The county is still in negotiations with Chrysler to receive the bulk of the property taxes they are owed this year, but the company has agreed to pay 25 percent of what they owe.

This could mean loses of $12.3 million according to Howard County assessor Jamie Shepherd. Currently Chrysler will only pay the $4.4 million of their property taxes that is classified as real property; the building and the land it is on. The $12.3 million they are not currently paying is for personal property; the equipment Chrysler uses in their buildings.

Shepherd said that negotiations are still ongoing in regards to the personal property, and currently senators Evan Bayh and Richard Lugar, as well as congressmen Dan Burton and Joe Donnelly are aware of the situation and working on a solution to the problem.

Traditionally the county could file a personal judgment lien against an entity that didn't pay its personal property taxes. According to county attorney Larry Murrell as long as Chrysler is in bakruptcy the county cannot pursue that option without permission from the bankruptcy court. Murrell also added that they couldn't file that lien until one year after the taxes were delinquent.

Murrell hopes the problem will be isolate to this year.

"As Howard County and our attorneys read the sell order, new Chrysler will pick up the new property taxes this year that are due in 2010," said Murrell. "We hope Chrysler and their attorneys take the same position."

Currently state representative Ron Herrell has introduced an amendment to the state budget bill that would allow local municipalities to borrow from the state rainy day fund to cover property taxes owed by auto manufacturers.

"A $16 million loss would literally bankrupt our local government, leaving Kokomo in ruins," Herrell said. "This loan program is a layer of protection for Kokomo residents, ensuring that basic services are funded in theevent that the troubles of our automakers leave the city in a desperate lurch."

Below is a breakdown of how much each unit of government stands to lose (the highlighted portions are the parcels Chrysler will not be paying property on):