Letter: Mayor Seitz: Investment wouldn’t occur without tax abatements
Recent meetings of the Dubois County Council have called into question the abatement process for the county and one council member has chosen to include the City of Jasper in her remarks. The suggestion that the city, the county, schools, or any other taxing entity has been harmed by the tax abatement program implemented by the City of Jasper ignores the rigors of the program and a misunderstanding of the process.
Jasper’s abatement ordinance was adopted in the fall of 2011. Since then our Economic Development Commission has received 11 inquiries for abatement review, passing the majority onto the Jasper Common Council for consideration. These applications indicated $43 million of new investment and a forecast of more than 400 new jobs, quite a boost for the local economy.
Initial research by the Jasper Action Team identified a concern about subjective favoritism seen in other abatement programs. In response, Jasper’s ordinance includes a very objective scoring system removing politics from the process and credits existing local companies. Either you earn an abatement based on the scoring criteria, or you don’t. In Jasper, all companies receiving abatement submit to annual checks and balances by filing reports and appearing in person at the common council.
Those raising questions ignore the “BUT FOR” qualification that must be met by any abatement applicant which states but for the abatement award, the investment will not occur. In other words, if there is no abatement there is no investment.
As to calling abated property taxes “lost revenue” let us remember there would be no new assessed value without the new investment. The abatement encourages the immediate investment for the delay of taxes for a limited time. Council President Greg Kendall is right when he says, “(in the future) that new piece of equipment or new part of the factory is going to start paying dividends for us.”
Recently IU professor Drew Klacik was quoted in local media saying, “You either invest in your future, or you manage your decline.”
Jasper is glad to have private companies join the City of Jasper as we invest in our future.
Jasper Mayor Terry Seitz
