Need Fire Equipment? Here is a Way to Find the Money!

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June 18, 2020
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September 5, 2020

Your township may be allowed to raise extra tax money to pay for firefighting apparatus and equipment.  That includes fire buildings.

Even though township property taxes are limited by state law, the limit does not always apply to money raised for debt payments.

Debt can be used to buy firefighting apparatus and equipment, and an additional tax can be levied to make the payments.

Issuing bonds is expensive, but there is a cheaper way to finance firefighting apparatus and equipment. A special rule allows a township to obtain a relatively simple, cheap, loan or lease through a bank.  The term must be six years or less. 

There are still a few legal hoops to jump through, including board approval, and the township attorney must be consulted.

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If you have questions or would like further information, please contact us at coonrod@coonrodcpa.com to learn more.

This article is intended to provide information of general interest to local government officials in Indiana. The information is not guaranteed to be applicable or appropriate in particular circumstances. Local officials should consult competent professionals before acting on any information contained in this article. We are not attorneys. The advice of a legal nature should be sought only from qualified attorneys.

We inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for (I) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

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