Monday, July 23, 2012

Local Officials Claim No Need for Income Tax in Porter County

From the Northwest Indiana Times:

Porter County Commissioner President John Evans, R-North, said last week he was aware of the rumors about interest in a new county income tax, but he and other local officials said they have not taken part in any discussions on the topic and do not see the need at this time for a new tax.

"I think we need to see where the 1-2-3 will leave us," Evans said, referring to the amendment making it unconstitutional for property taxpayers to pay rates higher than 1 percent of assessed value on owner-occupied homes, 2 percent on rental and farm properties and 3 percent on business and industrial properties.

The county is in a strong financial position with the proceeds from the 2007 sale of its hospital, he said. The county had nearly $173 million in proceeds as of late last week, including $11.7 million in interest.

Porter County Council President Dan Whitten, D-at large, said while he is opposed to any new taxes, he believes the financial concerns should be discussed to avoid ending up in place where a tax seems to be the only answer.

"Get in front of it," he said.

The way this will be done is for local units of government to find ways of reducing spending, rather than focusing on new sources of funding, Whitten said. The county and others also need to reconsider their use of tax increment financing districts, which fuels the financial challenges by capturing revenue from new developments at the expense of nearby taxing units, he said.

None of the County Council candidates contacted sees the need for a new local income tax at this time.
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http://www.nwitimes.com/news/local/porter/duneland/officials-no-need-for-new-income-tax-at-this-time/article_b6acb36b-542e-5e5a-92f8-e0f14b3f5fe4.html