Union County Council approved a property tax abatement for NSK at its April 21 meeting.

NSK's Liberty plant manager Brian Grissom explained plans are underway for a $25 million expansion project over the next five years in order to meet growing customer demand. Council vice-president Richard Blank asked if the new equipment would open up any new employment positions in the facility. Grissom replied NSK continues to seek new employees and while the focus of the expansion is to automate more processes and increase capacity, a few new positions are expected to be created. 

Council member Jim Hensley voiced his appreciation for what NSK has done to the community and its employees. Council member Bonnie Adams asked how much NSK currently pays in property taxes. Grissom replied the company paid $437,000 in property taxes in 2021 and just paid $216,000 for the current spring installment.

Council member Chris Rosenberger made a motion to approve the NSK tax abatement, which was seconded by Hensley. Council president Trisha Persinger called a vote, which passed with the exception of Adams, who voted against, and council member Nancy Witter, who was absent.

Also discussed:
-Union County Sheriff Dale Dishmond presented a quote from The Office Shop out of Batesville for a new copier. The previous copier lasted 11 years, but is no longer serviceable due to a lack of parts availability. The Office Shop quoted $5890 for a new Kyocera copier. Dishmond sought proposals from Ricoh and Toshiba; Ricoh did not return a quote, Toshiba quoted $7330.

Dishmond vouched for the service provided by The Office Shop, who has serviced their previous unit and supplied the sheriff's office with a loaner copier until a new copier can be installed. Union County auditor Cheryl Begley also reported satisfaction with The Office Shop's service department. Council voted to approve the purchase.

-Union County Development Corporation executive director Melissa Browning reported Live in Liberty is scheduled the first Wednesday of the month from May through September at the Union County Foundation property on Union Street. UCDC is working with Indianapolis Motor Speedway to paint a mural of legendary announcer Bob Jenkins. Artist Pamela Bliss, who has painted murals of legendary Hoosiers John Mellencamp, Kurt Vonnegut and Reggie Miller, has signed on to work on the project. As of this writing, more than half of the $32,000 goal has been raised. To contribute, visit https://gofund.me/7f812430

-Union County special project coordinator Olivia Chewning reported West College Corner is moving forward with their plans to renovate the playground. A fundraising kickoff will take place on May 20.

What is Tax abatement?

Union County Council voted to approve a tax abatement for $25 million in planned facility upgrades for bearing manufacturer NSK at its April 21 meeting. This raised the question, “what exactly is a tax abatement?”

A tax abatement is a tool used by local government to encourage economic development by temporarily subsidizing property tax obligations. When a business invests money in real estate, buildings or equipment, they will in turn be required to pay property taxes on those investments. A tax abatement eases that tax burden by ramping up tax payments on the new property gradually over a number of years. A tax abatement does not reduce the taxes paid by an entity, it only softens the increase in taxes paid.

In the case of NSK, plant manager Brian Grissom reported to Union County Council the company paid $437,000 in property taxes in 2021 and will pay a similar figure in the current year. The company plans to invest $25 million over the next five years, for which it was granted a ten-year abatement. Over the next ten years, NSK's property tax obligation will gradually increase from the baseline.