INDIANAPOLIS | The state has postponed a threat to withhold millions in local assistance to Lake, Porter and dozens of other counties that owe property tax data from as far back as 2004.
At stake are property tax replacement credits -- state money used to help run local governments in lieu of higher property taxes. The state was set to withhold $4 million from Lake County government and $1.1 million from Porter County later this month.
But Cheryl Musgrave, commissioner of the Indiana Department of Local Government Finance, delivered a reprieve earlier this month, giving counties another month to three months to turn over the delinquent data. Most of the information is not needed to calculate current tax bills, which already are months late here in the region.
But Musgrave took a hard-line stance on the delinquent data after taking office in July. County officials originally had until Oct. 15 to hand over the old information, which the state wants to build forecasting that could be used to gauge property tax reform plans that come before the General Assembly.
Back in August, only one county -- Pulaski -- was completely data compliant. State officials could not say Monday how many counties have turned in all their homework, but a state review completed Oct. 4 showed more than half of Indiana counties still owed certain data sets.
In an Oct. 5 letter, Musgrave gave counties until Nov. 15 to hand over 2006 data, set a Dec. 15 deadline for 2005 data and gave counties until Jan. 15 to deliver information originally due in 2004.
Porter County paid an outside firm $43,000 to prepare its 2004 and 2005 data for taxes on business equipment and machinery. The information was shipped downstate Friday.
"We didn't need to pay $43,000 to have these things input electronically, but we didn't have the time to do it," said Porter County Assessor John Scott. "We knew we couldn't get it done by the date (the state had) given us."
Even with the extension, Scott added, the county probably could not have handled the work without the contractor's help.
Debra Johnson, deputy assessor for Lake County, said, "We shouldn't have a problem (meeting the extended deadlines)."
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