From the Richmond Palladium-Item:
Farmland property taxes would rise significantly next year if the Indiana General Assembly fails to again pass a bill stalling the use of new soil productivity factors.
State Sen. Jean Leising, R-Oldenburg, authored Senate Bill 111 delaying the new factors. The bill, which passed the Senate last month on a 48-0 vote, maintains soil productivity factors used since March 1, 2011, and would be retroactive to Jan. 1. The bill will be considered by the Indiana House of Representatives.
The same bill was passed by the General Assembly in 2013, a bill which also required the Department of Local Government Finance and the Purdue University School of Agriculture to provide a report on the proposed soil productivity factors.
The report was due to the General Assembly by Nov. 1, 2013.
“They didn’t get the job done,” Leising said. “DLGF and Purdue were charged with looking at the proposed formula and it didn’t happen.”
The two agencies have worked on the issue, but the data from the Natural Resources Conservation Service also includes “management,” factors and Indiana’s soil productivity factors already were based on average management, Farm Bureau lobbyist Katrina Hall said.
“Adjustments are needed,” Hall said. “There’s the potential of a $57 million increase for farmers without much reason.
The NRCS forwarded information to DLGF without any other input. There should not be changes without an open process.”
Last week, DLGF issued a memo to county assessors saying productivity factors changes likely will be delayed another year, Hall said.
Assessors preparing for the March 1, 2014, assessment date were told they might again be using soil productivity factors used in 2011, 2012 and 2013, and software vendors should be prepared for that possibility, according to the DLGF memo.
“The Department of Local Government Finance does not consider the factors certified on Feb. 2, 2012, to be in effect and will continue to work towards new factors with the Purdue University School of Agriculture,” the memo said.
Farmland taxes already are increasing, even without changing the soil productivity factors, Leising said.
Farmers were seeing high grain prices and also much higher land prices, which are part of the assessment formula.
“Seven years ago, the base value of farmland was $880 an acre. This year, it’s $1,760 an acre, a 100 percent increase. It will triple in a couple more years,” Leising said. “Soil productivity factors have been constant until DLGF wanted to change them.
“If the soil productivity factors change, property tax bills could increase by 30 to 40 percent. It’s a very serious issue.”
http://www.pal-item.com/apps/pbcs.dll/article?AID=2014302160010
Showing posts with label Property Tax Legislation. Show all posts
Showing posts with label Property Tax Legislation. Show all posts
Monday, February 17, 2014
Wednesday, January 22, 2014
Truth Reports Elkhart County Lawmakers Proposing Bills on Taxes
From the South Bend Tribune:
Plenty of issues are getting headlines out of the statehouse in Indianapolis — prohibiting same-sex marriage, preschool funding, repealing the business property tax.
Those aren’t the only issues, though.
Following is a look at some of the proposals authored (unless otherwise noted) by Elkhart County’s delegation to the Indiana House. To the right is a map showing what part of Elkhart County each lawmaker represents.
Rep. Wes Culver, R-Goshen, District 49
...
Property valuations: House Bill 1065 places limits on the growth in the assessed valuation of real estate that’s had its value adjusted in a property tax appeal.
Income tax distributions: House Bill 1281 , echoing legislation Culver unsuccessfully proposed last year, aims to make the state return all income tax revenue due a county. Many Elkhart County officials maintain that the income tax revenue returned here from Indiana finance authorities falls short of the funds sent in the form of withholding taxes by employers to Indianapolis. Look here for an article on Culver’s initiative last year.
...
Rep. Tim Neese, R-Elkhart, District 48
...
RV sales tax: House Bill 1109 , co-authored by Neese, would eliminate the sales tax on recreational vehicles sold to out-of-state buyers. Look here for more.
...
...
http://blogs.etruth.com/county-buzz/2014/01/21/elkhart-co-lawmakers-proposing-bills-on-taxes-smoking-rvs-adoption/
Plenty of issues are getting headlines out of the statehouse in Indianapolis — prohibiting same-sex marriage, preschool funding, repealing the business property tax.
Those aren’t the only issues, though.
Following is a look at some of the proposals authored (unless otherwise noted) by Elkhart County’s delegation to the Indiana House. To the right is a map showing what part of Elkhart County each lawmaker represents.
Rep. Wes Culver, R-Goshen, District 49
Property valuations: House Bill 1065 places limits on the growth in the assessed valuation of real estate that’s had its value adjusted in a property tax appeal.
Income tax distributions: House Bill 1281 , echoing legislation Culver unsuccessfully proposed last year, aims to make the state return all income tax revenue due a county. Many Elkhart County officials maintain that the income tax revenue returned here from Indiana finance authorities falls short of the funds sent in the form of withholding taxes by employers to Indianapolis. Look here for an article on Culver’s initiative last year.
...
Rep. Tim Neese, R-Elkhart, District 48
...
RV sales tax: House Bill 1109 , co-authored by Neese, would eliminate the sales tax on recreational vehicles sold to out-of-state buyers. Look here for more.
...
Rep. Tim Wesco, R-Osceola, District 21
Local option income tax: House Bill 1405 would give individual counties a new type of local income tax to implement to help offset losses due to property tax caps. Specifically, his proposal — sought by Elkhart County officials — would permit implementation of a new tax to offset up to 75 percent of tax cap losses, but not larger than 1 percent.
...
Saturday, January 12, 2013
Farmers Seek Rescue from Property Tax Increase
From the Indianapolis Business Journal:
“Boy, when that memo came out, people noticed right away,” said Larry DeBoer, professor of agriculture economics and a property-tax expert at Purdue University.
The reaction from the farm lobby was especially sharp because the base tax rate on agricultural land has nearly doubled since 2007, from $880 per acre to $1,630 per acre. That’s because interest rates are low, and commodity prices have been at historic levels.
At the urging of Indiana Farm Bureau, the Legislature in 2012 pushed through a one-year delay. This session, Sen. Jean Leising, R-Oldenburg, and Rep. Don Lehe, R-Brookston, have filed companion bills that would make the delay indefinite.
The Department of Local Government Finance would have to get legislative approval before using a new soil factor.
...
Indiana farmers hope to avoid significant property-tax hikes by changing the way the state values their soil.
That could mean a major policy change. In the meantime, state lawmakers have filed bills that would indefinitely delay any soil-related tax increase. A temporary delay already has saved farmers an estimated $57.4 million that would have been payable this year.
