FOR IMMEDIATE RELEASE
Repeal Property Taxes? Can Local Govt’s Afford it?
Kenley Announces 4th Property Tax Hearing for Aug. 27
(STATEHOUSE) – Indiana’s Commission on State Tax and Financing Policy will examine the feasibility of eliminating property taxes at its fourth meeting of the summer, scheduled for 1 p.m. Monday, Aug. 27, in Room 404 of the Statehouse.
Sen. Luke Kenley (R-Noblesville), who chairs the commission, said the next meeting will include presentations on:
- proposals to reduce or repeal property taxes
- how much replacement revenue would be needed
- experiences of other states efforts to significantly reduce property taxes
The commission held its third meeting on Monday and heard several hours of testimony on the benefits and downfalls of property tax abatements and taxing increment financing districts (TIFs), tools used by local governments to attract and promote economic development in their communities. Both initiatives divert the assessed value of property away from financing local services including schools, but are seen as valuable tools needed to attract businesses and create jobs for Hoosiers. Educators voiced interest in having a more active role before local government grant such tax benefits. Currently, statewide numbers show that about 4.2 percent of the state’s gross assessed value is abated or in TIF districts.
The commission also heard testimony from local elected officials and school administrators on the petition and remonstrance process used for all government and school building projects over $2 million that are paid by property tax dollars. Currently, Indiana law allows all registered voters to participate in petition and remonstrance, but does not allow direct public referendums. The commission heard from some individuals who would prefer public referendums, regardless of dollar amount, but school officials urged legislators to reject this proposal.
The commission’s meetings are designed to hear testimony and seek ideas on reforming Indiana’s property tax system. The commission is working towards a bi-partisan plan that can be considered by the legislature for the 2008 session.
Kenley represents Hamilton, Grant, Madison and Tipton counties.
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