Saturday, January 25, 2014

IBJ: Indy Chamber Proposes Commuter Tax

From the Indianapolis Business Journal:

Indy Chamber is making the case for a commuter tax, arguing that it’s the best way to solve continual fiscal problems threatening to make Marion County, thus the whole metro area, less competitive.

The concept, a local income tax on non-residents, requires a change in state law, which the chamber would not start chasing until the 2015 legislative session, at the earliest. CEO Michael Huber said the issue is one of the chamber’s top five priorities, and he promised that it won’t drop from the agenda.

“This is one of the most significant, if not the most significant, fiscal issues impacting Indianapolis’ ability to invest in its amenities, and therefore is a serious nine-county issue,” said Huber, former deputy mayor for economic development under Greg Ballard.

Indy Chamber is a regional membership organization, but it’s also in charge of attracting jobs and business investment to Marion County through Develop Indy, which works closely with city officials.

Corporate leaders worry that Indianapolis, which is struggling to cover budget basics like public safety, will not be able to grow its tax base fast enough to also invest in parks and other infrastructure that make the city attractive, Huber said.

Emmis Communications Corp. CEO Jeff Smulyan, whose company headquarters is on Monument Circle, said he’s always believed, even when he lived in Hamilton County, that commuters should pay for the roads they travel and services they use.

“There’s a fairness issue and I feel pretty strongly about it,” he said.

Smulyan said he also agrees that Indianapolis’ fiscal health affects the whole region.

“You can’t be a suburb of nothing,” he said, echoing the mantra of former Mayor Bill Hudnut.

Ballard is not ready to back a specific commuter-tax proposal, but Chief of Staff Ryan Vaughn said, “We absolutely believe there needs to be a discussion about it.”
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http://www.ibj.com/indy-chamber-proposes-commuter-tax/PARAMS/article/45740