Nearly every Indiana county has failed to send property tax bills on time this year, forcing many local governments and schools to borrow millions and providing further proof that Indiana’s tax billing system is still a work in progress more than a decade after a court ordered a massive overhaul. Only two of the state’s 92 counties sent tax bills on time, and 17 were more than six months late sending out the first of this year’s two tax bills, according to an Associated Press review of data from the Department of Local Government Finance, which regulates the property tax system. Some counties still haven’t billed.
The delays in 2008 and this year have caused cash-flow problems for school districts and other local government agencies. “It’s been an ulcer and it’s definitely not just for us,” said Sharon Qualkenbush, finance director for the Porter Township Schools, which borrowed $10.8 million last year and about $6 million this year because of the late tax bills. Much of the money has come from the Indiana Bond Bank, a state agency that issues short-term and long-term loans to schools and local governments. Executive director Dan Huge said the bond bank typically issues $250 million to $350 million in loans a year. But borrowing in 2008 spiked to more than $1 billion, and so far this year local units have borrowed almost $600 million. The increase in borrowing is due almost entirely to late property tax bills, he said. Borrowers must repay the loans with interest. The Porter Township school system has paid some interest on this year’s loan but will owe an additional $34,644 by Dec. 31, Qualkenbush said
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