Cities will be allowed to participate in tax rebate program
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.
Several scenarios were discussed by the commission.
"If the city is constructing the building to have it sold, then the rebate has to be passed on to the new owner," commissioner Dan Holub said.
"What if the rebate is approved and the city decides to retain it? How would it be changed?" asked commission chairman Randy Dallke.
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 she was told that there were issues in Greensburg, following the devastation of the tornado in May.
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.
Magill suggested a clause be added to the plan that would address disaster issues and the discontinuing of the program.
It was suggested Magill work with the county attorney.
In other business:
— A laptop computer was approved for the county's economic development director.
Three bids were presented with Great Plains Computers and Networking of Marion having the lowest bid of $1,156. CDWG had a bid of $1,246, and Lenovo (IBM) $1,181.
— The commission prepared evaluations for non-elected department heads.
A special meeting will be at 8 p.m. (today) Wednesday at the courthouse for the commission to continue the evaluation process.
