On July 6th, Senator Lubbers and I called for an investigation of the property tax crisis in Indianapolis/Marion County. We asked for this Commission on State Tax and Fiscal Policy to focus hearings exclusively on the causes of property tax increases as well as short- and long-term solutions to the alarming skyrocketing property tax bills.
Senator Kenley; thank you for promptly scheduling this Commission to focus on the property tax crisis.
Thank you to Governor Daniels for providing leadership in providing a temporary solution.
Thank you to the citizens of Indianapolis for their outrage and demand for action.
I agree with Senator Lubbers and will try not to duplicate her testimony.
I have other constituents here to testify but, before I proceed, I want to introduce one constituent from the district I represent, Mr. Greg Meyer, to tell his story.
This is one face behind the numbers, one victim of a system that can no longer be held together by credits and band-aids.
The property tax system is broken. The assessment system is broken.
It doesn’t work for people with disabilities. It doesn’t work for senior citizens. It doesn’t work for young families.
It doesn’t work for landlords and tenants. It doesn’t work - period.
There is a lack of consistency in assessing from house to house, township to township, and county to county.
There is no incentive to improve homes and communities.
The property tax problem is an issue that can’t wait. There are too many taxing units. The system is too complicated. It must be fixed now.
What Governor Daniels has done addresses the immediate crisis, but if the new reassessment brings a similar outcome to this one; Hoosier property owners will still face outrageous bills.
I urge this Commission to be bold, creative, and sensitive - to fix property taxes now.
There are two sides to the coin: how revenue is raised and how it is spent. You must look at both sides. Please examine local government spending and the number of taxing units.
I am calling for a partial or complete elimination of property taxes. Many are calling for the total elimination of property taxes only. The earliest this could happen, if the constitutional amendment were on the ballot in 2010, is 2011. We cannot wait until 2011 to deal with the property tax crisis that faces us now. Even if it is repealed in 2011. What started as a court order to make the system fair for all has become a series of confusing numbers and methods.
In addition to short-term relief to cope with our current property tax bills there must be a long-term solution.
My suggestion for immediate relief
I urge you to look to other states, particularly those that have a flat 1% property tax based on purchase price or other methods that do not require property to be assessed.
If there is a special session, the rebate check plan must be withdrawn and credits used instead.
Analyze the effectiveness, responsibilities and role of the Department of Local Government Finance.
The state should give local government relief for welfare costs and the school general fund.
Remove the one-tenth of 1% that goes to the state from property taxes.
Residential bills must be forcefully capped.
In 2004, I introduced Senate Bill 264 to study the elimination of 50%, 75% or 100% of property taxes. While SB 264 did not pass; the concept passed in another bill. The study was done without results. I have a copy of SB 264 and the Committee Report from 2004, Senator Kenley, which you can distribute.
Never has there been a more pressing need for us to act to curb the long-term growth of property taxes.
We have an opportunity to fix the property tax system once and for all.
Never has there been a more pressing need for us to act to curb the long-term growth of property taxes; be it through the total elimination of property taxes or by capping increases in property taxes and turning to other options - income, or sales taxes or user fees that would replace the revenue from property taxes.
It is unconscionable to raise any tax until we have property tax relief.
I have always tried to represent my district well. I pledge to my constituents, to the citizens of Indiana, and to this Commission to do everything I can to help solve the property tax crisis.
|
