Indiana House Ways and Means Committee Appears in Fort Wayne, Indiana

Indiana House legislators appeared in Fort Wayne during the legislators’ short session. The traveling road show of members of the Ways and Means Committee provided an opportunity for taxpayers to sound off about Governor Mitch Daniels’ property tax reform bill. Special interest groups and lobbyists turned out in force to argue their points about House Bill 1001

The legislators gathered here for support to amend House Bill 1001. The bill comes in responses to the outrageous over the unfair and sometime false assessment of property resulting in outrageous increases in homeowners’ property taxes. The bill reduces the number of assessing officials, increasing the circuit breaker credit, standard deduction for homestead credit, additional State Homestead credits for 2008 and eliminates the State Property tax Replacement Credits after 2009, the transfer of funding obligations to state and increase in Sales Tax; such as school tuition support levies, including levies imposed to fund charter schools, school transportation fund levies, county medical assistance towards fund levies, family and children’s fund levies, children’s psychiatric residential treatment services fund levies, the state forestry fund levy, the state fair fund levy, the part of the state forestry levy used by the Department of Local Government Finance to ay for management of the Department’s property tax data base on January 1, 2009 and increase the sales tax to 7% tp pay for these expenses, New limitation on Growth in Property Tax Levies with a County Board of Tax and Capital Projects Review Board, the use of referena requirement on bond issues and lease agreement and the use of local income taxes.

A lobbyist for Mayors, apartment owners, Mayors from various cities, elected officials such township trustees, school superintendent, transportation leader, and school board members were the first to address the body of 25 members. These prominent leaders almost shut out the single voice of over taxed property owners. One or two single property owners were allowed to speak within the first four hour, only after a woman rose from the audience and interrupted the filibustering process against some of the provisions in House Bill 1001.

The audience broke out in a roaring laughter when Allen Commissioner Nelson Peters attempted to sell the legislators on how property owners were spared the tax burden of over 24 percent with Allen County’s homeowners average 7%.

Tom Henry Fort Wayne newly elected Mayor appeared out of touch as he touted the fact that he believed that the 2nd largest city in Fort Wayne was fiscal conservative. It was obvious the city was trying to present themselves as a city that supported it’s citizen. It was a little over the top, especially when saluting the auditor Lizabeth Blosser, receiving auditor of the year, without mentioning the fact that this award comes from a small group of her peers.

Another laughable moment was the many officials attempted to spin their effects for exemption because of their concern for the poor:

The only concern school districts have is if the state would take over 100 percent of the general fund; … there are safety nets in place so that in economic downturns there’s a rainy day fund so school districts receive all of the funding schools are supposed to receive,” Friend said.

Nevertheless, one woman would speak truth to the

polished mess

as she stood up and stated her property rose over 200%, and many in the Aboite areas experienced increases averaging over 57%. With so little oversight, the treasurer was able to collect millions of dollars from folks who did not understand the appeal process. As District 84. Rep. Randy Borror pointed out in a letter mailed September 2007, “99% of the local budget comes from property taxes.” Mistakes in over assessment provides windfalls for auditors, that would not be available if the move to income tax and sales tax.

A survey by Indiana University Education and Evaluation Policy reports that the governor’s suggestion to move to income and sales taxes to support local budget is a move in the right direction. The survey suggest that only 15% support using property taxes, 35 % support using state income taxes and 29% support using sales taxes while 21% support using a combination of all three.

Hearing in South Bend here.