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Boone County Tax Abatements
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2015 Boone County Tax Abatements Overview
The Boone County Auditor published on January 31, 2015, in The Lebanon Reporter the “report of approved Real Estate and Business Personal Property Abatements in Boone County, Indiana as of December 31, 2014.”
There were a total of 49 listed 2015 tax abatements in Boone County
totaling $158,901,645 in assessed value that were distributed within five
taxing units as follows:
Harrison Township – 2 tax abatements for $26,630 in assessed value;
Lebanon – 22 tax abatements for $62,300,805 in assessed value;
Whitestown – 11 tax abatements for $82,084,960 in assessed value;
Whitestown/Perry – 12 tax abatements for for $14,399,170 in assessed value;
and
Zionsville/Eagle Urban – 2 tax abatements for $90,080 in assessed value.
The 2015 property tax rates (expressed in dollars per one hundred
dollars of assessed value) for the five taxing units with tax abatements were as
follows:
Harrison Township – $1.0362
Lebanon – $2.2878
Whitestown – $2.4871
Whitestown/Perry – $2.4853
Zionsville/Eagle Urban – $2.1364
Multiplying the 2015 property tax rate by one hundred dollars of 2015 tax abated
assessed value reveals that the values (or property owner tax savings) of the
2015 tax abatements for the five taxing units were as follows:
Harrison Township – $276
Lebanon – $1,425,318
Whitestown – $2, 041,535
Whitestown/Perry – $357,863
Zionsville/Eagle Urban – $1,924
TOTAL 2015 VALUE – $3,826,916
2015 Lebanon Tax Abatements
All of Lebanon’s 22 tax abatements in 2015 were initially 10-year tax abatements. The 2015 property tax savings for the 12 Lebanon companies that were awarded the 22 tax abatements are listed next.
Aurora Parts
(500 S. Enterprise Boulevard)DA Lubricant
(801 Edwards Drive)Festool USA
(400 N. Enterprise Boulevard)Hachette Book Group
(121 N. Enterprise Boulevard)IBC Coating Technologies
(902 Hendricks Drive)Indiana Repair and Welding
(900 S. State Road 39)L. T. Rich
(1004 Hendricks Drive)MSI Packaging
(352 N. Enterprise Boulevard)Purity Wholesale Grocers
(100 Purity Drive and 300 Purity Drive)Skjodt-Barrett
(521 S. Enterprise Boulevard)Subaru of America
(945 Monument Road)United States Cold Storage
(415 S. Mt. Zion Road)Aurora Parts, IBC Coating Technologies, Indiana Repair and Welding, L. T. Rich, Subaru of America, and United States Cold Storage are located outside the Lebanon Tax Increment Financing District. Therefore, the $699,990 in total 2015 property tax savings for these six Lebanon companies is made possible by a higher property rate imposed on every Lebanon property owner. Stated another way, Lebanon’s 2015 property tax rate would have been lower if these six companies had not been awarded tax abatements.
DA Lubricant, Festool USA, Hachette Book Group, MSI Packaging, Purity Wholesale Grocers, and Skjodt-Barrett are located inside the Lebanon TIF District. The $725,328 in total 2015 property tax savings for these six Lebanon Companies would have been paid to the Lebanon Redevelopment Commission if the companies had not received tax abatements. Stated another way, $725,328 is not available for the Lebanon Redevelopment Commission to spend for the betterment of the city because these six companies were awarded 2015 tax abatements. (Of course, the Lebanon Redevelopment Committee has been known to squander its tax dollars – the $1.71 million spent on the “decorative” State Road 39 bridge panels is one example.)
The low-wage job market in Boone County is saturated, and it is poor public policy to grant tax abatements to more low-wage Lebanon companies because the taxes they pay do not outweigh the public and private costs that result from the low wages they pay their employees. It is questionable if companies such as United States Cold Storage, Purity Wholesale Grocers, and Hachette Book Group deserve tax abatements because their employees earn an average salary that is less than $18 an hour. Granting tax abatements to companies like Aurora Parts, Festool USA, and IBC Coating Technologies can make sense because these employers pay an average salary that exceeds $26 an hour.
