EDITORIAL: County officials rescue tax units

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June 22, 2009

Anonymous The Kokomo Tribune Mon Jun 22, 2009, 10:29 PM EDT

State Sen. Brandt Hershman was a little ticked off after learning Friday Chrysler Group LLC, the new company formed with Fiat, won’t pay $6 million this spring in personal property taxes.

“This is not only a firm refusing to pay taxes that will provide it with police and fire protection, but it’s also putting the burden on the back of a community already struggling,” the Monticello Republican said.

He wasn’t finished. He said the fact Fiat acquired Chrysler through a federal bailout program made the non-payment worse.

“It adds insult to injury, because it’s a firm which has succeeded because of the people who do pay their taxes,” he said.

The taxing units expected to be impacted the most are Howard County, the City of Kokomo, Northwestern School Corp. and Kokomo-Center Schools. At Northwestern, the portion of Chrysler’s non-payment is 30 percent of the corporation’s collections.

Howard County Council President Dick Miller said Friday he believes the county will have no choice but to ask for a state loan to make up for the shortfall. The other three likely will have to make the same choice.

Howard County officials deserve praise for their foresight on this issue. They anticipated Chrysler might withhold payment. They contacted state Rep. Ron Herrell and Sens. Hershman and Jim Buck.

Last week, the Indiana House passed an amendment to its budget bill that frees up the state’s Rainy Day Fund and makes loans available to Howard County taxing units. Hershman said Friday he expected the Senate budget bill would contain a similar provision.

County attorney Larry Murrell said officials still are in negotiations with Chrysler about the personal property taxes. We hope a settlement that benefits bother parties is reached.

In the meantime, Howard County taxing units have a fall-back plan – one that wouldn’t have been possible without the action of county officials.

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