Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Council waives late filing to restore tax benefit for Treadit Tire
Summary
The council adopted a resolution finding Treadit Tire and Wheel Company in substantial compliance and waiving a late filing to restore a phased personal‑property deduction tied to equipment installed in 2022; staff said the company exceeded its originally estimated investment and appealed the city's initial compliance finding.
The Elkhart Common Council unanimously adopted a resolution waiving noncompliance with the timely filing requirement for a Statement of Benefits (CF‑1) so Treadit Tire and Wheel Company Inc. can be found in substantial compliance and receive an intended property tax deduction layer tied to equipment installed in 2022.
Drew Wines, economic development staff, told the council that the company’s 2018 council‑approved personal‑property tax phase‑in estimated an investment of $4.4 million in manufacturing equipment. Wines said the company received extensions in 2021 and 2022 while equipment was held overseas and that installation in 2022 created a five‑year “layer” eligible for the deduction. Wines said staff initially concluded the five‑year phase‑in had expired, but after an appeal and further review this year the city concluded the 2022 equipment installation aligned with what council had approved and recommended a waiver of noncompliance.
Councilman Henke asked for timing details: “When was the equipment actually placed at the facility?” Wines replied, “In 2022,” and explained that the 2022 installation created the five‑year layer and established the final year companies could submit a CF‑1 to receive the deduction. Wines also said the company’s actual investment exceeded its original estimate — he cited figures saying the company had invested more than $5 million and possibly around $5.8 million, statements he characterized as staff calculations that would be double‑checked.
Action: Proposed Resolution 25‑R‑35 — a waiver of noncompliance and a finding of substantial compliance for Treadit Tire and Wheel Company Inc. — passed by roll call 9‑0. Motion: Mister Pine; second: Mister Fish. Wines told the council that the waiver will allow the company to receive the benefit it would have received in 2024 and explained CF‑1 submission timelines related to the layered deduction.
Discussion only: council members questioned dates of installation, the sequence of extensions, and whether staff were tracking layered deductions correctly; Wines said staff maintain a shared spreadsheet with the auditor’s office and can provide company‑specific layered deduction information to council on request.