That could mean a major policy change. In the meantime, state lawmakers have filed bills that would indefinitely delay any soil-related tax increase. A temporary delay already has saved farmers an estimated $57.4 million that would have been payable this year.
The uproar centers on soil-productivity factors that are a key component of tax bills on farmland. New factors, issued last year by the Department of Local Government Finance, would have raised tax collections an average 18.5 percent this year, according to a Legislative Services Agency survey of 69 counties.
“Boy, when that memo came out, people noticed right away,” said Larry DeBoer, professor of agriculture economics and a property-tax expert at Purdue University.
The reaction from the farm lobby was especially sharp because the base tax rate on agricultural land has nearly doubled since 2007, from $880 per acre to $1,630 per acre. That’s because interest rates are low, and commodity prices have been at historic levels.
At the urging of Indiana Farm Bureau, the Legislature in 2012 pushed through a one-year delay. This session, Sen. Jean Leising, R-Oldenburg, and Rep. Don Lehe, R-Brookston, have filed companion bills that would make the delay indefinite.
The Department of Local Government Finance would have to get legislative approval before using a new soil factor.
...
See the full article here:
Tuesday, May 1, 2012
Recent Developments in Tax Sale Legislation
Meredith A. Devlin of the Law Firm of Bingham Greenbaum Doll LLP published an article on "Recent Developments in Indiana Real Estate Law," including the following excerpt on Tax Sales:
During the 2012 legislative session, the Indiana General Assembly made significant changes to the laws governing tax sale procedure. As a result, taxpayers now have the option of entering into an agreement with the county auditor for the repayment of delinquent real property taxes, an option that was previously only available to taxpayers in Lake County. Prior to this change, a county treasurer could accept partial payments, but the property could not be removed from the tax sale list unless the delinquency (including applicable penalties, interest and costs) was paid in full. Now, if a taxpayer enters into a written agreement with the auditor’s office that meets the guidelines of the statute, the property will not be included on the tax sale list. In order to take advantage of this option, the agreement must require the taxpayer to pay the delinquency prior to the end of the following June.
Additionally, the General Assembly also added a provision that allows the county treasurer to extend the redemption period for property not sold during the tax sale. In most cases, the redemption period is one year. The treasurer may grant an extension if the taxpayer and the treasurer enter into a mutually satisfactory repayment agreement before the redemption period expires. As long as the taxpayer does not default in making the payments required under the agreement, the taxpayer will have up to one year from the date of the agreement to redeem the property.
Finally, the General Assembly also added a new time-limited provision that allows the fiscal body of a county to adopt an ordinance to modify the minimum bid required to purchase real property at the tax sale. Prior to this addition, the treasurer could not accept a bid lower than the sum of the delinquent taxes, the corresponding interest and penalties and other costs. However, a county may now pass an ordinance that allows the treasurer to accept the lesser of:
For the full article:
http://www.bgdlegal.com/pubs/xprPubDetail.aspx?xpST=PubDetail&pub=1167
(Thanks to The Indiana Law Blog (http://www.indianalawblog.com/) for the link)
During the 2012 legislative session, the Indiana General Assembly made significant changes to the laws governing tax sale procedure. As a result, taxpayers now have the option of entering into an agreement with the county auditor for the repayment of delinquent real property taxes, an option that was previously only available to taxpayers in Lake County. Prior to this change, a county treasurer could accept partial payments, but the property could not be removed from the tax sale list unless the delinquency (including applicable penalties, interest and costs) was paid in full. Now, if a taxpayer enters into a written agreement with the auditor’s office that meets the guidelines of the statute, the property will not be included on the tax sale list. In order to take advantage of this option, the agreement must require the taxpayer to pay the delinquency prior to the end of the following June.
Additionally, the General Assembly also added a provision that allows the county treasurer to extend the redemption period for property not sold during the tax sale. In most cases, the redemption period is one year. The treasurer may grant an extension if the taxpayer and the treasurer enter into a mutually satisfactory repayment agreement before the redemption period expires. As long as the taxpayer does not default in making the payments required under the agreement, the taxpayer will have up to one year from the date of the agreement to redeem the property.
Finally, the General Assembly also added a new time-limited provision that allows the fiscal body of a county to adopt an ordinance to modify the minimum bid required to purchase real property at the tax sale. Prior to this addition, the treasurer could not accept a bid lower than the sum of the delinquent taxes, the corresponding interest and penalties and other costs. However, a county may now pass an ordinance that allows the treasurer to accept the lesser of:
- the aforementioned sum; or
- 75 percent of the gross assessed value of the property.
For the full article:
http://www.bgdlegal.com/pubs/xprPubDetail.aspx?xpST=PubDetail&pub=1167
(Thanks to The Indiana Law Blog (http://www.indianalawblog.com/) for the link)
Wednesday, April 4, 2012
Editorial in the Ft Wayne Journal-Gazette Finds "the Good, the Bad, and the Ugly" in Property Tax Reform
Tax policy lessons
A property tax report from Indiana’s nonpartisan
Legislative Services Agency offers the good, the bad and the ugly from changes
wrought by 2008’s property tax overhaul. The ugliest effect is the inequitable
distribution of tax-cap credits favoring owners of higher-priced homes.
Ideally, the report could serve as a guideline
in creating a more equitable property tax policy, but the mad rush to enshrine
tax-cap limits in the state constitution before their full effects were known
most likely means Hoosiers are stuck with them.
Going forward, the report should inform the
state’s overall tax policy. One good feature is that taxpayers appear to have
more stability in their property tax bills. But a tax system perceived to be
unfair is even more troubling than an unpredictable one.
The good
•Ninety-two percent of homeowners saw a lower
tax bill in 2011 than in 2007.
•The average homestead tax bill decreased by
30.3 percent.
•Almost 20 percent of homesteads saw decreases
of 50 percent or more.
The bad
•The elimination of the homestead credit, phased
out entirely last year, resulted in a 4.4 percent property tax increase in
2011.
•Reductions in local credits contributed to
large percentage increases in homestead tax bills in several counties,
including Noble, Wabash and Wells.
•Since the state switched to market-value
assessments in 2002, bills due in 2011 were the first to show effects of a
deduction in gross assessed value of property. It fell from 2009 to 2010 –
apparently the effect of the recession.
