1990-03-07 Minutes - Laserfiche WebLink

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the assessor deems appropriate in accordance with the regulations to determine the True Tax Value. The "Gross Assessed Value" is equal to 33-1/3°~ of the True Tax Value, as defined above. "Net • Assessed Value" represents the Gross Assessed Value less certain deductions for mortgages, veterans, the aged, the blind, economic revitalization, and tax-exempt property. The Net Assessed Value is the value used for taxing purposes in the determination of tax rates. Indiana Code 6-1.1-21-5 provides that each year taxpayers will receive a credit for property tax replacement, known as the "property tax replacement credit" (PTRC), in the amount of twenty percent (20%) of their tax liability for taxes as defined under IC 6-1.1-22-9 which are due and payable in May and November of that year. The credit is applied to each installment of taxes. However, the tax liability of a taxpayer does not include the amount of any property tax owed by the taxpayer attributable to certain specified components of the tax levy. Among the tax levy components-not receiving the PTRC are the property taxes that will be used to pay for principal and interest due on debt entered into after December 31, 1983. The Indiana Code 6-1.1-12.1 provides a mechanism by which a governmental unit may authorize a property tax deduction for real property and for new manufacturing equipment within an economic revitalization .area. The City of South Bend has chosen to use this tax abatement mechanism to encourage economic development in targeted areas. Most of the recent projects in the South Bend Central Development Area have received tax abatements. Ordinance Number 7661-86, amending Chapter 2, Article 6 of the City's Municipal Code dealing with tax abatement procedures, was passed by the Common Council on July 14, 1986, (effective upon passage) which Ordinance was further amended by Ordinance Number 8065- 90 on February 12, 1990 (expected to be effective by mid-March, 1990). The Ordinance, as further amended, sets the standards and procedures by which petitions for tax abatements are considered by the Council and establishes eligibility criteria. • Pursuant to State law, the Council may grant the tax abatement for real property for a period of (i) three, six or ten years, if the petition is filed after January I, 1986, or (ii) ten years if filed after December 31, 1978 but before January I, 1986. The deduction is equal to the increase in assessed value resulting from the rehabilitation or new development, multiplied by certain prescribed percentages. Future Financing The City of South Bend will issue $5,900,000 Tax Anticipation Time Warrants dated March 20, 1990. Such Warrants will be due December 28, 1990 and are payable from current revenues to be received in the General Fund from the 1990 tax distribution heretofore levied. The South Bend Redevelopment District is planning to sell $4,900,000 Special Taxing District Bonds in April, 1990 to finance public improvements in the Studebaker Corridor area. Rating An application for a rating of this Issue has been made to Moody's Investor's Service, Inc. ("Moody's"), 99 Church Street, New York, New York. If a rating is assigned, it will reflect only the opinion of Moody's. Any explanation of the significance of the rating may be obtained only from Moody's. There is no assurance that a rating, if assigned, will continue for any given period of time, or • that such rating will not be revised or withdrawn, if in the judgment of Moody's, circumstances -10-