"The Official Portrait of Miss InDiana"

"The Official Portrait of Miss InDiana"
aka "Miss Victory"

Tuesday, October 16, 2007

High property tax coupled with out of control spending sends a city to its death.

Indy under Bart Peterson's two terms has the same problems.
Read about it in the South Bend Tribune story
The INDIANA TEA PARTY in South Bend announced soon.


Anonymous said...

Please help me out with this one.

In 2002 the State gave up the Inventory tax on business and knew that in 2007 they had to find another stream of revenue. Does anyone know how to find out who voted on this bill.

Here is some research info.


Honestly I don't think Bart Peterson is to blame for all of this.

Anonymous said...

If the Inventory Tax is Eliminated, Who Pays?

If businesses do not pay property taxes on their inventories, someone must pay. There are essentially three possibilities.

1. Local governments can reduce their spending. Businesses paid $452 million in inventory taxes in 2002, which was about eight percent of the property tax revenue local governments received. About half of this revenue went to school corporations, another 40% to counties, cities and towns, and the rest to townships, library districts and other special districts. If inventory taxes are eliminated, one option is for these governments to reduce their spending and provide fewer services.

2. All other property taxpayers can pay more. Inventories will be effectively removed from the property tax base for taxes in 2007. If no other changes are made, the existing property tax levy (the revenue collected) would be paid by the remaining taxpayers. Tax rates would increase. This would increase property taxes for homeowners by about 10%.

3. Other taxpayers can pick up tab. Counties have the option to adopt a higher homestead credit, to offset the shift of inventory taxes to homeowners. The credit would be funded by an increase in a local income tax. This means that income taxpayers would foot part of the bill for the elimination of inventory taxes.

Some proponents of inventory tax elimination claim that without the tax, Indiana will become a magnet for warehousing businesses. This added development, it is said, will so increase incomes that income and sales tax revenues will rise enough to fund the tab in option 3 above. Evidence shows, however, that while inventory tax elimination probably will enhance economic development, it would not generate enough added state revenue to fully fund elimination. The next section discusses this evidence.