The ugly
•Nine percent of tax levies for schools and
local governments were lost to circuit-breaker tax caps in 2011, for a total of
$616 million in lost revenue statewide.
•Forty-two percent of the tax credits were for
properties falling under the 2 percent tax-cap limit, which applies to rental
property and second homes.
•Property values reduced by the recession
resulted in higher 2011 tax rates, while higher rates made more property owners
eligible for tax-cap credits. Because the increase in credits exceeded the
increase in the levy, property tax revenue decreased in some counties,
including Allen County.
In addition to the statewide report, Allen
County Auditor Tera Klutz prepared an annual property tax report that offers an
interesting look at how the circuit-breaker credits play out. A breakdown by
taxing district gives a clear picture of how the credits flow primarily to
those areas with multiple layers of taxation and to property owners with more
expensive homes. In the Leo-Cedarville taxing district, for example, a
homestead property must be assessed at $279,710 before the circuit-breaker is
triggered. Only 26 homeowners there received a credit for 2012.
By contrast, practically all Hoosiers are paying
more as a result of the 2008 sales-tax increase of 17 percent that helped fund
the property tax cut, a regressive policy that went into effect just as the
full effects of the economic downturn were felt.
Who benefits
Some lessons emerge: While nearly all homeowners
have realized a break since the property tax overhaul, the tax-cap credits have
disproportionately flowed to owners of more costly properties. But the lost
revenue for schools, libraries and other local units of government affects all
Hoosiers, even those who didn’t receive a tax credit.
The next time tax policy changes are proposed,
lawmakers should be reminded of who came out ahead this time around.
Monday, March 26, 2012
Legislation Delays Assessment Increases Due to Soil Productivity Adjustments
From the Richmond Palladium- Item:
Farm Notes
"The Indiana General Assembly approved two changes sought by the Indiana Farm Bureau in its 2012 session.
Elimination of the state inheritance tax and delaying the use of new soil productivity adjustments for property taxes provide immediate, tangible benefits for all Hoosier farm families, IFB President Don Villwock said. The property tax changes are estimated to save Indiana farmers about $57.4 million next year.
The application of new soil productivity factors that were announced by the Department of Local Government Finance in early February will be delayed. The productivity factors, used to adjust the base assessed value of farmland, have been consistent for more than a quarter century, Villwock said. The new factors would have significantly increased the assessed value of farmland in the state and the property taxes paid on that land, he said.
Senate Enrolled Act 293 will phase out Indiana's inheritance tax over a nine-year period beginning in 2013. The act also increases from $100,000 to $250,000 the amount that may be inherited by the deceased's children and their children's surviving spouses before the inheritance tax is assessed. The increased exemptions will be in effect for the estates of anyone who died on or after Jan. 1, 2012."
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012203250315
Farm Notes
"The Indiana General Assembly approved two changes sought by the Indiana Farm Bureau in its 2012 session.
Elimination of the state inheritance tax and delaying the use of new soil productivity adjustments for property taxes provide immediate, tangible benefits for all Hoosier farm families, IFB President Don Villwock said. The property tax changes are estimated to save Indiana farmers about $57.4 million next year.
The application of new soil productivity factors that were announced by the Department of Local Government Finance in early February will be delayed. The productivity factors, used to adjust the base assessed value of farmland, have been consistent for more than a quarter century, Villwock said. The new factors would have significantly increased the assessed value of farmland in the state and the property taxes paid on that land, he said.
Senate Enrolled Act 293 will phase out Indiana's inheritance tax over a nine-year period beginning in 2013. The act also increases from $100,000 to $250,000 the amount that may be inherited by the deceased's children and their children's surviving spouses before the inheritance tax is assessed. The increased exemptions will be in effect for the estates of anyone who died on or after Jan. 1, 2012."
http://www.pal-item.com/apps/pbcs.dll/article?AID=2012203250315
Saturday, March 24, 2012
Legislature Delays Implementation of New Soil Productivity Factors
By Memo dated February 2, 2012:
"The Department of Local Government Finance ("the Department") recently requested and recieved updated Soil Productivity Factors from the Natural Resources Conservation Service of the United States Department of Agriculture ("USDA"). The updated Soil Productivity Factors are to be applied and used as a part of the March 1, 2012, general reassessment.
... The best soil productivity in the state is now approximately 1.66 (changed from 1.28), while the poorest remains .50."
http://www.in.gov/dlgf/files/120202_Soil_Productivity_Factor_Update.pdf
On March 19, 2012, the Governor signed into law SEA 19, which provides as follows:
SECTION 9. IC 6-1.1-4-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE FEBRUARY 29, 2012 (RETROACTIVE)]: Sec. 13. (a) In assessing or reassessing land, the land shall be assessed as agricultural land only when it is devoted to agricultural use.
(b) The department of local government finance shall give written notice to each county assessor of:
(1) the availability of the United States Department of Agriculture's soil survey data; and
(2) the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map.
All assessing officials and the property tax assessment board of appeals shall use the data in determining the true tax value of agricultural land. However, notwithstanding the availability of new soil productivity factors and the department of local government finance's notice of the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map for the March 1, 2012, assessment date, the soil productivity factors used for the March 1, 2011, assessment date shall be used for the March 1, 2012, assessment date. New soil productivity factors shall be used for assessment dates occurring after March 1, 2012.
(c) The department of local government finance shall by rule provide for the method for determining the true tax value of each parcel of agricultural land.
(d) This section does not apply to land purchased for industrial, commercial, or residential uses.
http://www.in.gov/legislative/bills/2012/SE/SE0019.1.html
"The Department of Local Government Finance ("the Department") recently requested and recieved updated Soil Productivity Factors from the Natural Resources Conservation Service of the United States Department of Agriculture ("USDA"). The updated Soil Productivity Factors are to be applied and used as a part of the March 1, 2012, general reassessment.
... The best soil productivity in the state is now approximately 1.66 (changed from 1.28), while the poorest remains .50."
http://www.in.gov/dlgf/files/120202_Soil_Productivity_Factor_Update.pdf
On March 19, 2012, the Governor signed into law SEA 19, which provides as follows:
SECTION 9. IC 6-1.1-4-13 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE FEBRUARY 29, 2012 (RETROACTIVE)]: Sec. 13. (a) In assessing or reassessing land, the land shall be assessed as agricultural land only when it is devoted to agricultural use.
