6/28/2007
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Margie Smith Simmons, 327.3690 |
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Peterson: State must act to lower property taxes in Marion County, statewide
Mayor asks governor for special session of State legislature to protect homeowners INDIANAPOLIS – Mayor Bart Peterson today called impending property tax increases “a local and statewide crisis” and asked the governor to call a special session of the state legislature to help provide property tax relief in Marion County and statewide.
If the State legislature took these steps, it would mean immediate and future tax cuts for Marion County property taxpayers and taxpayers throughout the state.
“When property tax bills hit, many are going to spend their time pointing fingers at who’s to blame,” Mayor Peterson said at the Indiana Statehouse today. “Our taxpayers need solutions, not finger pointing or partisanship.”
The Mayor called for the state to act immediately to:
- Take over costs of State-run child welfare from the city-county from 2005 forward. Even though local officials have no control over the child services budget, outside contracts, employee salaries and services provided, the State makes Marion County officials raise the money – mostly through property taxes – to pay for its expenses. This State budget has increased dramatically in the past few years and now stands at $100 million. Savings to Marion County taxpayers = $41 million.
- Restore the full amount of the property tax replacement credit, which was capped two years ago, to local taxpayers. Savings to Marion County taxpayers = $25 million.
- Pass the remainder of Indianapolis Works. Passing the merger of the six remaining township fire departments into the Indianapolis Fire Department, the nine township tax assessors and nine township trustees would improve fire service, provide more timely and uniform property assessment, and save taxpayer dollars. Savings to Marion County taxpayers = $22 million.
“City government has been frugal. We have among the lowest per capita spending of any city in Indiana, and we have done everything possible to hold the line on property taxes,” Peterson said. “We’ve done our part, and now it’s time for the state to do its part.”
“We cannot wait until next year,” he added. “If the state legislature comes back into session and addresses this issue, it would mean immediate property tax cuts for Marion County homeowners.”
The city has been extremely aggressive and fiscally frugal to avoid using property tax increases to fund city government, Peterson said. Some, but not all, steps taken have included:
- Shrinking the city share of the Marion County property tax bill from 2000 to 2007.
- Ordering $83 million in budget cuts (2003-06) & freezing salaries for bi-weekly city employees (2004-06).
- Merging the Indianapolis Police Department and the Marion County Sheriff’s Department, and the consolidating the Washington Township Fire Department into the Indianapolis Fire Department, which have saved dollars and avoided even larger property tax hikes.
Why property taxes are rising. Property taxes are expected to rise this year across the state, especially in Marion County for several reasons:
- The state capped the “property tax replacement credit,” which provided annual relief to property taxpayers, two years ago and have caused taxes to rise.
- The inventory tax was abolished several years ago, meaning there is a major tax shift from businesses to homeowners this year without any state support to replace it.
- Marion County has been forced to raise local property taxes to pay for State-mandated costs for child welfare costs. The State child welfare taxes are increasing by 75% this year.
- The state legislature failed to pass the remaining parts of Indianapolis Works, meaning several township trustees are raising their fire taxes by double digits, including Decatur Township (49% increase), Wayne (40% increase) and Franklin (32% increase) and Pike (10% increase).
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