Published: November 10, 2009 10:49 pm      

County receives Delphi, Chrysler property tax payment

As promised, the Howard County Treasurer’s Office received a check from General Motors, paying all real and personal property taxes owed by Delphi Corp.

Treasurer Martha Lake said she received a check in the amount of $3,795,497 from GM for the fall payment. Lake said she also received a $68,000 check for taxes owed when Delphi filed for bankruptcy in 2005.

GM acquired Delphi in September, as both companies emerged from bankruptcy.

A court order signed in August spelled out that GM was acquiring all Delphi facilities in Kokomo and assumed the tax liability.

The order indicated that GM would pay $1,881,860 in real estate taxes owed in 2005 over a seven-year period, with an interest rate of 5 percent.

GM has until March 1, 2011, to pay the personal property taxes owed from 2005 in the amount of $4,615,399.

Those payments will allow local taxing units to repay loans secured from the Indiana Rainy Day Fund within the 10-year limit for repayment. The state allowed Howard County taxing units to borrow the amount of unpaid taxes when Delphi filed for bankruptcy.

Lake said a $2.2 million check was received from Chrysler Group LLC for real estate taxes owed.

County officials continue to discuss with Chrysler $12.3 million in personal property taxes owed for 2009 and $12.3 million owed in 2010, as well as an appeal filed by Chrysler over the assessed value of Indiana Transmission Plants I and II.

Those taxes were owed by Chrysler LLC, which filed for bankruptcy protection earlier this year. Chrysler Group LLC was formed after the car company exited bankruptcy in a partnership agreement with Italian automaker Fiat.

Howard County attorney Larry Murrell said Chrysler Group LLC said it would pay the fall taxes in the spring, under protest because of the pending appeal concerning the assessed value of the two newest transmission plants in Kokomo.

“We’re still negotiating with Chrysler,” Murrell said of the personal property taxes that are owed. “These are complex negotiations with a lot of parties involved.”

Progress is being made and hopefully an agreement will be reached in the near future, he said.

“Delphi has done everything they agreed to,” Murrell said.

• Ken de la Bastide is the Kokomo Tribune enterprise editor. He can be reached at 765-454-8580 or via e-mail at ken.delabastide@kokomotribune.com