(b) The department of local government finance shall give written notice to each county assessor of:
(1) the availability of the United States Department of Agriculture's soil survey data; and
(2) the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map.
All assessing officials and the property tax assessment board of appeals shall use the data in determining the true tax value of agricultural land. However, notwithstanding the availability of new soil productivity factors and the department of local government finance's notice of the appropriate soil productivity factor for each type or classification of soil shown on the United States Department of Agriculture's soil survey map for the March 1, 2012, assessment date, the soil productivity factors used for the March 1, 2011, assessment date shall be used for the March 1, 2012, assessment date. New soil productivity factors shall be used for assessment dates occurring after March 1, 2012.
(c) The department of local government finance shall by rule provide for the method for determining the true tax value of each parcel of agricultural land.
(d) This section does not apply to land purchased for industrial, commercial, or residential uses.
http://www.in.gov/legislative/bills/2012/SE/SE0019.1.html
Thursday, March 15, 2012
Governor Signs Property Tax Amnesty Bill into Law
From the Northwest Indiana Times:
"Gov. Mitch Daniels signed 32 bills into law Wednesday, including a measure allowing counties to offer a one-time amnesty to property owners behind on their tax bills.
House Enrolled Act 1090 permits counties to waive fees and interest added before 2012 as long as the back taxes are paid and current by July 1, 2013.
Counties can now also sell tax sale properties for 75 percent of their assessed value instead of requiring payment of all outstanding taxes and fees, which sometimes can exceed the value of the property.
The legislation was sponsored by state Reps. Mara Candelaria Reardon, D-Munster, and Ed Soliday, R-Valparaiso, and state Sens. Earline Rogers, D-Gary, Ed Charbonneau, R-Valparaiso, and Lonnie Randolph, D-East Chicago."
Read more: http://www.nwitimes.com/news/local/govt-and-politics/governor-signs-property-tax-amnesty-other-bills-into-law/article_8ac5c829-7eb7-5617-aad5-0d1a791318e5.html#ixzz1pEZ2Suwq
"Gov. Mitch Daniels signed 32 bills into law Wednesday, including a measure allowing counties to offer a one-time amnesty to property owners behind on their tax bills.
House Enrolled Act 1090 permits counties to waive fees and interest added before 2012 as long as the back taxes are paid and current by July 1, 2013.
Counties can now also sell tax sale properties for 75 percent of their assessed value instead of requiring payment of all outstanding taxes and fees, which sometimes can exceed the value of the property.
The legislation was sponsored by state Reps. Mara Candelaria Reardon, D-Munster, and Ed Soliday, R-Valparaiso, and state Sens. Earline Rogers, D-Gary, Ed Charbonneau, R-Valparaiso, and Lonnie Randolph, D-East Chicago."
Read more: http://www.nwitimes.com/news/local/govt-and-politics/governor-signs-property-tax-amnesty-other-bills-into-law/article_8ac5c829-7eb7-5617-aad5-0d1a791318e5.html#ixzz1pEZ2Suwq
Tuesday, March 13, 2012
Slow progress on efforts to reform local government
From the News and Tribune:
"Getting property tax bills out on time may not seem like a headline-grabber, but for supporters of a sweeping government reform effort, it’s big news.
Four years ago, not a single county in Indiana hit the deadline for sending out tax bills that generate revenues needed to keep the gears of local government moving. The following year, only two did.
Last year, 90 of Indiana’s 92 counties made the deadline.
The difference has saved cities and schools millions in interest payments on tax anticipation loans while waiting for their counties to collect and hand over tax dollars.
State finance officials credit the dollars saved to a recommendation made in December 2007 by the Indiana Commission on Local Government Reform.
The bipartisan commission spent months coming up with a road map to streamline local government. In a report that called for sweeping changes, it issued 27 recommendations — including the one that led to the consolidation of township assessors under the county and a shift to more professional assessment standards.
But only about one-third of those 27 recommendations have come to fruition since.
That’s not enough for Gov. Mitch Daniels, who created the commission. Talking to reporters Monday — just two days after the Indiana General Assembly closed Daniels’ last legislative session — the governor bemoaned the fact that much of the bipartisan commission’s recommendations have met a bipartisan wall in the Legislature.
“I continue to be disappointed that we didn’t get more than one-third done,” Daniels said.
That’s not how one of the men who headed the commission’s work sees it, though.
Retiring Indiana Supreme Court Chief Justice Randall Shepard is the Republican who co-chaired what became known as the “Kernan-Shepard commission” with former Gov. Joe Kernan, a Democrat.
He thinks progress on local government reform has been impressive, given the resistance to change a system put largely in place before Indiana became a state.
Shepard recalls a conversation with commission members just as they were getting ready to release the 2007 report that called for virtually eliminating township government while consolidating hundreds of school and library districts and imposing new rules for financial accountability.
One member said it would be a “miracle” if everything in the report got done. Shepard said the response from another commission member was: “‘It’ll be a miracle if anything gets done.’”
So in Shepard’s estimation, getting one-third done “is a pretty good outcome.”
In the session that just ended, lawmakers passed a bill with roots in the Kernan-Shepard recommendations: Aimed at eliminating conflicts of interest and reducing nepotism in local government, it bars a local government employee from taking office as an elected official of the government he or she works for. It also bans a local government employee from supervising a relative in a local government job.
Similar legislation failed in past sessions.
Many of the recommendations made by the Kernan-Shepard commission in its 2007 “Streamlining Local Government” report have been met with resistance by local officials.
The report, subtitled “We’ve Got to Stop Governing Like This,” was based on the commission’s belief that there was too much local government and too little accountability for how local officials were spending taxpayer dollars.
It detailed Indiana’s cornucopia of local government units: almost 3,000 cities, towns, counties, townships and school corporations. And nearly 11,000 local officials to oversee it all. It found that only nine states had more local government than Indiana.
State Rep. Mike Karickhoff, one of 19 freshman Republicans in the House, won his seat in 2010 after he was critical of his opponent’s efforts to help House Democrats block the Kernan-Shepard reforms.
Karickhoff said the Kernan-Shepard recommendations are worthy of more effort by the Legislature, but he’s not a wholesale believer in the reforms.
