Local communities bracing for lost property tax revenue

Noon Edition

Property tax reform has been a priority of Governor Mike Braun's administration from Day 1 of this year's General Assembly session.

Senate Bill 1 limits the property tax revenue Indiana counties receive by providing relief on property tax assessments. And while homeowners and businesses will see some relief, local governments are preparing for potential staff and service cuts due to the loss of revenue from the state.

Monroe County alone is projected to earn about $37 million less in revenue over the next three years, according to the state’s latest fiscal analysis.

Read more: County says it cannot do more with less

City and county officials said the bill puts the onus on local municipalities to make up the deficit.

“Because the state legislators who supported SB1 were too cowardly — and yes, I choose that word purposefully — to do their jobs, local governments are going to have to raise local income taxes to make up deficits. We’re not going to have a choice,” said Monroe County Commissioner Jody Madeira.

The uncertainty with the loss of funding loss is already having an effect. Monroe County Council Member Peter Iversen said the council does not want to make a financial promise that it cannot fulfill in five or 10 months. And that could mean hiring freezes and stagnant salaries.

Read more: Salary request discussion leads to tense exchange at county council meeting

The property tax bill will also affect the amount of money going to public schools.

On this week’s Noon Edition, we’ll discuss the property tax law and the impact it will have on local communities.

Join us on the air by calling 812-855-0811 or toll-free at 1-877-285-9348. You can also send questions for the show to [email protected].

You can also record your questions and send them in through email.

Guests

Jody Madeira, Monroe County Commissioner, District 3

Hopi Stosberg, Bloomington City Council Member, District 3

Anton Neff, Owen County Council Member, District 2