Tax settlement results in $600,000 credit for GM
But company generally accepts county's assessment of plant
Friday, November 08, 2013 08:06 am
Although settlement of a tax dispute between Allen County and General Motors generally appears to have favored the county, it will result in a temporary $600,000 reduction in revenues for some local governments.As The News-Sentinel reported Thursday, GM has contested the county’s assessment of its truck plant at Lafayette Center Road and plant Interstate 69 since 2006, when GM placed the taxable value of its property at $48 million. Last year, however, it claimed the plant was worth just $35 million. In 2009 the county agreed to reduce the plant’s assessed value by 25 percent, from $101 million in 2007 to $75.6 million. As of last year, the plant was assessed at about $74.9 million and paid about $1.3 million in property taxes in 2011. The Plant could pay as much as $4.7 million in taxes this year, according to county Auditor Tera Klutz.
Under the agreement, GM will settle its 2008-2012 tax appeals without changing the county’s original assessed value for those years. Allen County, meanwhile, will lower the 2006 and 2007 assessed values and a refund will be paid to GM in the form of tax credits against the company’s property taxes due in 2014 and 2015. Those credits will total about $600,000, Klutz said.
As a result, governments that receive taxes from GM – including Allen County, the Southwest Allen County Schools, the Airport Authority and others – will share the effects, she added.