ELKHART — The Elkhart City Council this week determined three companies weren't compliant with terms of their tax breaks.
They tabled action on the paperwork filed by three more firms that also have tax breaks up for annual review and deemed 15 other companies compliant with the 18 tax breaks they have between them.
"It's the first time I feel we actually did it correctly," Elkhart City Councilman Dave Henke said. In years past when the City Council conducted the annual review of companies getting breaks on their property taxes, he said, council members "had a hard time rejecting anybody."
The three firms deemed noncompliant — or, more specifically, "not in substantial compliance" — could lose their tax breaks.
But this week's action isn't necessarily the final word. Representatives from Genesis Products Inc., Kiel NA and Dometic Corp., can make the case for why they are compliant during hearings scheduled for July 18 at City Hall.
"At that time, they very well may be approved," Councilman Brian Dickerson said.
Representatives from all three firms didn't return calls this week seeking comment for this story.
Each year, the council reviews companies getting abatements, which are reductions in the property taxes they must pay, to determine if they're living up to terms of the deals with the city. The city grants tax breaks to companies to encourage investment and job creation, but companies are required to maintain 95 percent compliance with pre-determined investment and hiring targets or risk losing the abatements.