CROWN POINT | Lake County officials are asking the state to give flood damaged homeowners and small businesses a break on this and next year's property taxes.

Lake County Treasurer John Petalas said he and Auditor Peggy Katona asked Cheryl Musgrave, commissioner for the Indiana Department of Local Government Finance, to cancel late fees for homeowners and small businesses unable to pay this year's property tax bills, which are beginning to arrive in local homes.

And county Assessor Paul Karras is asking the state for permission to lower the assessment of flood damaged properties in time to lower taxes for 2009 tax bills.

Hundreds of people in Munster, Hammond, Schererville, Merrillville, Hobart, Lake Station, Gary and other communities were forced to flee their homes in the aftermath of heavy rains two weeks ago.

Petalas and Katona wrote to Musgrave, "Many of these people now need every single dime they can get their hands on.

"For those that have the ability to pay, but received delayed mail because of the floods, we would like to have the state give us permission to waive all penalties against them."

They say in their letter they would like to offer payment plans without future penalties for those unable to pay.

Petalas said the proposal would apply to all property owners except large industries.

Sherry Stone, director of real estate matters in the county assessor's office, is seeking permission for a reassessment of flood damaged property. A reassessment likely would lower flood victims' property values and taxes due in 2009.

State officials now are gathering damage estimates in Lake, Porter and LaPorte counties and expect the total figure to be many million of dollars.