County Council to review tax abatement process

A few Dubois County Council members are seeking some better oversight and greater clarification on the tax abatement process.

The tax abatement ordinance adopted by the county council in 2012 allows companies expanding or relocating to the area to abate personal and real property taxes for a certain amount of time. Applicants are scored on different categories like job creation, special programs, wages and benefits, whether the company is reusing existing structures and more. A committee scores the application and recommends the amount and length of the tax abatement according to that score. Lower scoring applications receive shorter tax abatements.

Councilwoman Becky Beckman told her fellow council members she would like to see more scrutiny in regards to existing companies in the area that take advantage of the tax abatement program for nearly the maximum time allowed — ten years — without adding new jobs.

With the county’s budget bumping up against the property tax cap, the county option income tax (COIT) has been viewed as an alternative source of funding.

Beckman said she would also like to add members to the review committee making the tax abatement recommendations. Currently, the council president, commission president and county auditor review the tax abatement application for recommendation to the council.

“What I keep hearing from constituents — and I think they lump us in with the city [Jasper] — is we give too much for too long,” Beckman said.

Beckman explained she would like to add some expertise that doesn’t exist within the council to the committee. She pointed out the tax abatement application includes a five-point category for using green or environmentally-friendly technology or methods. She questioned whether anyone on the council and committee could verify a business’s claim they were using green technology.

She also feels businesses should not receive points for existing infrastructure.

Councilman Greg Kendall disagreed.

Kendall said he didn’t think it was necessary to change the ordinance and the scoring procedure, which is based on the ordinance Jasper created in 2012.

Kendall also didn’t think it was necessary to form another committee that would simply be reporting to the council anyway. “We have followed every guideline of the abatement process,” Kendall said to Beckman. “Why?”

“To make it fair to the taxpayers,” she responded.

“They have elected us to do the job because they trust us to do the job,” Kendall said. “I just question making more and more and more committees. I don’t think they are needed.”

Councilman Craig Greulich told Kendall he thought it was a good idea to make the businesses accountable.

Councilwoman Martha Wehr said she thought it would be good to add the assessor’s office to the abatement review committee. But, she added that the committee should not include private individuals or businesses; the committee should continue to be elected officials. “You might have a business person looking at a tax abatement and they may be a competitor of the business applying,” she said.

Councilman Nick Hostetter told Wehr the committee could just invite someone with the needed expertise to advise rather than create a permanent position. “I am not opposed to calling someone for them to give us their opinion,” he said. “I don’t like the idea of adding bureaucracy and red tape.”

Councilwoman Charmian Klem recommended the council review the ordinance to see if it needs adjustments. In August the council will be reviewing and approving the 2017 budget so the review and discussion of the tax abatement process was moved to September.