Because Porter County was behind in its property tax distributions this year, the county doled out nearly $127,000 to taxing units from interest the county earned on the money.

The distribution was prompted by a state law that requires counties to pay out interest on undistributed tax money if the county treasurer or auditor fail to make the normal tax distribuion by the 51st day after each property tax due date.

The law was brought to the attention of county officials two weeks ago by Burns Harbor Clerk Treasurer Jane Jordan, who noted that the county had to distribute interest earnings once before when tax distributions were late. And on Wednesday, the county audtior’s office cut the checks.

The county’s payable-2008 tax bills were due on April 13 of this year, but the county didn’t make final tax distribution to the local taxing units until a few weeks ago. The checks made available to taxing units represented the interest accumulated since around late May.

The availabilty of the checks was announced by County Council President Robert Poparad, D-1st, during a special meeting with school representatives to discuss possible help from the county for taxing units due to the late 2009 tax bills. Most of the school officials in attendance then picked up their checks after the meeting from the auditor’s office.

The biggest check issued went to the Duneland Schools. Its portion of the county’s 2008 tax settlement was just over $4.6 million, resulting in a check for $23,310 in interest earned by the county.

Most of the other checks were for much smaller amounts. Chesterton, for example, got $2,483; Porter, $1,380; Burns Harbor, $1,118; and Dune Acres, $111. Westchester Public Library received $683, while while the Duneland townships each got $100 or less.

The conservancy districts and charter schools also received a portion of the interest earnings. The three taxing units that are in Pine Township in the Michigan City School Corporation did not receive the interest checks, since their final 2008 tax bills went out much later and the county made the final tax distribution to those units within the 51-day period.

The distribution of the interest checks Wednesday is a separate matter from the ongoing discussion over whether the county will tap hospital interest earnings in order to help offset revenue losses for the local taxing units due to the late 2009 tax bills (see related story).

　Posted 10/22/2009