Jasper Action Team representatives make a statement regarding recent misconceptions about tax incentive plan
Jim Skillman and Rick Stradtner are two individuals on the Jasper Action Team Incentive Sub-Committee. In light of certain political statements being made and the subsequent reaction in the local media by citizens of Jasper they felt it was necessary to explain how the program is designed to work.
The sub-committee has six members which, besides Stradtner and Skillman includes, Bingham McHale Partner Eric Schue, Jasper Chamber Executive Director Nancy Eckerle, VUJC Dean Alan Johnson, and Sell 4 Free owner Andy Welsh. This team is instrumental in developing the incentive program that is now known as Indiana House Bill 1007. This house bill passed the Indiana House of Representatives and the Indiana State Senate with unanimous bipartisan support.
After this success at the state level the team has struggled to get the package passed locally in spite of the fact the incentive is a Jasper and Dubois County Initiative. Last month the Jasper Common Council passed the first portion of a new incentive package that dealt with property tax abatements. Two local companies, Indiana Furniture and Stens, immediately applied for the program for future expansions and they were approved at the last Jasper Council Meeting.
The portion of the Jasper Action Team plan that has yet to be passed deals with incentives specifically designed to create jobs. The incentive’s that deal with County Option Income Tax (COIT) and Economic Development Income Tax (EDIT) are based on creation of new full time employees that earn 160% of the state minimum wage. This is based around the creation of jobs.
Rebates to the company would be generated only after the city has confirmed the company has earned the incentive. The company will be required to make an annual filing for review and the rebate will not be paid to the company until the city receives its portion of the revenue share; approximately 1/3 of 1%. This can take up to 18 months.
The current debate is centered on the unrestricted use of the tax rebate that the company receives. In light the recent bail outs and the scandals associated with excessive bonuses paid to high level executives, the concern is that companies will use the rebates to fund “Hawaiian Vacations” and “gambling excursions”.
According to Skillman most companies have a board of directors or investors they must answer to before making such decisions about the use of such money, local companies won’t be running to French Lick to gamble these tax rebates. A prudent company would reinvest in its own program and continued expansion.