He said efforts to eliminate township government, for example, ignore the fact that many Hoosiers see local government as more responsive to their needs than state and federal government.
“In some sections of Indiana, township government is the cornerstone of the community,” Karickhoff said. That seems especially so in rural areas that depend on volunteer fire departments in their townships for public safety. In urban areas, township trustees are known as the providers of “poor relief” for people in need.
The Kernan-Shepard report questioned the efficiency of the delivery of public safety and poor relief at the township level and it identified a myriad of problems, including little public reporting of how public money is spent.
Karickhoff says that’s why the Kernan-Shepard report has value beyond legislation that emerges from it: He said it’s pushed some forward-thinking local government units to look for ways to consolidate their services, before the state steps in to force them to do so. In Howard County, where he lives, the township trustees are talking about redrawing township boundaries to better match up with school district boundaries. The goal, he said, is more efficient delivery of services.
For Shepard, that marks progress. He’s pleased the commission’s report continues to generate legislative proposals four years after it was issued, rather than being shelved.
“There are very substantial changes that have been made (to local government),” he said. “I really see the glass as half full.”
http://newsandtribune.com/statenews/x1511614035/Slow-progress-on-efforts-to-reform-local-government
"Getting property tax bills out on time may not seem like a headline-grabber, but for supporters of a sweeping government reform effort, it’s big news.
Four years ago, not a single county in Indiana hit the deadline for sending out tax bills that generate revenues needed to keep the gears of local government moving. The following year, only two did.
Last year, 90 of Indiana’s 92 counties made the deadline.
The difference has saved cities and schools millions in interest payments on tax anticipation loans while waiting for their counties to collect and hand over tax dollars.
State finance officials credit the dollars saved to a recommendation made in December 2007 by the Indiana Commission on Local Government Reform.
The bipartisan commission spent months coming up with a road map to streamline local government. In a report that called for sweeping changes, it issued 27 recommendations — including the one that led to the consolidation of township assessors under the county and a shift to more professional assessment standards.
But only about one-third of those 27 recommendations have come to fruition since.
That’s not enough for Gov. Mitch Daniels, who created the commission. Talking to reporters Monday — just two days after the Indiana General Assembly closed Daniels’ last legislative session — the governor bemoaned the fact that much of the bipartisan commission’s recommendations have met a bipartisan wall in the Legislature.
“I continue to be disappointed that we didn’t get more than one-third done,” Daniels said.
That’s not how one of the men who headed the commission’s work sees it, though.
Retiring Indiana Supreme Court Chief Justice Randall Shepard is the Republican who co-chaired what became known as the “Kernan-Shepard commission” with former Gov. Joe Kernan, a Democrat.
He thinks progress on local government reform has been impressive, given the resistance to change a system put largely in place before Indiana became a state.
Shepard recalls a conversation with commission members just as they were getting ready to release the 2007 report that called for virtually eliminating township government while consolidating hundreds of school and library districts and imposing new rules for financial accountability.
One member said it would be a “miracle” if everything in the report got done. Shepard said the response from another commission member was: “‘It’ll be a miracle if anything gets done.’”
So in Shepard’s estimation, getting one-third done “is a pretty good outcome.”
In the session that just ended, lawmakers passed a bill with roots in the Kernan-Shepard recommendations: Aimed at eliminating conflicts of interest and reducing nepotism in local government, it bars a local government employee from taking office as an elected official of the government he or she works for. It also bans a local government employee from supervising a relative in a local government job.
Similar legislation failed in past sessions.
Many of the recommendations made by the Kernan-Shepard commission in its 2007 “Streamlining Local Government” report have been met with resistance by local officials.
The report, subtitled “We’ve Got to Stop Governing Like This,” was based on the commission’s belief that there was too much local government and too little accountability for how local officials were spending taxpayer dollars.
It detailed Indiana’s cornucopia of local government units: almost 3,000 cities, towns, counties, townships and school corporations. And nearly 11,000 local officials to oversee it all. It found that only nine states had more local government than Indiana.
State Rep. Mike Karickhoff, one of 19 freshman Republicans in the House, won his seat in 2010 after he was critical of his opponent’s efforts to help House Democrats block the Kernan-Shepard reforms.
Karickhoff said the Kernan-Shepard recommendations are worthy of more effort by the Legislature, but he’s not a wholesale believer in the reforms.
He said efforts to eliminate township government, for example, ignore the fact that many Hoosiers see local government as more responsive to their needs than state and federal government.
“In some sections of Indiana, township government is the cornerstone of the community,” Karickhoff said. That seems especially so in rural areas that depend on volunteer fire departments in their townships for public safety. In urban areas, township trustees are known as the providers of “poor relief” for people in need.
The Kernan-Shepard report questioned the efficiency of the delivery of public safety and poor relief at the township level and it identified a myriad of problems, including little public reporting of how public money is spent.
Karickhoff says that’s why the Kernan-Shepard report has value beyond legislation that emerges from it: He said it’s pushed some forward-thinking local government units to look for ways to consolidate their services, before the state steps in to force them to do so. In Howard County, where he lives, the township trustees are talking about redrawing township boundaries to better match up with school district boundaries. The goal, he said, is more efficient delivery of services.
For Shepard, that marks progress. He’s pleased the commission’s report continues to generate legislative proposals four years after it was issued, rather than being shelved.
“There are very substantial changes that have been made (to local government),” he said. “I really see the glass as half full.”
http://newsandtribune.com/statenews/x1511614035/Slow-progress-on-efforts-to-reform-local-government
School bus fees near the end in Franklin Township
From the Indianapolis Star:
"The controversial pay-to-ride bus service in a cash-strapped Indianapolis school district could be coming to an end soon.
The fee-based system in Franklin Township Schools would be forbidden under a measure passed by the Indiana General Assembly and expected to be signed into law by Gov. Mitch Daniels.
The bill, authored by Rep. Mike Speedy, R-Indianapolis, bans school districts from handing buses to an outside company that charges parents for transportation.
"I consider this a public safety issue," Speedy said. "Given the infrastructure of Franklin Township, the county roads without sidewalks, it really begs that the school district provide transportation."
Franklin Township Schools outraged parents when it handed its buses over to a nonprofit company that began charging parents $47.50 per month for a child to ride the school bus. The district took the step after voters rejected a property tax increase to help in school funding.
