From the Northwest Indiana Times:
Property tax caps have become a double–edge sword that create a standardized tax structure but have been "devastating" to Indiana's municipalities, according to the head of the Indiana Association of Cities and Towns.
Matthew C. Greller spoke at the Gary Chamber of Commerce monthly meeting on Monday. The IACT executive director and CEO said Indiana municipalities have already lost out of $180 million they would have received before voters approved adding the property tax caps to the Indiana Constitution three years ago.
"It's easy to say to cities and towns to tighten your belt," said Greller of what he called the No. 1 challenge faced Indiana cities and towns. "We haven't thought through the long–term effects (of tax caps)."
"More than half of every dollar municipalities receive goes for public safety. For example, it's extremely expensive to outfit a firefighter. But without public safety, we have nothing," he said.
The problem is that there is little left over "to create other programs" including economic development efforts, Greller said. "There is complete erosion of parks and quality of life features."
Infrastructure is also falling behind with more than 50 percent of municipalities reducing street and road maintenance. In some rural counties, paved roads are being returned to gravel because it's too expensive to repave them, he said. "This is 19th Century or early 20th Century level services."
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Read more: http://www.nwitimes.com/business/local/property-tax-caps-devastating-to-indiana-municipalities/article_fe30f311-ec25-5358-bff5-1730a258b6d0.html#ixzz1rg3BNVFy
