The agreement in principle between Howard County and old and new Chrysler concerning the payment of personal property taxes apparently cleared another hurdle Monday.
The deadline for filing of any objections to the agreement in principle reached by county officials, Old Carco and Chrysler Group LLC passed.
The agreement in principle could be finalized in the U.S. Bankruptcy Court for the Southern District of New York Feb. 18.
County officials have been seeking payment of $12.9 million in personal property taxes due in 2009 and $13.2 million owed in 2010.
Negotiations between the parties has been on-going for the past nine months.
Howard County Attorney Larry Murrell said as of 10 a.m. Monday, no objections had been filed with the court.
Under terms of the agreement, Old Carco will pay 50 percent of the taxes due in 2009 and 14 percent of the 2010 taxes. Chrysler Group will pay 50 percent of the 2009 taxes and 86 percent of the 2010 taxes owed to the county.
The payment plan with Old Carco and Chrysler Group on the personal property taxes must be finalized, but the county will receive $11 million to cover all real property taxes due for 2010 shortly after the agreement is finalized.
Old Carco will reimburse Chrysler Group in the amount of $4.4 million for real estate taxes paid under protest in 2009.
County officials Monday asked the Kokomo Common Council to table a resolution to transfer approximately $9 million in tax abatements from Old Carco to Chrysler Group.
Transfer of the abatements is part of the agreement in principle, Murrell said.
“We have an agreement with Old Carco and the Chrysler Group,” he said. “We are negotiating the terms of the security payment with the U.S. Treasury.”
To protect the interests of the city and county, Murrell said officials wanted everything in place before proceeding with the transfer of the abatements, even on a provisional basis.
If an agreement with the U.S. Treasury can be reached in the next few days, county officials could request a special meeting of the Kokomo Common Council to approve the tax abatement transfer.
• Ken de la Bastide is the Kokomo Tribune enterprise editor. He can be reached at 765-454-8580 or via e-mail at ken.delabastide@kokomotribune.com
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