If the Democratic-controlled Indianapolis City-County Council Monday night passes an ordinance that takes $15 million from the Capital Improvement Board to shore up the city coffers it could lead to legal battle between the two government entities.
A council Committee Thursday night passed an ordinance that would take $15 million from the CIB’s cash reserves in the form of a PILOT (payment in lieu of taxes) and put it towards the city’s operating expenses.
PILOTS are used to capture revenue from properties that don’t pay property taxes like utilities.
Democrats argued the money was needed to shore up public safety. CIB officials say the Council has the legal authority to pass a PILOT on the CIB, however, they argue that state law was not properly followed. They say the CIB properties were not assessed according to state law and that the assessment would have had to have been done before the PILOT could be levied.
Leon-Tailored Audio: CIB Attorney Toby McClamroch - (3 minutes)
However, Democrats say they have a preliminary assessment of what the properties are worth and not every rule regarding property taxes must be followed, thus setting up the possible future legal challenge.