Howard County officials are hoping other local taxing entities will provide some financial help toward legal bills accrued in the fight with Chrysler Group LLC over personal property assessed values.
This is the second time this year the county has requested help from the other taxing units to pay legal fees.
Earlier this year, Howard County negotiated an agreement with Chrysler and Delphi concerning delinquent real and personal property taxes as the two companies emerged from bankruptcy proceedings. The county spent $534,000 in legal expenses from 2005 through 2010. County officials were rebuked in 2010 by the other taxing entities when it came to sharing the legal costs incurred in the bankruptcy proceedings.
The second legal action started in July when Chrysler filed an amended personal property assessed value at 89 percent lower than in 2009. An agreement was reached in August in which Chrysler withdrew the lower personal property assessed value.
County council members agreed the taxing units should be billed for a portion of the costs. The other taxing units include Kokomo, Kokomo-Howard County Public Library, Kokomo-Center and Northwestern schools and Center Township.
The county commissioners requested an increase in contractual services for the 2011 budget year from $125,000 to $250,000.
This year, the commissioners budgeted $125,000. Through August, the county has spent more than $300,000 on legal fees. Auditor Ann Wells said Wednesday she informed the commissioners there would be a request for an additional $100,000 this year.
Council President Dick Miller, R-4th District, said there were no formal discussions with the other taxing units about sharing the legal expenses. He said the consensus of the council was to bill the other taxing units.
Assessor Jamie Shepherd said during the negotiations with Chrysler, it was mentioned a few times to Kokomo officials about sharing the legal costs. She said the other taxing entities were told the legal fight with Chrysler would depend on budget issues and that the county had limited funds.
“There was no formal agreement,” she said. “We didn’t have two to four months to reach an agreement.”
Councilman Paul Wyman, R-2nd District, asked if the other taxing entities agree to share the costs.
“We don’t want the same scenario as the last time where people didn’t end up paying,” he said.
Larry Murrell, county attorney, said only Kokomo was involved in the latest talks with Chrysler.
“No one asked if the city would split the costs,” he said. “We should submit a share of the costs and see if they agree to pay. We have no legal way to enforce the city to pay. We did it in good faith.”
Murrell and Shepherd said the city and county worked as partners in the process.
“There is a cost of doing business,” said Councilman Jeff Stout, R-At Large. “We are expected to collect taxes.”
Miller said the county was not expected to take extreme measures to collect the taxes.
Center Township Assessor Sheila Pullen said it’s vital to keep the team intact that worked on the agreement with Chrysler as talks take place with General Motors, which also reduced the personal property assessed value significantly for 2010 taxes payable in 2011.
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