Kokomo — Chrysler’s delinquent taxes will mean Kokomo-Center Schools’ taxpayers must pay more.
The Kokomo-Center School Board Monday approved applying for an emergency loan from the state to cover the $2,311,655 Chrysler owes in back taxes, in order to meet cash balance requirements and to continue with school operations.
Superintendent Jeff Hauswald said Chrysler is making payments on what it owes, over six years. He said the loan will help the district sustain the current spending as planned, and is similar to a loan taken last year.
Board member Joe Dunbar asked if there would be interest to pay on the state loan, and Hauswald said he believes it will be about 2 percent, which Chrysler will not have to pay.
“There is a cost to the taxpayers because of the delinquent payments,” Hauswald said.
He said as the tax payments come in to the Howard County Auditor’s Office, it will go straight to the state to pay back the loan.
He said after 2010, with Chrysler paying back taxes and current taxes, the corporation should not have to ask for another emergency loan.