Indiana taxpayers protesting a county’s lease agreement for its use of jail facilities do not have to post a $92 million bond, the state’s tax court ruled while affirming its jurisdiction over the Indiana Jail Funding Case.
Court Affirms Jurisdiction
In an order issued Friday, the Indiana Tax Court declared it had jurisdiction over a petition filed by Alice Luebke and three others. The petition challenges Allen County’s lease of the county courthouse and a new county jail from a corporation established to facilitate the jail’s financing. The court also denied the county’s attempt to require the taxpayers to post a bond of nearly $92 million to proceed with the challenge.
Indiana Jail Funding Case:The Legal Dispute
The parties involved sought to confirm the court’s jurisdiction due to a lack of clarity in state law regarding the appropriate forum for the appeal. The Indiana Jail Funding Case centers on the imposition and collection of taxes to fund the lease payments. The court’s decision emphasizes the substantial questions raised by the taxpayers about the financing method, exempting them from the state law requirement to post a bond.
Indiana Jail Funding Case: Substantial Question to Be Tried
The court found that the taxpayers presented sufficient evidence to demonstrate a significant issue that warrants a trial. This evidence allowed them to bypass the bond requirement typically mandated by state law in such cases.
Role of the State Department of Local Government Finance
The petition also names the state Department of Local Government Finance, which previously rejected the taxpayers’ objection to the county’s financing method for the facilities. This decision underscores the ongoing debate over the legality and appropriateness of the funding approach used in the Indiana Jail Funding Case.
