County feeling burden of caps

Local News

Discussion

January 11, 2009

Legislature set to make reforms permanent

By SCOTT SMITH The Kokomo Tribune Sun Jan 11, 2009, 10:26 PM EST

New estimates show property tax caps will reduce Hoosier property tax bills $121 million less than originally anticipated, state officials announced last week.

That’s why Howard County and Kokomo city officials are perplexed.

While estimates of the total statewide impact of the tax caps were downgraded, the impact on both Kokomo and Howard County are now expected to be even greater.

Kokomo city controller Jim Brannon had no immediate word from state officials Friday.

“I’m somewhat befuddled,” Brannon said. “The state cap loss dropped, and ours went up.”

Brannon said his only initial guess would be the implementation of a local option income tax — which replaces property tax revenue — might have something to do with the new numbers.

The Legislative Services Agency estimated last March that caps on property tax bills could reduce revenue to local governments by about $524 million in 2010, when the caps will be fully implemented.

The new estimates show an impact of about $403 million, or $121 million less than previously thought.

That’s good news for some local governments that feared being hit hard by the caps, but it also means that savings to taxpayers aren’t as great as previously estimated.

The new numbers have hurt some counties, but will help many others.

In Kokomo, the impact of the tax caps grew by about $140,000 over the next two years.

Using the initial figures put out last March, city officials thought they’d have $2.2 million less to spend over the two-year period of 2009 and 2010, due to the tax caps.

The new numbers issued this week show the caps will cost the city about $2.34 million over the next two years.

Howard County government originally expected to lose about $770,000. The new figures show the county losing more than $798,000.

But in Marion County, the projected revenue impact of the caps fell from $111 million under the old estimate to $63 million under the new figures. Vanderburgh County saw the impact fall from $6.5 million to $5.5 million.

The latest figures reflect updated property tax assessment and levy data, revised growth rates and other factors.

The property tax plan passed during the 2008 legislative session will cap property tax bills to homeowners at 1 percent of their home’s assessed value by 2010, with 2 percent limits on rental and agricultural property and 3 percent on business property.

Republican leaders in the Statehouse want to approve a proposed amendment that would put those limits into the state constitution. If the Indiana General Assembly approves the proposed constitutional amendment either in 2009 or 2010, the question would appear on the ballot for voter ratification in 2010.

But Democrats and local government officials want to wait to see the impact of the caps before making them more permanent. The revised numbers could come into play as lawmakers debate the issue.

Senate President Pro Tem David Long, R-Fort Wayne, said Thursday morning before the new numbers were released that lawmakers should move quickly to pass the constitutional amendment. He said local governments need to know that legislators are serious about making the property tax caps permanent.

“We’re asking local government to make changes and to be less reliant on property taxes,” Long said. “The sooner we lay down the gauntlet and say we’re going to go forward with the caps and it’s going to go to the voters in 2010, the sooner people can start budgeting and planning for the future at the local level.”

The Associated Press contributed to this story.

Text Only | Photo Reprints

Local News

Entire U.S. 31 corridor now under contract
Every segment of the 13.1-mile, U.S. 31 Kokomo Corridor is now officially under construction.

May 25, 2012 1 Photo
Northwestern to graduate 130 seniors
Peyton Hite ended her last day in high school by going home and washing sheep.

“It’s part of living on a farm,” she said, with a laugh.

May 25, 2012
Drugs, cash seized, four arrested
Police from four agencies seized heroin, pills, syringes and cash, and arrested four people this week after a raid on a house on East Street, according to police reports.

May 25, 2012 1 Photo
Lafayette job fair expects Kokomo hopefuls
Organizers of a Lafayette job fair next week are reaching out to Kokomo residents looking for work.

May 25, 2012
Deputy prosecutor facing two charges
A Howard County deputy prosecutor will face two drunken-driving charges in connection with a traffic stop in Cicero.

May 25, 2012
Governor honors student
A Northwestern High School senior achieved a milestone Thursday when he became the first Indiana student ever to win both of the state’s top science awards.

May 25, 2012 1 Photo
Taylor considering staff reductions
A decline in enrollment has forced Taylor School Corp. to consider staff reductions, but the board won’t vote on the issue until next week, officials said Thursday.

May 25, 2012
Schools among top 20 in Indiana
Three area schools were ranked among the top 20 in Indiana this year by U.S. News and World Report.

Tri-Central Middle/High School, Eastern Junior-Senior High School and Tipton High School all made the list, which was an evaluation of 379 high schools across the state.

May 25, 2012
Library starts iPad rental program
Apple can’t make enough iPads to satisfy demand, but the Kokomo-Howard County Public Library now owns 15 iPad2 units.

Thursday, social media-conscious library patrons scrambled to borrow the tablet computers, on the first official day of the library’s iPad lending program.

May 25, 2012 1 Photo
Gov. names NW student 'Mr. Science' for 2012
Tyler Barnes becomes first Indiana student to be named Indiana's Top Young Scientist and Mr. Science.

May 24, 2012
More Local News Headlines

Local News

Search Results

Discussion

County feeling burden of caps

Legislature set to make reforms permanent

Site Map

Contact Us