn’t enough money, within county government or the municipalities, to pay to fix them.
...

http://suncommercial.com/articles/2013/06/19/news/local_news/doc51c26621b96d1505038183.txt

News-Sentinel Reports Corrugated Supplies Applies for Tax Phase In for Expansion in New Haven

From the Fort Wayne News- Sentinel:

A $12.6 million project is expected to create 27 new jobs at a New Haven manufacturer of corrugated paper products.

In an application for a tax “phase in” filed with the Allen County Department of Planning Services, Corrugated Supplies Co. Inc.-Indiana said its investment in new equipment would create jobs with salaries averaging between $39,000 and $75,000. If approved the phase in, formerly known as an abatement, would reduce its taxes on the equipment by $788,000 over 10 years.

The company agreed to return 5 percent of its savings to a county fund used to promote economic development.

Fifty-seven people now work at the company's facility at 2190 Summit St. According to the application, the company might not be able to keep pace with customer demands without the added capacity. The new equipment could be purchased next month and operational by early 2014.

CSC, headquartered in Bedford Park, Ill., announced its expansion into New Haven in 2005. The company provides paperboard sheets primarily to small-and medium-sized independent box makers within a 250-mile radius.

Its original New Haven expansion also received a variety of incentives from state and local governments.

The phase-in request could be considered by New Haven City Council next month.

http://www.news-sentinel.com/apps/pbcs.dll/article?AID=/20130621/NEWS/130629926/0/SEARCH

Tribune Reports Porter County Treasurer Instructs Delinquent Taxpayers to Consider Payment Plan to Avoid Tax Sale

From the Chesterton Tribune:

The deadline for Spring 2013 tax bills has come and gone and preparation for conducting a tax sale begins.

Porter County Treasurer Mike Bucko said that taxpayers who have not paid taxes due from May 10, 2012 or before may find themselves subject to tax sale on Oct. 29, 2013.

SRI of Indianapolis is conducting the tax sale for the county and will notify taxpayers via certified mail in August followed by a first class notice mailed in early October for those who have not responded to the certified mailing.

A non-refundable fee of $100 that covers advertising costs and SRI’s fees will be applied to each certified delinquent taxpayer.

Bucko said delinquent taxpayers should know they may be eligible to be placed on a tax sale payment plan which provides an extended time period to pay but all delinquent taxes and all penalties are collected. This is not an alternative to the annual payment method but you may be eligible, said Bucko.

Taxpayers on a payment plan will remain on the tax sale list and be advertised three consecutive times beginning in September. Once certified the only way to prevent being advertised is to pay the amount owed in full prior to the deadline for advertising.

If a payment plan is created and the taxpayer has made their down payment and all monthly payments on or before the tenth day of each month due up to and including October 10, 2013 without fail they may be removed from the tax sale list, Bucko said. Late payments are not allowed and will void the agreement.

Call the Treasurer’s Office at 219-465-3470 for an appointment Monday Ð Friday 8:30 a.m. to 4:30 p.m. except holidays with the Treasurer or his Chief Deputy Treasurer at 155 Indiana Ave. Suite 209 in Valparaiso.

http://chestertontribune.com/Porter%20County/treasurer_tells_how_to_avoid_bei.htm