Auto parts maker Gecom to invest $200,000 add eight jobs in Greensburg

Greensburg City Council granted tax abatement on the investment Monday evening. Gecom said in its tax abatement application that the eight new positions will pay an average of $30,600.

Tax abatements phase in property taxes of new investments over a several years. For example, in a three-year abatement, a company may pay no property taxes on the new investments in the first year, 1/3 in the second year and 2/3 in the third year before paying the full amount in the fourth year.

Mayor Gary Herbert said Monday that he and a committee had reviewed the request and agreed that a three-year abatement would be appropriate. Council members agreed and approved the request.

Councilman Glenn Tebbe also asked City Attorney Chris Stephen to investigate whether the city, for future abatement agreements, can prorate the abatement depending on a company’s compliance with its stated investment and job creation goals.

He said that the council should have a means of reducing the tax break that a company gets in subsequent years if it fails to meet its agreed upon goals.

Herbert said he agreed. He had made a similar proposal last week at the Decatur County Republican Party’s Lincoln Day Dinner. Herbert had said that he had spoken with State Rep. Randy Frye, R-Greensburg, to adopt legislation that would allow cities to change abatement agreements much like the Indiana Economic Development Corporation can.

Herbert said he believes that cities currently can annually review whether companies are in compliance with the original tax abatement agreement, and they can choose to continue the abatement or stop it -- but they cannot alter the agreement based on a company’s compliance with its original goals.