...
Speedy said a judge or a state agency could order Franklin Township to reimburse parents who paid for bus service this year.
"I believe this year's transportation services should have been paid out of their rainy day fund," Speedy said. "I would not be surprised if I saw a governmental agency requiring the refund."
Superintendent Walter Bourke said another measure awaiting Daniels' signature gives district leaders a way to pay for transportation and other expenses next year.
Under that bill, boards at Franklin Township and several other cash-strapped school districts would have the power to refinance debt without a public referendum.
...
Franklin Township's School Board is scheduled to consider the bond refinancing plan at its March 26 meeting, Bourke said.
http://www.indystar.com/apps/pbcs.dll/article?AID=2012203130374
"The controversial pay-to-ride bus service in a cash-strapped Indianapolis school district could be coming to an end soon.
The fee-based system in Franklin Township Schools would be forbidden under a measure passed by the Indiana General Assembly and expected to be signed into law by Gov. Mitch Daniels.
The bill, authored by Rep. Mike Speedy, R-Indianapolis, bans school districts from handing buses to an outside company that charges parents for transportation.
"I consider this a public safety issue," Speedy said. "Given the infrastructure of Franklin Township, the county roads without sidewalks, it really begs that the school district provide transportation."
Franklin Township Schools outraged parents when it handed its buses over to a nonprofit company that began charging parents $47.50 per month for a child to ride the school bus. The district took the step after voters rejected a property tax increase to help in school funding.
...
Speedy said a judge or a state agency could order Franklin Township to reimburse parents who paid for bus service this year.
"I believe this year's transportation services should have been paid out of their rainy day fund," Speedy said. "I would not be surprised if I saw a governmental agency requiring the refund."
Superintendent Walter Bourke said another measure awaiting Daniels' signature gives district leaders a way to pay for transportation and other expenses next year.
Under that bill, boards at Franklin Township and several other cash-strapped school districts would have the power to refinance debt without a public referendum.
...
Franklin Township's School Board is scheduled to consider the bond refinancing plan at its March 26 meeting, Bourke said.
http://www.indystar.com/apps/pbcs.dll/article?AID=2012203130374
Friday, March 9, 2012
Local Governments Can Get Emergency Managers to Fix Finances Under Bill Passed
From the Northwest Indiana Times:
"Local governments and school corporations in financial distress could ask a state board to appoint an emergency manager to fix their finances under legislation approved by the Indiana General Assembly Friday.
House Bill 1192 empowers an emergency manager appointed by the Indiana Distressed Unit Appeals Board to reduce spending, cut payroll and renegotiate contracts without first obtaining the consent of elected officials.
The emergency manager could not raise taxes, but would hold power until the financial distress was resolved.
State Sen. Ed Charbonneau, R-Valparaiso, sponsored the legislation because he said the state's property tax caps have put significant financial pressure on local governments.
"At least we now have an option for a local unit of government that really needs help, and recognizes they need help, to get it," Charbonneau said.
The House approved the legislation, 96-0. The Senate vote was 48-1.
It now goes to the governor."
Read more: http://www.nwitimes.com/news/local/govt-and-politics/local-governments-may-get-to-ask-emergency-manager-for-financial/article_8de7cc49-8197-5908-879a-5861383f512e.html#ixzz1ogJ5RTKm
"Local governments and school corporations in financial distress could ask a state board to appoint an emergency manager to fix their finances under legislation approved by the Indiana General Assembly Friday.
House Bill 1192 empowers an emergency manager appointed by the Indiana Distressed Unit Appeals Board to reduce spending, cut payroll and renegotiate contracts without first obtaining the consent of elected officials.
The emergency manager could not raise taxes, but would hold power until the financial distress was resolved.
State Sen. Ed Charbonneau, R-Valparaiso, sponsored the legislation because he said the state's property tax caps have put significant financial pressure on local governments.
"At least we now have an option for a local unit of government that really needs help, and recognizes they need help, to get it," Charbonneau said.
The House approved the legislation, 96-0. The Senate vote was 48-1.
It now goes to the governor."
Read more: http://www.nwitimes.com/news/local/govt-and-politics/local-governments-may-get-to-ask-emergency-manager-for-financial/article_8de7cc49-8197-5908-879a-5861383f512e.html#ixzz1ogJ5RTKm
Legislation Passes to Penalize LaPorte
From the Northwest Indiana Times:
"State lawmakers on Friday told LaPorte County to get current on its long-delayed property tax billings or pay the price.
The Republican-controlled General Assembly approved Senate Bill 19, requiring the county pay $1 million a year to local government and schools if back tax bills are still uncollected by Jan. 31, 2013.
LaPorte County cities and schools have paid millions in interest on tax-anticipation loans while waiting for the county to collect and hand over their tax dollars. A contested property reassessment has delayed some billings since 2008.
"This will expedite that process to make sure it happens; we can stop throwing taxpayer dollars out the window paying interest and do what every other county in the state is doing," said state Rep. Tom Dermody, R-LaPorte.
The House approved the measure, 90-6. The Senate vote was 36-14.
The legislation still must be signed by Republican Gov. Mitch Daniels to become law."
Read more: http://www.nwitimes.com/news/local/laporte/lawmakers-agree-to-penalize-laporte-co-for-late-tax-bills/article_d6772a55-bca5-5eb4-a334-4bb3839fca40.html#ixzz1ogId5LNN
"State lawmakers on Friday told LaPorte County to get current on its long-delayed property tax billings or pay the price.
The Republican-controlled General Assembly approved Senate Bill 19, requiring the county pay $1 million a year to local government and schools if back tax bills are still uncollected by Jan. 31, 2013.
LaPorte County cities and schools have paid millions in interest on tax-anticipation loans while waiting for the county to collect and hand over their tax dollars. A contested property reassessment has delayed some billings since 2008.
"This will expedite that process to make sure it happens; we can stop throwing taxpayer dollars out the window paying interest and do what every other county in the state is doing," said state Rep. Tom Dermody, R-LaPorte.
The House approved the measure, 90-6. The Senate vote was 36-14.
The legislation still must be signed by Republican Gov. Mitch Daniels to become law."
