Tax collections are down this year in Howard County due in large part to Chrysler’s bankruptcy. Although Chrysler’s real estate taxes are considered secured debt, the $12 million Chrysler owes in personal property tax is not. However, Howard County Treasurer Marsha Lake said communities heavily affected by the car industry are getting some extra help from a provision in House bill 1001 the General Assembly passed in 2008.
“Taxes that are not paid by a transmission company would have the option to borrow from the State Rainy Day Fund,” Lake said. “We’re not the only community in Indiana that has a problem with delinquent taxes as far as the automotive industry is concerned.”
Lake said that if Chrysler were to take a loan from the state, the company would have ten years to pay it back. If the auto maker does not pay its owed taxes to the county, either by itself or through a loan, Lake says the deficit will have to be made up by county residents. For WFIU News, I’m Arianna Prothero.