Cities can participate in tax rebate program
Staff reporter
After discussing the intent of Marion County's Neighborhood Revitalization program, Marion County Commission decided Monday to allow the City of Marion to participate in the program.
The city had applied for the tax rebate for a speculative building in its industrial park. The city intends to lease or sell the building.
The program is designed to give property owners a tax rebate during a 10-year period.
County appraiser Cindy Magill said the regulations for the rebate program did not address applications from cities.
It was noted that cities do pay property taxes on those properties that generate revenue and lots that are for sale. Cities do not pay taxes on city-used properties such as city buildings and shops.
Other concerns were expressed as to when exactly the 10-year rebate period would begin. When the city sold the building?
Magill explained that the structure would not be placed on the tax roll until 2008 since it was constructed this year. The 10 years would begin in 2008, regardless of the ownership.
The real question, the commission decided, was whether the city should be treated any differently than the average taxpayer. The answer was "no."
"We want to encourage development," Holub said.
A clause will be written in the program to allow municipalities to participate.
Magill informed the commission that Greensburg also had a neighborhood revitalization program in place.
"That commission tried to rescind the plan," Magill said, "because it was understood that residents participating in the program could not receive federal assistance."
Also, with most of the town destroyed and rebuilding occurring, there won't be a tax base if everyone participates in the program.
"I thought the commission could drop the program at any time," Dallke said.
Bateman clarified that the program cannot be discontinued for those already in the program.
It was suggested Magill work with the county attorney to rectify the situation.