Latest Lebanon CF-1 Forms "COMPLIANCE WITH STATEMENT OF BENEFITS"
Each company that receives a tax abatement from the City of Lebanon must submit an SB-1 Form "Statement of Benefits." Every year before May 15, each company must also file with the Lebanon City Council a CF-1 Form regarding compliance of the company's tax abatement project(s) with the employment and real estate improvement promises included in the SB-1 Statement of Benefits Form. The Lebanon City Council may terminate a tax abatement if a company has not made reasonable efforts to substantially comply with the SB-1 Statement of Benefits Form.
Posted next are the latest CF-1 Compliance with Statement of Benefits Forms received from the companies that have been awarded tax abatements by the Lebanon City Council. The Lebanon City Council has found each company to be in substantial compliance with the employment and real estate improvement promises included in the SB-1 Statement of Benefits Form(s).
Aurora Parts
The average annual salary is equal to the $9,598,477.40 total salaries divided by the 78 employees, or $123,057.40.
The average weekly salary is equal to the $123,057.40 average annual salary divided by 52 weeks, or $2,366.48.
The average hourly salary is equal to the $2,366.48 average weekly salary divided by 40 hours, or $59.16.
The total 2015 tax savings for Aurora Parts from two tax abatements is $21,753 - or $279 for each of the 78 employees.
DA Lubricant
A CF-1 Compliance with Statement of Benefits Form has not been provided.
The total 2015 tax savings for DA Lubricant from one tax abatement is $45,411.
Festool USA
The average annual salary is equal to the $2,347,000.00 total salaries divided by the 42 employees, or $55,880.95.
The average weekly salary is equal to the $55,880.95 average annual salary divided by 52 weeks, or $1,074.63.
The average hourly salary is equal to the $1,074.63 average weekly salary divided by 40 hours, or $26.86.
The total 2015 tax savings for Festool USA from two tax abatements is $16,931 - or $403 for each of the 42 employees.
Hachette Book Group
The average annual salary is equal to the $10,753,573.25 total salaries divided by the 290 employees, or $37,081.28.
The average weekly salary is equal to the $37,081.28 average annual salary divided by 52 weeks, or $713.10.
The average hourly salary is equal to the $713.10 average weekly salary divided by 40 hours, or $17.82.
The total 2015 tax savings for Hachette Book Group from two tax abatements is $173,369 - or $598 for each of the 290 employees.
IBC Coating Technologies
The average annual salary is equal to the $2,739,000 total salaries divided by the 50 employees, or $54,780.
The average weekly salary is equal to the $54,780 average annual salary divided by 52 weeks, or $1,053.46.
The average hourly salary is equal to the $1,053.46 average weekly salary divided by 40 hours, or $26.33.
The total 2015 tax savings for IBC Coating Technologies from five tax abatements is $34,159 - or $683 for each of the 50 employees.
Indiana Repair and Welding
A CF-1 Compliance with Statement of Benefits Form has not been provided.
The total 2015 tax savings for Indiana Repair and Welding from two tax abatements is $3,533.
L. T. Rich
A CF-1 Compliance with Statement of Benefits Form has not been provided.
The total 2015 tax savings for L. T. Rich from one tax abatement is $21,034.
MSI Packaging
The average annual salary is equal to the $1,746,000 total salaries divided by the 38 employees, or $45,947.36.
The average weekly salary is equal to the $45,947.36 average annual salary divided by 52 weeks, or $883.60.
The average hourly salary is equal to the $883.60 average weekly salary divided by 40 hours, or $22.09.
The total 2015 tax savings for MSI Packaging from one tax abatement is $31,824 - or $837 for each of the 38 employees.
Purity Wholesale Grocers
The average annual salary is equal to the $2,950,000 total salaries divided by the 80 employees, or $36,875.
The average weekly salary is equal to the $36,875 average annual salary divided by 52 weeks, or $709.13.
The average hourly salary is equal to the $709.13 average weekly salary divided by 40 hours, or $17.72.
The total 2015 tax savings for Purity Wholesale Grocers from two tax abatement is $441,982 - or $5,525 for each of the 80 employees.
