Property Tax Abatement

Discussion in 'Homesteading Questions' started by duke3522, Jan 28, 2005.

  1. duke3522

    duke3522 Well-Known Member

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    Hi Everyone,

    Here in Grant County we are having another beautiful winters day. The sun is shining, the temp. is about 18 degrees, and I just wrote a check for my property taxes that was 12.2% higher than last year due to an error in the property tax abatement given to the local General Motors plant. (BTW this tax payment is for 2003 taxes due in 2004. So we get to pay again this year, but nobody knows when.) And I consider myself lucky because I only live in the school system effected by the error. In Marion (the city where the GM plant is located) my cousins taxes went up about 22%. The people outside Marion Community Schools, but in the county, saw minor increases due to the GM abatements. Now we are about to get a Wal-Mart distribution center that will be receiving allsorts of property tax abatements, road and utility improvements paid for by Gas City, the county, and the state. Also, last year my dear sister, who lives in a very nice part of Gary Indiana, had her property taxes increase from approx. $1450 to (get this) $9850. Incredible. The township made a sweetheart deal with USX so they wouldn’t have to pay property taxes on one of their CLOSED steel mills. Fortunately, the state stepped in and capped property taxes at 2% of excised value so dear sis was due a refund of about $7500. County says “sorry no refunds, we will credit your account.”

    And now poor Jim Ersay, owner of the Indy Colts, is going hat in hand to the state legislature for money to build the Colts a new home. The plan is to let the two horse tracks here in Indiana install “ Electronic Pull Tab Machines” (slot machines) to provide the revenues to pay for the bonds. But if for some reason the slot machines don’t generate enough cash to cover the bond payments Hoosier taxpayers get to cover the short fall. Heck why don’t we just go ahead and build a combination Casino, Brothel, Opium Den in downtown Indy. That would bring in the cash for the new stadium for sure.

    I guess my opinion boils down to this, if you have to have tax breaks to build your business here please feel free to go elsewhere. Those of us on a relatively fixed income cannot continue to pay higher and higher taxes to help others get jobs. Especially when, as in the case of our GM plant, very few of the people who work there actually live in Marion or the Marion Community Schools taxing units.

    Well I guess I have vented enough now and will just seal up the envelope and send off my $940 so the county will let me keep my own land.

    duke
     
  2. fordy

    fordy Well-Known Member

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    ...................Kissing Corporate ***** has become the Norm it seems . Business seems to beable to run roughshod over the rights of the tax payers in several different arena's . Tax abatement(s) being the primary issue , and Using the "eminent domain" laws to STEAL the Private Property from citizens when they want More than the Fair Market Value for their property than the developer wants to pay . We , as private citizens , Collectively , need to find a way to halt this legalized theft of our Property . You can't rely on your elected officials to champion your cause , Cause they are busy stuffing their pockets with Corporate Cash from the Corporation that wants the City Council to Steal Your land .
    ................Our Totally market driven economy allows all facets of Business and our Government to rationalize the Corrupt methods for Their Definition of the Rules that will be utilized when THEY deal with the Consuming Public . They have NO Conscience , NO Loyality , or sense of Commitment to the American Worker that was the Hallmark of the American Corporation in our recent Past ..fordy.. :eek: :rolleyes:
     

  3. indypartridge

    indypartridge Well-Known Member Supporter

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    Mayor Brat, I mean Bart, does want pull tabs in downtown Indy as well. Irsay complains that the Colts have one of the smallest stadiums in the NFL, but doesn't mention that that they rarely can even fill that, even with a winning team. So we must build a build a bigger stadium, with more luxury boxes for the rich. When Irsay threatens to take the team to LA, I'd call his bluff. The Rams couldn't make money there and left, the Raiders gave it try and went back to Oakland.
     
  4. Michael W. Smith

    Michael W. Smith Well-Known Member

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    Duke, perhaps I'm not understanding correctly, but tax abatement is usually "tax relief" to business' when they first start out in an area, or build a new building. I believe the first year they don't owe any property tax, the 2nd year it increases some, etc and about the 5th year they have to pay the full share of their property tax. I don't understand how you are having to pay more simply because a business moved in, built a building and got a tax abatement.

