County to appeal tax limit

Jay County Council approved its 2010 budget, but is appealing the state for about an additional $750,000 to be added to the amount it can raise through property taxes.

The council ratified the budget and salary ordinance on second reading Wednesday night, but is asking the state for the additional money because the state reportedly mishandled the county's property tax relief money and because of additional expenses the county will incur due to the Jay County Jail expansion.

The county, when it enacted the Local Option Income Tax several years ago, had a choice of how it wanted to receive the property tax relief portion of the proceeds from the LOI tax.

"We had a choice of spreading that out," said council president Gerald Kirby, saying that money could be distributed all in one year or over three years. "We chose three years."

State officials, Kirby said, ignored that request "contrary to our desires" and applied all of the property tax relief this year without informing county officials that they did so.

"We've come up with a big shortfall," Kirby said, stating that the LOIT money the council thought they had is $294,170.

"I did not know that (the three-year spread) had been denied," Kirby said. "We did not get word that it had not been granted. ... It isn't something we messed up."

The county is also requesting to add about $450,000 to its max levy to handle future operating costs from the Jay County Jail expansion.

The county expects to have the new jail building open and operating by fall 2010.

Financial adviser Greg Guerrettaz said the county probably won't get the jail portion of the request but advised the council there is no harm in trying.

"That's the part he doesn't think will go through," said councilwoman Marilyn Coleman of the jail request.

Council members signed a resolution appealing the max levy and will deal with the Department of Local Government Finance to try to get that money added for 2010.[[In-content Ad]]