1990-03-07 Minutes - Laserfiche WebLink

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2. In reference to the risk described in number 1 above, in the event there is excessive delay in completion of the Improvements so as to be delayed beyond • January 31, 1993 sufficient revenues may not be available to meet the interest payment due on August 1, 1993 and subsequent interest and principal payments. 3. In the event the Improvements should ever be totally or substantially destroyed, the lease rental shall be abated during the period in which the Improvements are unfit for their intended use. However, rental value insurance will be available to make Bond payments during the time the lease rental is abated, for a period of up to two years. If either (i) the cost of reconstruction of the Improvements would exceed the amount of insurance proceeds or (ii) such reconstruction cannot be completed within the period of time covered by rental value insurance, the insurance proceeds will be applied to the redemption of all outstanding Bonds and the full discharge of all obligations pertaining thereto, 4. No provision has been made either for redemption of the Bonds or for an increase in the interest rate on the Bonds in the event that interest on the Bonds becomes subject to income taxation. 5. In the event of delayed billing, collection, or distribution of property taxes by the county auditor, sufficient funds may not be available to the Commission in time to make lease rental payments when due. Procedures for Property Assessment, Tax Levy and Collection, and Tax Abatement Real Property in the State is assessed each -year as of March I. On or before August I each • year, the County Auditor must submit to each underlying unit a statement of (i) the estimated assessed value of the unit as of March I of that year, and (ii) an estimate of the taxes to be distributed to the unit during the last six months of the current budget year. The estimated assessed value is based on abstracts delivered to the Auditor by the Township Assessor on or before July 15. The estimated value is used when the Common Council meets to establish its budget for the next fiscal year (January I through December 31), and to set tax rates and levies. By statute, this must be done not later than the last Monday in August. The budget, tax levy and tax rate is subject to review and revision by the State Board of Tax Commissioners. On or before December 31, the County Auditor prepares and delivers the final abstract. The County Treasurer mails tax statements the following April. Property taxes are due and payable to the County Treasurer in two installments on May 10 and November 10. If an installment of taxes is not completely paid on or before the due date, a penalty of 10°~ of the amount delinquent is added to the amount due. On May 10 and November 10 of each year thereafter, an additional penalty equal to 10% of any taxes remaining unpaid is added. The penalties are imposed only on the principal amount of the delinquency. .Property becomes subject to tax sale procedures after 15 months of delinquency. Pursuant to State law, real property is valued for assessment purposes at its 'True Tax Value" as defined in rules and regulations promulgated by the State Tax Board. 'True Tax Value" does not mean fair market value. Beginning with property assessed in 1989 for taxes payable in 1990, the True Tax Value will be determined on the basis of property replacement cost which is based on actual material and labor costs prevalent in the State of Indiana in 1985. (Prior True Tax Value [from 1979 through 1988] had been based on 1975 replacement costs.) The local • assessor may subtract from the replacement value, an amount for normal depreciation, as provided in the. regulations, as well as amounts for functional or economic obsolescence, as -9-