Senator Delph Asks Governor to Reconsider Elimination of Property Tax

(STATEHOUSE) — Sen. Mike Delph (R-Carmel) hand delivered a letter to Governor Mitch Daniels today requesting him to reconsider his stance on the elimination of property taxes and asking for bold leadership in shifting Indiana to a “fair tax” system.

“The ideal tax system is one with a broad base and a low rate so that all pay their fair share and no one feels like they are being gouged by government, relative to his or her neighbor,” said Delph. “In short, government shouldn’t pick winners and losers to fund it, but rather, should promote a fairer public finance system with a broad base and low rate.”

Delph’s letter requested the governor direct his budget director and other state fiscal experts to examine data on a complete shift to a broader based sales tax, which gives taxpayers, more discretion and choice. Current law exempts necessities like food, prescriptions and medical equipment from Indiana sales taxes, Delph added.

“It’s easier and cheaper to administer and it’s easier for all to understand,” said Delph. “The more you consume, the more you pay.”

With a combination of multiple recommendations from the Indiana Commission on Local Government Reform and with the elimination of property taxes, we have the opportunity to reduce the cost and burden of government for Hoosiers, Delph stated.

Delph represents portions of Hamilton and Marion counties.
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Here's a copy of the letter Senator Delph sent to our Governor:
January 2, 2008

The Honorable Mitch Daniels
Governor of Indiana
State House

Dear Governor Daniels,

I want to congratulate you on your efforts to reduce the size and cost of government and tackling the big challenge of bringing 19th century Hoosier government into the 21st century. My constituents want value and accountability when their tax dollars are spent. After participating in several meetings of the Senate Committee on Local Government and Elections regarding the assessing system, I am convinced more than ever that we need to eliminate property taxes. It’s not that assessors at all levels of government aren’t dedicated public servants, but that they serve an outdated system with too much room for human error.

The service economy makes up Indiana’s fastest growing segment which raises equity issues
relative to other segments of our economy in the area of public finance. The ideal tax system is
one with a broad base and a low rate, so that all pay their fair share and no one feels like they are being gouged by government relative to his or her neighbor. In short, government shouldn’t pick winners and losers to fund it, but rather, promote a fairer public finance system with a broad base and low rate. This would set Indiana apart, in a positive, way from its neighbors; not to mention benefit our citizens.

It is my hope that you will direct both your budget director and your other fiscal experts to run
the numbers for a complete shift to the “fair tax” or sales tax with a broader base. Incentives or
exemptions could be instituted for basic necessities. A fair tax gives taxpayers discretion and
choice. It’s easier and cheaper to administer and it’s easier for all to understand. The more you
consume, the more you pay.

Unfortunately, we have spent a great deal of time trying to improve a broken system, the propertytax system. Rather than hold onto this relic of Indiana yesteryear, be bold like your Major Moves initiative and your Blue Ribbon Commission. We cannot move Indiana’s economy or government forward while tied to this outdated, burdensome, costly, unfair, and un-American property tax system.

You are absolutely right, home ownership is sacred. Let’s enshrine that value by eliminating the
property tax completely. Combined with some of your other Blue Ribbon Commission findings,
it could make all the difference. I remain committed to helping reduce the cost and burden of
government for my constituents and our state.

Very respectfully,
Mike Delph
State Senator, SD 29