FOR IMMEDIATE RELEASE
Lubbers, Miller Get Their Investigation
Of Indianapolis Property Tax Crisis
Bipartisan commission to begin inquiry July 23 into causes,
short- and long-term solutions to skyrocketing bills
(Statehouse) – Two area lawmakers’ call last week for a bipartisan commission to investigate causes and solutions to the “property tax crisis” facing Marion County homeowners has received immediate attention of statehouse leaders. Reacting to the urgency expressed by Sens. Teresa Lubbers and Pat Miller (Rs-Indianapolis), the Commission on State Tax and Financing Policy today announced a hearing to be hosted yet this month.
The commission’s first meeting on property taxes will be at 9 a.m. Monday, July 23, in the auditorium of the Indiana Government Center South, located at 302 W. Washington St., Indianapolis. Legislative leaders said the hearing will be broadcast via the Internet at http://www.in.gov/legislative/session/video.html, so more taxpayers can view the proceedings.
Lubbers and Miller said they have heard from hundreds of constituents about “alarming, skyrocketing property tax bills.”
Indianapolis property tax bills are reportedly 34 percent higher on average this year, with some neighborhoods seeing property tax burdens double.
The hearings will focus exclusively on “causes of property tax increases as well as short- and long-term solutions.” Anyone is welcome to testify. After signing in, everyone interested will be given an opportunity to speak.
The commission is comprised of Republican and Democrat lawmakers from both the Indiana Senate and House of Representatives. The commission meets when the legislature is not in session.
Lubbers and Miller are hopeful the hearings will provide more public understanding of local governments’ needs and options and to create bipartisan support among local officials for shifting costs of local government away from property taxes.
Currently, state government receives 0.1 percent of property taxes collected. Local governments benefit from the remaining 99.9 percent. Consequently, in addition to providing homeowners record levels of property tax relief, this year’s legislature gave additional options to local leaders.
Indiana’s new state budget includes a record $2.65 billion in property tax relief. House Enrolled Act 1001 includes $2.1 billion in traditional property tax replacement funds to offset costs associated with local government. In addition, lawmakers reacted to reports of rising residential property taxes by including another $300 million for property tax relief this year and still another $250 million to help offset property taxes payable in 2008 – $2.65 billion of relief in all. This estimate doesn’t include property tax savings that may be realized if counties adopt new Local Option Income Taxes (LOITs).
A companion bill, HEA 1478, gives local officials tools to shift from property taxes to Local Option Income Taxes, which may be used to fund government operations and further replace local governments’ dependence on property taxes. Neither of these may exceed 1 percent of taxpayers’ income. If used to fund operations and reduce dependence on property taxes, another LOIT of 0.25 percent in other counties and 0.5 percent in Marion County, may be used for public safety. In Marion County, the Marion County Income Tax Council has the authority and responsibility to shift to LOITs.
In addition, the new property tax legislation also creates County Boards of Tax and Capital Projects to review all local government and school construction projects. Local boards include city and county governments, schools, the county auditor and two citizens elected by voters. Their purpose is to keep important cost-containment decisions on the local level and to help prevent too many costly government construction projects from overburdening property taxpayers.
In the meantime, the two Indianapolis lawmakers encouraged homeowners whose assessments appear incorrect to speak immediately to their township assessor. Sometimes inaccuracies (square footage, number of rooms, basement, pool, etc.) can be addressed without filing a formal appeal.
Should a homeowner determine a formal appeal is necessary, the taxpayer should file a Form 133, which is available from each assessor’s office, or send a detailed letter explaining the reasons for the appeal to their township and county assessors. The appeal will be reviewed by the Property Tax Assessment Board of Appeals who will send a notice of their decision. If that decision is unsatisfactory, an appeal can be made within the next 30 days to the Indiana Board of Tax Review. If the Review Board decision is also unsatisfactory, an appeal may be filed within another 45 days to the Indiana Tax Court. Copies of this request should also be sent to the county assessor and the Indiana Attorney General’s Office. However, taxpayers are expected to pay or attempt to pay during the appeals process.
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