Read more: http://www.nwitimes.com/news/local/laporte/lawmakers-agree-to-penalize-laporte-co-for-late-tax-bills/article_d6772a55-bca5-5eb4-a334-4bb3839fca40.html#ixzz1ogId5LNN
Thursday, March 8, 2012
Property Tax Amnesty Bill Goes to Governor
From the Northwest Indiana Times:
"Three measures that significantly could affect county tax collections, local business operations and alcohol sales in Porter County are headed to the governor after the House agreed to Senate-approved changes to the legislation Monday.
• Tax amnesty: House Bill 1090 allows counties to offer a one-time amnesty to property owners behind on their tax bills. Under the plan, counties could waive fees and interest added before 2012 as long as the back taxes are paid and current by July 1, 2013.
"It's a good thing for taxpayers to have these penalties and fees waived," said state Rep. Mara Candelaria Reardon, D-Munster.
The legislation also permits counties to sell tax sale properties for 75 percent of their assessed value. A tax sale purchaser currently must pay all of the outstanding taxes and fees, which sometimes can exceed the value of the property."
Read more: http://www.nwitimes.com/news/state-and-regional/indiana/house-sends-tax-amnesty-bath-salts-alcohol-bills-to-governor/article_f8c7a50c-599d-5680-9de8-d0699d2e5661.html#ixzz1oZYYzSoL
"Three measures that significantly could affect county tax collections, local business operations and alcohol sales in Porter County are headed to the governor after the House agreed to Senate-approved changes to the legislation Monday.
• Tax amnesty: House Bill 1090 allows counties to offer a one-time amnesty to property owners behind on their tax bills. Under the plan, counties could waive fees and interest added before 2012 as long as the back taxes are paid and current by July 1, 2013.
"It's a good thing for taxpayers to have these penalties and fees waived," said state Rep. Mara Candelaria Reardon, D-Munster.
The legislation also permits counties to sell tax sale properties for 75 percent of their assessed value. A tax sale purchaser currently must pay all of the outstanding taxes and fees, which sometimes can exceed the value of the property."
Read more: http://www.nwitimes.com/news/state-and-regional/indiana/house-sends-tax-amnesty-bath-salts-alcohol-bills-to-governor/article_f8c7a50c-599d-5680-9de8-d0699d2e5661.html#ixzz1oZYYzSoL
Tuesday, March 6, 2012
Indiana tax revenues concern Senate budget leader
From the Indianapolis Business Journal:
"The Indiana Senate's budget leader says a two-month shortfall in state tax revenues won't threaten plans for directing more money toward full-day kindergarten programs and victims of the state fair stage collapse.
But Senate Appropriations Committee Chairman Luke Kenley said Tuesday the revenue shortfall makes him more wary of speeding up a proposed phase-out of the state inheritance tax and issuing automatic taxpayer refunds championed by Gov. Mitch Daniels without having more money in the bank.
Legislative budget leaders are trying to reach agreements before the end of this week, when legislative leaders plan to adjourn the 2012 session.
State tax revenues came in about 4 percent less than expected for January and February, but are still slightly ahead of projections for the total budget year."
http://www.ibj.com/indiana-tax-revenues-concern-senate-budget-leader/PARAMS/article/33078
"The Indiana Senate's budget leader says a two-month shortfall in state tax revenues won't threaten plans for directing more money toward full-day kindergarten programs and victims of the state fair stage collapse.
But Senate Appropriations Committee Chairman Luke Kenley said Tuesday the revenue shortfall makes him more wary of speeding up a proposed phase-out of the state inheritance tax and issuing automatic taxpayer refunds championed by Gov. Mitch Daniels without having more money in the bank.
Legislative budget leaders are trying to reach agreements before the end of this week, when legislative leaders plan to adjourn the 2012 session.
State tax revenues came in about 4 percent less than expected for January and February, but are still slightly ahead of projections for the total budget year."
http://www.ibj.com/indiana-tax-revenues-concern-senate-budget-leader/PARAMS/article/33078
Friday, March 2, 2012
SB 19 as Amended by the House to Sanction LaPorte County for Delayed Tax Bills
An excerpt of SB 19 as it passed the House -
Chapter 22.6. Resolution of Multi-Year Delay in Issuance of Tax Bills
...
Sec. 14. The general assembly finds that LaPorte County qualified as a county subject to this chapter on February 1, 2012.
...
Sec. 18. (a) Subject to subsection (b), a covered county shall set aside in a separate fund on the schedule specified by the department from the funds specified by the department, one million dollars ($1,000,000) for each consecutive year that the county experienced delayed property taxes before the year in which the county qualifies as a covered county.
(b) The amount that must be set aside under subsection (a) for a particular year that the county experienced delayed property taxes is reduced:
(1) to zero (0), if all reconciliation statements for the delayed property taxes covered by subsection (a) and not previously billed are mailed or otherwise transmitted to taxpayers before January 16 of the year immediately following the year that the county becomes a covered county; and
(2) by twenty-five percent (25%), if all reconciliation statements for delayed property taxes covered by subsection (a) and not previously billed are mailed or otherwise transmitted to taxpayers before March 1 of the year immediately following the year that the county becomes a covered county.
(c) The amount set aside under this section for a particular year in which eligible taxing units experienced delayed property taxes shall be used to compensate eligible taxing units for:
(1) interest and other costs incurred by an eligible taxing unit for issuing anticipation warrants or other obligations to fund the eligible taxing unit's operating and capital requirements during a period in which the eligible taxing unit experienced delayed property tax collections; and
(2) interest, at the adjusted rate for the period determined under IC 6-8.1-10-1, on the amount of the delayed property taxes not received by the eligible taxing unit, if the eligible taxing unit self-funded its operating and capital requirements during a period in which the eligible taxing unit experienced delayed property tax collections rather than issue anticipation warrants or other obligations.
...
Sec. 20. (a) Subject to the approval of the department, a county executive of a covered county may employ one (1) or more special masters and the number of deputy special masters needed by the special masters to carry out substantially all of the duties of:
(1) the county auditor; or
(2) the county treasurer;
or both, as is necessary to issue property tax bills in each year that the county is a covered county, including the year that the county ceases to be a covered county.
http://www.in.gov/legislative/bills/2012/ES/ES0019.2.html
Chapter 22.6. Resolution of Multi-Year Delay in Issuance of Tax Bills
...
