Chrysler only paying portion of taxes due in Howard County

ken.delabastide@kokomotribune.com

Taxing units in Howard County will not be receiving $6.1 million in personal property taxes owed by Chrysler LLC for the spring and the $12.2 million due for the fall unless an agreement is reached.

Chrysler LLC has agreed to pay $2.2 million in real estate taxes that were due Friday, according to county attorney Larry Murrell. Murrell said Chrysler has indicated it may pay the fall real estate taxes early pending the outcome of an appeal it has filed on the assessed value of Indiana Transmission Plants 1 and 2.

"The personal property taxes are not going to be paid," Murrell said. "We are still in negotiations about personal property. The real estate has been resolved the personal property discussions is ongoing."

The four taxing units that will be impacted by the non-payment of the personal property taxes is Howard County, city of Kokomo, Northwestern School Corp. and Kokomo-Center Schools.

Murrell said the county will be filing a claim with the U.S. Bankruptcy Court in New York for the unpaid personal property taxes.

County officials have been in discussions with Sen. Evan Bayh, Rep. Joe Donnelly, D-2nd District, and Rep. Dan Burton, R-5th District, in an attempt to receive federal funds to cover the amount of the unpaid taxes.

Legislation is included in both the Indiana House and Senate proposed budgets to provide loans to Howard County from the Indiana Rainy Day Fund.