Kendallville City Council OKs tax abatement for new machinery, equipment
1/20/2016 10:20:00 AM
Kendalville City Council OKs tax abatement for new machinery, equipment
Dennis Nartker, News-Sun
KENDALLVILLE — Flint & Walling Inc. will save nearly $96,000 in taxes over 10 years after the Kendallville City Council Tuesday night approved a resolution granting the company a sliding-scale tax abatement.
Council members voted unanimously to grant a 10-year abatement on new machinery and equipment valued at $1.6 million. No new jobs will be created from the investment at this time.
The abatement was recommended by the Economic Development Advisory Committee after committee members reviewed the application. The abatement first came before council on Jan. 5, but company officials requested a postponement.
Flint & Walling, 95 N. Oak St., is located in a designated economic revitalization area and is eligible for tax abatement.
The new machinery and equipment is expected to add production capacity and improve efficiency in the company’s manufacturing facility. The additional machinery and equipment, including a computer numerical controlled machining center, should be installed and operating by June 2017, according to the company’s abatement application.
Flint & Walling has 161 employees and an annual payroll of more than $7.4 million. The company has manufactured water pumps, sump pumps, sewage pumps and water conditioning equipment at the same location for 150 years.
A sliding-scale abatement means 100 percent of taxes will be abated the first year, 90 percent the second year, 80 percent the third year and so on until year the abatement ends. The company is expected to save $95,820 in taxes over the 10 years.
The tax abatement goes to the Indiana Department of Local Government Finance for final approval.
