The IndyStar reported this morning that two Carmel corporate tax abatements may be at risk of being revoked.
Both companies, Dormir (AKA Sleep LLC) and Pharmakon Long Term Care Pharmacy, Inc. were given personal property tax abatements by the City of Carmel in 2008 for moving their facilities to Carmel. The tax abatements were on the value of information technology (IT) equipment installed at the facilities for use in manufacturing and distribution activities.
When a company applies for a tax abatement in Indiana, it is required to file a Statement of Benefits stating the amount of the investment the company is requesting a tax abatement on, as well as the number of jobs and salaries that it estimates will be created by the investment. The company is then required to file annually, for the length of the abatement, a Form CF-1 Compliance with Statement of Benefits – Real Property (for tax abatements on improvements to real property), or a Form CF-1 Compliance with Statement of Benefits – Personal Property (for tax abatements on personal property, i.e., manufacturing and logistical equipment). This form requires the company to report the actual salaries and jobs created as a result of the investment. These forms are then reviewed annually by the body that granted the tax abatement (in this case, the Carmel City Council) for compliance with the terms of the tax abatement.
According to the draft resolutions in the Carmel City Council meeting packet for 2012-09-04, neither company submitted their CF-1 forms this year for review (the form was due on May 15). Also according to the resolutions, Dormir submitted a letter of explanation on August 8. This letter is referred to as Exhibit A in the draft resolution, but unfortunately has not been included in the meeting packet.
I have included the relevant portions of the meeting packet here: Tax Abatement Revocation Carmel 2012-09-04 Meeting.
Note: in the time I have been on the Monroe County Council, although we have occasionally had to chase down the information or follow up for more details, we have not had a company with a tax abatement decline to provide a CF-1 compliance form.