Lawrence County Council Approves Tax Abatements

(BEDFORD) – Several tax abatements were approved during Tuesday’s Lawrence County Council meeting.

Lawrence County Assessor April Collins and Lawrence County Auditor Jodi Edwards reviewed the request for renewal and made sure each of the businesses were in compliance.

The purpose of a tax abatement is to achieve certain economic development growth goals for a region or community including:

  • 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.

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.

The following abatements were approved:

  • Lehigh Cement Company LLC – Personal and Real Estate Abatement for 10 years.
  • Indiana Limestone LLC – Personal and Real Estate Abatements for 10 years.
  • Orange County REMC – A 19-year abatement for Spice Valley, Bono, and Marion Townships as well as Pleasant Run, Shawswick, and Guthrie Townships.
  • C&M Conveyor – Personal and Real Estate Abatements of $448,820 Assessed Value in Personal Property and $1,506,700 in Real Estate.
  • D & M Tool Company – Granted two abatements of $1,116,560 in personal property granted for 10-year abatement, Real Estate Abatement for 10-year Abatement of $3,449.660 in assessed value.
  • PRD – Total of four tax abatements all for 10-years each at $4,414,370 in Personal Property.
  • Embree Machine Inc. – Personal Property granted for 9 years, $281,340 in assessed value. Under two abatements for property and two for real estate.