Posted by
Rich from NW Indiana on Wednesday, January 07, 2009 5:19:52 PM
After many years the state of Indiana have finally achieved property tax reform. It was not a fun process for many here in Lake County. The lawsuit that started it all was filed here in Lake County by a homeowner in St. John. I am not going to say his name because he has been demonized by the many uninformed people for starting it all.
He did all of the taxpayers in Indiana a big favor though. Many don't believe it yet, but he really did. Starting in 2010 all property tax rates are capped at 1% of property value (2 or 3% in some areas, business and income-producing etc). Most property owners will be seeing big reductions in their property taxes.
The idea is to prevent towns and cities from increasing spending too quickly (or to dial back overspending already happening). It has been noted by virtually no one that this is a really overdue tax reform. It gives back to the taxpayer for once.
Because the media is fixated on the spending that must be cut.
Almost every community has to cut spending somewhere. The income from the property tax is going to be lower everywhere. Most towns officials are complaining, but are cutting their budgets knowing that they will get no support for spending increases.
Gary has to cut $30 million in spending to get under the cap. Mayor Clay has claimed to have cut $30 million already (it would have been $60 million over). Well Mayor you will have to do the whole job, not just half.
However there is a loophole that he is trying to drive thru. "Distressed" communities can get the state to allow higher caps for them. They are asking for "relief " from this budget mess.
I say the taxpayers are the ones that need relief, not the government of Gary Indiana.
Tax caps are pointless if elected officials can weasel out of them.
I hope that tax caps become more popular. It should be VERY hard to increase any taxes and something like this goes in the correct direction. Taxpayers are tapped out and elected politicians are not getting the message.
It shouldn't be that taxes are always rising. It kills peoples dreams and makes it harder to make a living.
I hope the state tells Gary to cut spending instead of increasing taxes. It would be better in the long run to have Gary spending far less money.
Recent articles about Gary tax cap.
Gary to make tax cap pitch The Times Jan.5, 2009
Gary makes tax plea Post Tribune Jan.5, 2009
Gary wants businesses to foot city bailout The Times Jan.6, 2009
Business cool to bailout for Gary Post Tribune Jan. 7, 2009
Gary buys new SUV for mayor The Times Jan. 7, 2009
As you can see, Gary officials have a lot of things that could be cut (easy). They don't seem able to see what is fat. Thats why we need caps.
Daniels blasts Gary Tax Cap Plan The Times Jan. 11, 2009
Gary mayor makes financial plea The Times Jan. 15, 2009