Skjodt-Barrett
A CF-1 Compliance with Statement of Benefits Form has not been provided.
The total 2015 tax savings for Skjodt-Barrett from one tax abatement is $15,811.
Subaru of America
The average annual salary is equal to the $4,632,303 total salaries divided by the 109 employees, or $42,498.19.
The average weekly salary is equal to the $42,498.19 average annual salary divided by 52 weeks, or $817.27.
The average hourly salary is equal to the $817.27 average weekly salary divided by 40 hours, or $20.43.
The total 2015 tax savings for Subaru of America from one tax abatement is $341,826 - or $3,136 for each of the 109 employees.
United States Cold Storage
The average annual salary is equal to the $2,670,376.18 total salaries divided by the 74 employees, or $36,086.16.
The average weekly salary is equal to the $36,086.16 average annual salary divided by 52 weeks, or $693.96.
The average hourly salary is equal to the $693.96 average weekly salary divided by 40 hours, or $17.34.
The total 2015 tax savings for United States Cold Storage from two tax abatement is $277,685 - or $3,753 for each of the 74 employees.
CNH America
The average annual salary is equal to the $23,383,896.70 total salaries divided by the 631 employees, or $37,058.47.
The average weekly salary is equal to the $37,058.47 average annual salary divided by 52 weeks, or $712.66.
The average hourly salary is equal to the $712.66 average weekly salary divided by 40 hours, or $17.81.
CNH America has no 2015 tax abatements.
Gander Mountain
The average annual salary is equal to the $4,500,000 total salaries divided by the 154 employees, or $29,220.77.
The average weekly salary is equal to the $29,220.77 average annual salary divided by 52 weeks, or $561.93.
The average hourly salary is equal to the $561.93 average weekly salary divided by 40 hours, or $14.04.
Gander Mountain has no 2015 tax abatements.
Conclusions: City of Lebanon Tax Abatements
CF-1 Compliance Forms were properly submitted for 8 of the 12 Lebanon companies that received 2015 tax abatements. CF-1 Compliance Forms were not submitted as required for DA Lubricant, Indiana Repair and Welding, L. T. Rich, and Skjodt-Barrett. However, CF-1 Compliance Forms were submitted for CNH America and Gander Mountain even though they were not awarded 2015 tax abatements.
The CF-1 Compliance Forms submitted for 8 of the 12 Lebanon Companies receiving 2015 property tax abatements reveal the Property Tax Savings Per Employee listed in Table 1 below.
Table 1. 2015 Tax Abatement Property Tax Savings Per Employee
Table 2. Average Hourly Salaries
The conclusions listed next result from an analysis of the data included in the foregoing Tables 1 and 2.
(1) The Lebanon City Council should insist that all Lebanon companies receiving tax abatements be required to submit a CF-1 Compliance Form every year. DA Lubricant, Indiana Repair and Welding, L. T. Rich, and Skjodt-Barrett should be required to show they have fulfilled the employment and real estate improvements they promised in order to receive their tax abatements – they should not avoid the possibility of tax abatement termination by the Lebanon City Council simply by failing to submit a CF-1 Compliance Form.
(2) When judged by the criteria of 2015 Tax Abatement Property Tax Savings Per Employee, the tax abatements awarded to Purity Wholesale Grocers, U. S. Cold Storage, and Subaru of America were overly generous. Any proposed tax abatement with a property tax savings of more than $1,500 per employee should be carefully scrutinized before being awarded.
(3) Tax abatements have been awarded to companies that do not pay their employees a Get-Ahead Wage of at least $20 an hour (see http://www.finplaneducation.net/get_ahead_wage.htm). The average hourly salaries of Hachette Book Group, Purity Wholesale Grocers, and U. S. Cold Storage are low enough so that a three person household in Lebanon would qualify for reduced price school lunches. Any proposed tax abatement for a company that does not offer new employees a starting salary of at least $20 an hour should be carefully scrutinized before being awarded. The public and private assistance costs are too high when Lebanon elected officials award tax abatements and other incentives to companies that do not pay their employees a Get-Ahead Wage.
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This page was last updated on 08/05/15 .