Luncheon Tax Talk Hard to Digest(posted Sept 11) The current state of affairs with taxes in Wayne Township is not a rosy picture. A combination of loss of inventory tax, land locked township, Chrysler Plant demolition, tax increment financing, stagnant real estate market, and airport owned property has pushed the burden onto residential properties. The shift in burden has raised concerns with MSD Wayne Township Superintendent Terry Thompson, who invited State Representative Phil Hinkle and Township Assessor Mike McCormack to discuss the issue at the school's quarterly business community luncheon. Hinkle said he expected things to be different at the state house this year to address property taxes, although he added "there are a few legislators who think the property tax situation will 'blow over' and no reform is necessary." For most legislators, reality set in last January and February when it was estimated that residential property taxes would increase by 25 to 26 percent. Legislators scrambled to provide a $200 million relief package. "The $200 million relief was not enough," he said. The legislators are expecting to roll up their sleeves and begin addressing the tax situation in November and December instead of waiting until the formal convening in January. Hinkle expects the session to end sooner than March 15 if they meet in November and December. One of the first orders of business in the early convening is to pass legislation to give validity to Governor Mitch Daniel's executive order to extend the tax deadlines. Hinkle is a firm believer that abolishing property taxes will stimulate economic growth which will cause other taxing revenues to grow exponentially and should not result in other excessive taxing options to cover the loss of a phased out property tax system. Hinkle is also working on legislation to encourage school attendance by denying public assistance dependent families their government checks if their children have a high absentee rate. He thinks he can get this legislation passed based on the requirements of the No Child Left Behind Act. His plan drew applause from the audience of educators and business owners. He told his constituency to stay involved because waning support will indicate to some of the powers that be that the tax problem has blown over. McCormack presented a bleak outlook on the Governor's order for reassessment to correct the Department of Local Government Finance's claim that errors in commercial vacant property occurred in Wayne Township. McCormack said the assessment on commercial property would have to increase by 20 percent to lower residential property by three percent. He said the market value is not there to increase the commercial property assessment. McCormack is continuing the challenge to push the Indianapolis Airport Authority to place its non aviation business users on the tax rolls. He said a recent victory occurred when the Indiana Board of Tax Review required an insurance company in Lake County to be ineligible for tax exempt status even though the business is located on airport property. He hopes this will become a precedent for the IAA to do the same thing. The review board ruled it was not an aviation use. Mr. Dennis Tackitt, Wayne Township Chief Financial Officer, contends the school district has lost about $1 billion in assessed valuation because of the airport's tax increment financing district. The school tax rate would be 25 percent less if the school could capture this money. |
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