Howard County and Delphi Corporation have reached a conclusion to a dispute over the company’s back property taxes. The auto parts supplier has agreed to pay its back taxes in exchange for the county waiving $1.9 million in late fees. The $6.4 million in unpaid personal property and real estate taxes stem from the tax period in the fall of 2005 when Delphi filed for Chapter 11 bankruptcy. Howard County Attorney Larry Murrell says taxing entities are usually able to collect real estate taxes in Chapter 11 cases, but personal property taxes are often another matter.
Murrell says it remains to be settled as to whether or not the county will recover interest that Delphi earned on that money over the last two years. Howard County and the school district had taken zero-interest loans from the state Rainy Day Fund to pay for services while this case was pending. Murrell says they will share the settlement in order to pay those loans back. He says county officials still consider Delphi to be an excellent corporate citizen, and that the company has made all of its other tax deadlines. Delphi employs about five thousand people at its Kokomo operations. The company shut down its plant in Anderson last year.