    In all actuality, once these business's are paying their full share, the county should be flowing with cash and the property owners should start to see a decrease in their taxes. However, I think what happens is the big shots of the county see all this cash that will soon be coming into their coffers in a few years and decide they need raises, and nows a good time to buy this and that, and by then they are back to being cash poor wondering how they can balance their budget.

    Or am I missing something?
     
  5. Jena

    Jena Well-Known Member

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    The property tax increases in Indiana were caused because they changed the way they assessed property. It doesn't really have anything to do with any abatements.

    I owned a house in Terre Haute. The taxes went up 300%. I lost that house through foreclosure because I could not afford to pay another $600 per month on my mortgage.

    It kind of makes me mad that those in Gary found a way around the state imposed tax reassessment. I wonder why Vigo County couldn't have capped my taxes? Maybe I'd still have a house....

    Some parts of Indiana haven't been re-assessed yet. If you own property there, better watch out.

    Jena
     
  6. duke3522

    duke3522 Well-Known Member

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    Topic Review (Newest First)
    Posted by Jena - Today at 03:21 PM
    The property tax increases in Indiana were caused because they changed the way they assessed property. It doesn't really have anything to do with any abatements.


    No… we got that 30% increase last year. This increase is due to the GM tax abatement. The story is that GM was over charged $89 million in property tax due to a miscalculation in the “Enterprise zone” tax credit they receive. This tax credit is basically permanent for our GM plant

    As for the tax abatement timing. I believe that the Wal-Mart center is getting a 15 year property tax abatement for real property and since Indiana is about to eliminate the business property tax (a move I agree with) they don’t have to worry about equipment. But let’s wait and watch. I would not be surprised to see Wal-Mart before the city and the county wanting more before long. If they can find a way to extend the enterprise zone to the distribution center, just like our GM plant now, Wal-Mart may never pay the full property tax rate.

    Oh…I also forgot to mention that Gas City sold Wal-Mart the 180 acre parcel for the sum of $1.

    Hey, I am not anti-Grant county, and I am really glad to see the jobs come to town. But those of us who own homes and are trying to make it on low incomes just cannot continue to pay to keep a job in our tax district that is most likely going to be filled by a person who lives out side our tax district. Again, our GM plant is an excellent example. My father-in-law put in 37 years there and never lived within 30 miles of the place. My estimate is that less than half of the GM employees live in the local school district, and that between 20-25% don’t live in the county at all.
     
  7. mzzlisa

    mzzlisa Well-Known Member

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    Duke,
    Its nice to see someone else ticked off about the new stadium! Most people I know want it.
    When it floods, the Indianapolis sewer system backs up into the water system, and the city schools don't have air conditioning (and they usually start back to school in August), but we gotta have a new stadium. And now our illustrious governor is cutting school funding. I say when the Colts win a Superbowl, then they can have a new one. There is nothing wrong with the current one, its just not "new". Their consumer mentality is showing!
     
  8. BobBoyce

    BobBoyce Well-Known Member

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    Our taxable values, and the resultant taxes for 2004 went up 300% for woodland and 333% on homesite after a re-assessment.

    Still way better than taxes in some areas. We are concerned about the future, property tax increases are outpacing our social security cost of living increases by more than 100 to 1.

    Bob
     
  9. Cindy in PA

    Cindy in PA Well-Known Member

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    Well, Cabela's got a 20 year no school tax deal here. Your thoughts on how it will be is great if the business lasts that long. They did all the free tax deals with the Reading Outlets here and now 20 years later many have closed. These new businesses have no loyalty to the area, it is just whoever gives them the biggest break. Will Cabelas be here to pay taxes in 20 years, yes probably, but there is absolutely no guarantee.
     
  10. JustinThyme

    JustinThyme Active Member

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    The whole thing smells of Sherrif of Nottingham