Kokomo — Chrysler Group LLC has agreed to withdraw its amended personal property assessed value, as part of an agreement with Howard County and Kokomo officials.

Both Chrysler and General Motors Co. had filed to lower personal property assessed values for 2010, payable in 2011, that could have cost local governmental entities $19 million in revenue. Local officials said that would have resulted in higher tax bills for all other county property owners.

Chrysler and local officials signed an agreement Monday that details how personal and real property will be assessed in the future.

In July, Chrysler filed an amended personal property assessed value of $92 million – 89 percent lower than the $814.7 million the company reported in May.

Howard County Assessor Jamie Shepherd said Chrysler agreed to withdraw the amended personal property assessment. She said after tax abatements are included, the company will pay personal property taxes on $526 million.

Shepherd said that is 12 percent lower than the original filing in May, but Chrysler agreed to pay the same personal property taxes as it paid this year.

Chrysler also agreed to assess equipment based on the price the old Chrysler originally paid when it was placed into service – not on the price paid through the 2009 bankruptcy proceedings, she said.

Shepherd said Chrysler has agreed to waive appeal for the real property tax assessment for 2010 and to work with the Center Township and county assessor offices on any appeals in the future.

The company also agreed to pay 50 percent of an outstanding sewer lien against old Chrysler to the City of Kokomo in the amount of $57,468.

“Without the joint effort between the city and county, we would not have been able to reach an agreement so quickly,” Shepherd said. “Chrysler worked with local officials. It shows the commitment to the community and secures the future of Chrysler in Howard County.”

Local officials wanted to reach an agreement with Chrysler because work has already started on the 2011 budgets. Shepherd said the agreement with Chrysler amounts to 75 percent of the anticipated lost revenues.

“The mutually agreeable resolution of this complex issue is reflective of the strong partnership Chrysler has forged with Kokomo and Howard County,” Eileen Wunderlich of Chrysler said. “We are pleased to have resolved this issue and look forward to focusing on the future.”

Auditor Ann Wells said the assessed values certified to the Indiana Department of Local Government Finance was the worst case. She said the DLGF will recertify the assessed values in Howard County with the larger figures.

Kokomo Mayor Greg Goodnight said he was a bit surprised the agreement was achieved so quickly and noted everyone did their part.

“For everybody it was at the top of the priority list,” he said. “Sheila [Pullen, Center Township assessor] and Jamie [Shepherd] did a great job in presenting our case. They could justify every number.”

Goodnight said he feels good about the relationship with Chrysler, and the agreement says a lot for the company.

“Every company does what they can to limit their tax liability,” he said. “By reaching the settlement, they did what the community needs.”

Still pending are talks with General Motors, which lowered the personal property on assessed value by $178 million after it purchased some Delphi facilities in Kokomo.

Pullen said a form was sent to GM stating local officials don’t agree with the value.

Pullen said GM has hired tax counsel, and the county has employed the Indianapolis law firm of Barnes and Thornburg.

Shepherd said additional information has been received from GM.

“Things worked out well with Chrysler,” Pullen said, “and we have a good partnership with GM.”

• 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