7/10/2007
Media Contact:
Steve Campbell, [317] 327-2650
Margie Smith-Simmons, [317] 327-3690 |
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Peterson thanks State for property tax payment plan, consideration of special session
Mayor also activates ‘taxpayer advocate’ to help
homeowners hit by increases
INDIANAPOLIS – Mayor Bart Peterson today thanked the governor and the State of Indiana for moving to help homeowners hit hard by dramatic property tax increases by allowing an installment payment plan.
After court-ordered reassessments caused dramatic increases in 2003, the mayor asked the state to create an installment plan and waive late payment penalties. The state agreed to do both administratively. The city on behalf of homeowners made a similar request of state officials yesterday.
Mayor Peterson will also activate the Office of Taxpayer Advocate, a position he created by executive order to help local homeowners understand their property taxes, including the tax appeal process.
He also said that he will work with the governor and state legislators of both parties to find solutions that help the taxpayers of Marion County and statewide.
“As property tax bills are starting to hit home, politicians are going to be tempted to point fingers,” Mayor Peterson said.
“The blame game is unproductive and a waste of time,” Peterson continued. “The people I’ve talked to in neighborhoods across Marion County just want solutions, and they need help now. “
“The governor’s plan will provide some immediate help and it’s an important first step,” he said. “But it won’t stop these dramatic increases from happening. We need to address the underlying causes – like the unfunded state mandate of the child welfare budget, unnecessary layers of government and disjointed property assessments – and only the state legislature and a special session can do that.”
Payment plan. State law currently requires that property taxes must be paid by the due date – July 27 this year and again in November – and if they are not paid in full, a 10% penalty is added to the unpaid balance. This change would allow homeowners to pay their property taxes in installments.
Marion County Treasurer Michael Rodman and Auditor Billie Breaux have indicated that they will work with the City-County Council immediately to activate a payment plan.
Office of Taxpayer Advocate. The Office of Taxpayer Advocate, a team of volunteer attorneys and others staffers will be available to provide free legal help to homeowners hit by property tax increases, including determining whether their homestead credit was included in their bill, assisting homeowners with the property tax appeal process and answering general questions that taxpayers have about their bills. More information on the Office of Taxpayer Advocate will be released tomorrow.
Special session. Peterson also reiterated his call for a special session of the state legislature to address three issues that could deliver tax relief for Marion County:
- Take over costs of State-run child welfare from 2005 forward. The State requires Marion County to raise property taxes to pay for child welfare services, even though the services are delivered and controlled by the State. This budget has increased dramatically in the past few years and now stands at more than $100 million. Savings to taxpayers = $41 million.
- Restore the full amount of the property tax replacement credit, which was capped two years ago, to local taxpayers. Savings = $25 million.
- Pass the remainder of Indianapolis Works. Passing the consolidation of the six remaining township fire departments, the nine township tax assessors and nine township trustees would improve service and save taxpayer dollars. Savings = $22 million.
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