INDIANA: Bethlehem Fallout

Two state lawmakers representing parts of Porter County have introduced legislation in the General Assembly to make up for property tax revenue lost since Bethlehem Steel has filed for protection from creditors in federal bankruptcy court.

The company, which has a mill in Burns Harbor, told the court in its filing that it would not pay about $31 million in property taxes owed to Porter County, where the plant is located.

Lawmakers from the area want to pass what would amount to emergency legislation to limit the localized fiscal damage from the company's decision not to pay October and November taxes. One bill would allow the county to borrow $10 million to make up the difference from the payment, which was due yesterday.

Another bill would free up about $31 million in reserves to cover several upcoming Bethlehem Steel tax payments. The legislature has adjourned until January. It would have to consider the legislation at a one-day organization meeting Nov. 20.

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