Allen County commissioners joined other local taxing entities in giving Iola Pharmacy an exception to provide it with property tax abatement for its facility at 1408 East St.
Bill Walden, a partner in the pharmacy, told commissioners USD 257, Iola and Allen County Community College had agreed to give the business the tax abatement within the Neighborhood Revitalization Program.
The exception will not be retroactive to when the East Street facility opened in 2007, but will be good for the remaining seven years of the 10-year break. The next two years the pharmacy will receive total abatement with taxes phased in to 100 percent over the next five years. In the program participants pay taxes, which then are rebated minus 5 percent for county administration fees.
Walden explained in a letter that “it was assumed by all that Iola Pharmacy, Inc. was included in the tax exempt status for the building … This was accidentally overlooked by all, Iola Medical Developers, Iola Pharmacy, Inc., Community National Bank, City of Iola and Allen County treasurer.”
Walden further said the pharmacy would have sought inclusion in the program, if it hadn’t been for the oversight. He also noted that since construction all property taxes were current.
Commissioner Gary McIntosh moved to grant the exception, Rob Francis offered a second and it passed 2-1, with Dick Works voting “no.”
CARL SLAUGH, Iola administrator, told commissioners Iola was considering allowing those who failed to enroll promptly in the tax abatement program to get on board a year late and enjoy abatements for nine years.
That didn’t sit well with commissioners.
“The program is to encourage people to improve their properties” and even with some hoops to be negotiated, people need to sign on up front and meet requirements, Works said. He also said the program should be compatible throughout all levels of governance in the county, not varied one from another.
McIntosh agreed. He also said he didn’t think the county or any other governing body should be expected to “be making exceptions all the time.” The pharmacy’s was not the first.
Whether the program’s advantages are made fully clear when building permits first are sought has been a contention in some arguments for exceptions. Slaugh said Iola would make special efforts to ensure that whenever a building permit was issued, the applicant would be given full appraisal of the tax-abatement program.
