(BEDFORD) – The City of Bedford is looking to try to recover the tax abatement for Manchester Tank after the facility plans to close in June of this year.
While officials are looking to recover the abatements, WBIW looked at the companies receiving abatements throughout Lawrence County.
Tax abatements play an important role in economic development and job growth for a community.
Tax abatements are used for five main purposes:
- Building Improvements – Any new structure, building addition, or other improvements that increase the assessed value of the facility.
- New Manufacturing Equipment – Any new equipment that is used in the direct production, manufacturing, fabrication, assembly, of a product. Used equipment can also be eligible for abatement.
- New Logistical Distribution Equipment – Any equipment that is used for storage or distribution of goods, services, or information.
- New Information Technology Equipment – Any equipment, including software, that’s used in information processing, office automation, telecommunications, etc.
- Research And Development – Any equipment used in experimental or laboratory research and development of new products, new uses of existing products, or improving or testing existing products.
Abatements are granted to industries and manufacturers that are located within an Economic Revitalization Area. In Lawrence County, there are 29 such designations.
The purpose of a tax abatement is to achieve certain economic development growth goals for a region or community.
- Retaining or attracting employment positions for a specific company or industry.
- Directing private investment for the revitalization of distressed local economies or areas of a community as part of a redevelopment or economic development programming.
- Increasing long-term assessed value valuation for a taxing unit
- Addressing location cost disadvantages or gap financing.
Tax abatements are an Assessed Valuation Deduction, which is an annual percentage of savings of assessed valuation as the result of new investment. This may be used to provide gap financing or incentive to locate within an area. This could also be used as a tool to create employment positions, and other promises to perform certain actions.
Tax abatement of qualified, tangible property is a useful economic development tool for any county, city, and town municipal government. It is very important in sustained long term development.
Here is a list of Real and Personal Property Abatements in Lawrence County:
- Lehigh Cement Company LLC – Personal and Real Estate Abatement 10 years.
- Indiana Limestone Acquisition, LLC – Granted for 10 years.
- Orange County REMC – 19-year abatement, but no application for 2019, for Spice Valley, Bono, and Marion Twp., as wells as Pleasant Run, Shawswick, and Guthrie Townships.
- C & M Conveyor – Personal and Real Estate Abatements $448,820 Assessed Value in Personal Property, and $1,506,700 Real Estate.
- Blacktail Bow Company, LLC – Real and Property Abatements no abatement filed for 2019.
- D & M Tool Company – Grant for 10-years two abatements granted. $1,116,560 in personal property granted for 10-year abatement, Real Estate for 10-year Abatement for $3,449,660 in Assessed Value.
- PRD Inc. – Total of four tax abatements all for 10-years each $4,414,370 in Personal Property,
- Embree Machine Inc. – Personal property granted for 9 years, $281,340 in Assessed Value.
- Bedford Development Group LLC – 10-year abatement. Real Property $1,103,600 in assessed value.
- Bedford Machine & Tool Inc. – Personal Property 3 Abatements for 10 years each $3,328,490 in assessed value.
- DS Fab & Tool Inc. – Personal Property $30,310 in Assessed Value.
- DST Real Estate LLC. – 10-year abatement $552,600
- F.D. H. LLC – Fred Herthel Real Estate – $221,700 Abatement
- General Motors – Personal Property in six abatements for 10-years each $124,257,460 in Assessed Value
- GEO Flo Products – Personal Property for ten years, $515,990 in Assessed Value
- IN-Fab Inc. – Real Estate granted for 10 years no abatement application filed for 2019.
- LNL Empire Group LLC – Real Estate Granted for five years, $348,600 in Assessed Value.
- McWane Inc. Manchester Tank – Real Estate granted for 10 years, $1,982,900.
- Nan-Lee Properties – Real Estate, $170,800 in assessed value.
- Stalker Apartments LP – Real Estate, granted for 10-years Total Abatement $507,900.
- Stone City Products – Personal Property $2,447.280 in Assessed Value.
- Stonecutters Place LP – Real Estate $962,200.
The total collected in fees for the four Economic Development Corporations for 2019 was 15 percent in assessed value. The total amount collected was $233,265.95.
The following Economic Development Corporations received:
- Lawrence County Economic Growth Council – $61,560.83
- Bedford Redevelopment Corporation – $168,426.61
- Bedford Revitalization Inc.- $187.75
- Bedford Urban Enterprise Zone – $3,090.76
