Letter: Jasper mayor; “but for” question reveals power of tax abatement
But for. These two words represent the essence of economic development laws in Indiana, especially tax abatement. The basis for any use of this tool is, “But for this tax abatement, would these new investments by your company be taking place? Yes, or No?”
When the answer is “No” the results have been astounding: Since 2012, Jasper’s abatement ordinance has yielded more than $68,000,000 of new investments including those of Jasper Engines & Transmissions, Indiana Furniture, Stens, Jasper Chair, Kimball Hospitality, Meyer Distributing, Cash Waggner, Miller-Valentine and Kimball Office. These investments also created hundreds of new jobs.
Our first tax abatement ordinance has been a very effective model which also was adopted by other local governments including Dubois County. It even became state law after being introduced at the legislature by then State Representative Mark Messmer.
Jasper’s ordinance employs a vigorous, objective scoring mechanism by our Economic Development Commission followed by a two-step approval process by the Council with every decision made at a public meeting. In addition, we require all abatement recipients to appear at a council meeting annually to report their status.
Not every business expansion in Jasper applies for abatement and not all are eligible, yet it complements our other programs and community amenities enabling us to have a level playing field in drawing talent, sustaining jobs and creating new employment. And since only new investment is eligible for abatement, there is no loss of existing government revenue because we can’t lose what we never had.
But for the abatements it’s unlikely $68,000,000 of new growth would be in place in Jasper the last four years and I’m quite confident tax abatement made us competitive with other cities who desire to have our companies in their communities.
Jasper’s economic development success speaks for itself at all levels.
Terry Seitz, Mayor
City of Jasper, Indiana
