La Porte board rescinds Microsoft tax abatement; company to pay full property taxes

A presenter asked the City of La Porte Board of Public Works and Safety on March 3 to rescind a taxpayer agreement with Microsoft tied to the company’s planned La Porte project; the board approved the resolution, and city officials said they expect Microsoft to pay full property taxes on the project.

The presenter read a resolution “approving the rescission of a taxpayer agreement, including the termination of a tax abatement authorized therein,” and asked the board to support rescinding the agreement so Microsoft “will pay all of their property taxes, both real and personal property taxes, on their project in the city of La Porte,” the presenter said.

Why it matters: City officials said the rescission aligns the existing agreement with a recent pledge from Microsoft leadership not to seek local tax breaks on new projects. The presenter told the board that, if the redevelopment commission and the La Porte Community School Corporation approve companion documents later in the day, the city planned a press conference to announce a new partnership tied to the Microsoft project.

Board reaction and assurances: Board members praised Microsoft’s responsiveness and described the company as a partner for local economic development and schools. The board’s Chair said residents should be reassured that the company plans to manage water needs and utility infrastructure independently, saying, “Microsoft's going to truck in their water. When decommissioned, we'll truck their water out and dispose of it following EPA guidelines, not in the city of La Porte.”

Officials also discussed utility impacts and said they were working with the Indiana Utility Regulatory Commission and regional utility stakeholders to avoid cost shifts to local customers. One board member said protecting ratepayers from increased transmission or generation costs was a key concern as the city evaluates large new electrical demand.

What the vote did: After discussion the board moved and approved the resolution to rescind the taxpayer agreement. The presenter said representatives from Microsoft and school leaders were present for the meeting and that the redevelopment commission and school board planned to act on related agreements later that day.

Next steps: The presenter said the redevelopment commission would consider a related rescission and a secondary agreement with the La Porte Community School Corporation; if those bodies approve the documents, the city planned a joint announcement to publicize the partnership.

Quotes: “We’re asking you to rescind the taxpayer agreement between the City of La Porte and Microsoft, which would ultimately mean that Microsoft will pay all of their property taxes, both real and personal property taxes, on their project in the city of La Porte,” the presenter said. The board Chair added, “We want a true partner that our residents deserve, and Microsoft has met that bill.”

What’s not in the record: The board discussion referenced company assurances on water handling and utility payments; the transcript records these assurances but does not include a direct, on-the-record statement from a Microsoft representative during this meeting. The precise language of the rescission resolution and any follow-on school-redevelopment agreement were presented for consideration but are not reproduced here.