Sec. 14. The general assembly finds that LaPorte County qualified as a county subject to this chapter on February 1, 2012.
...
Sec. 18. (a) Subject to subsection (b), a covered county shall set aside in a separate fund on the schedule specified by the department from the funds specified by the department, one million dollars ($1,000,000) for each consecutive year that the county experienced delayed property taxes before the year in which the county qualifies as a covered county.
(b) The amount that must be set aside under subsection (a) for a particular year that the county experienced delayed property taxes is reduced:
(1) to zero (0), if all reconciliation statements for the delayed property taxes covered by subsection (a) and not previously billed are mailed or otherwise transmitted to taxpayers before January 16 of the year immediately following the year that the county becomes a covered county; and
(2) by twenty-five percent (25%), if all reconciliation statements for delayed property taxes covered by subsection (a) and not previously billed are mailed or otherwise transmitted to taxpayers before March 1 of the year immediately following the year that the county becomes a covered county.
(c) The amount set aside under this section for a particular year in which eligible taxing units experienced delayed property taxes shall be used to compensate eligible taxing units for:
(1) interest and other costs incurred by an eligible taxing unit for issuing anticipation warrants or other obligations to fund the eligible taxing unit's operating and capital requirements during a period in which the eligible taxing unit experienced delayed property tax collections; and
(2) interest, at the adjusted rate for the period determined under IC 6-8.1-10-1, on the amount of the delayed property taxes not received by the eligible taxing unit, if the eligible taxing unit self-funded its operating and capital requirements during a period in which the eligible taxing unit experienced delayed property tax collections rather than issue anticipation warrants or other obligations.
...
Sec. 20. (a) Subject to the approval of the department, a county executive of a covered county may employ one (1) or more special masters and the number of deputy special masters needed by the special masters to carry out substantially all of the duties of:
(1) the county auditor; or
(2) the county treasurer;
or both, as is necessary to issue property tax bills in each year that the county is a covered county, including the year that the county ceases to be a covered county.
http://www.in.gov/legislative/bills/2012/ES/ES0019.2.html
Counties May Use Property Taxes to Maintain Highways Under SB 98
From the Northwest Indiana Times:
"Counties would be permitted to spend property tax revenue to maintain county highways under legislation headed to the governor.
The Republican-controlled Indiana Senate voted 46-1 Thursday to give final approval to Senate Bill 98. The Republican-controlled House approved it 93-1 on Tuesday.
The legislation allows counties to spend property tax or other miscellaneous general fund revenue on highway maintenance starting July 1, if Republican Gov. Mitch Daniels signs the measure into law.
Currently, property taxes can pay for county highway maintenance only in an emergency and with unanimous approval by the county council.
Maintaining county highways traditionally has been paid for by a combination of gasoline taxes, vehicle registration fees, county vehicle surtax, county wheel tax, county income tax and riverboat gaming taxes.
State Sen. Ed Charbonneau, R-Valparaiso, co-sponsored the legislation."
Read more: http://www.nwitimes.com/news/local/govt-and-politics/property-taxes-may-be-used-to-pay-for-county-highway/article_28016b9d-82e5-5a1b-ae20-236d63ace620.html#ixzz1o0MLajOH
"Counties would be permitted to spend property tax revenue to maintain county highways under legislation headed to the governor.
The Republican-controlled Indiana Senate voted 46-1 Thursday to give final approval to Senate Bill 98. The Republican-controlled House approved it 93-1 on Tuesday.
The legislation allows counties to spend property tax or other miscellaneous general fund revenue on highway maintenance starting July 1, if Republican Gov. Mitch Daniels signs the measure into law.
Currently, property taxes can pay for county highway maintenance only in an emergency and with unanimous approval by the county council.
Maintaining county highways traditionally has been paid for by a combination of gasoline taxes, vehicle registration fees, county vehicle surtax, county wheel tax, county income tax and riverboat gaming taxes.
State Sen. Ed Charbonneau, R-Valparaiso, co-sponsored the legislation."
Read more: http://www.nwitimes.com/news/local/govt-and-politics/property-taxes-may-be-used-to-pay-for-county-highway/article_28016b9d-82e5-5a1b-ae20-236d63ace620.html#ixzz1o0MLajOH
Saturday, February 25, 2012
Proposed legislation to curb redevelopment commissions once again dies in Indiana General Assembly
From the Indianapolis Star:
"For the second year, the Indiana House has refused to consider legislation that would rein in redevelopment commissions like the one Carmel Mayor Jim Brainard has used to fund his city's massive redevelopment.
Sen. Luke Kenley, R-Noblesville, authored Senate Bill 25, which would stop the mayor-controlled commissions from spending large amounts of taxpayer money without approval from their city councils. The Senate has overwhelmingly approved the legislation the past two years, only to see it die in the House Government and Regulatory Reform Committee without so much as a hearing.
Kenley says it's a matter of protecting taxpayers. But House Speaker Brian Bosma, R-Indianapolis, and committee Chairman Kevin Mahan, R-Hartford City, say mayors throughout the state oppose the bill.
Mahan, a freshman lawmaker in his first year as chairman, said it was his decision to deny the bill a hearing. Kenley, though, placed the onus squarely on Bosma's shoulders.
...
Mahan also won't call a related bill -- Senate Bill 105 -- for a vote. The Senate passed legislation 48-2 to add a school board member to redevelopment commissions. Mahan gave that bill a hearing, but -- as with Kenley's bill -- he said lawmakers viewed it as targeting one community."
http://www.indystar.com/apps/pbcs.dll/article?AID=2012202250316
"For the second year, the Indiana House has refused to consider legislation that would rein in redevelopment commissions like the one Carmel Mayor Jim Brainard has used to fund his city's massive redevelopment.
Sen. Luke Kenley, R-Noblesville, authored Senate Bill 25, which would stop the mayor-controlled commissions from spending large amounts of taxpayer money without approval from their city councils. The Senate has overwhelmingly approved the legislation the past two years, only to see it die in the House Government and Regulatory Reform Committee without so much as a hearing.
Kenley says it's a matter of protecting taxpayers. But House Speaker Brian Bosma, R-Indianapolis, and committee Chairman Kevin Mahan, R-Hartford City, say mayors throughout the state oppose the bill.
Mahan, a freshman lawmaker in his first year as chairman, said it was his decision to deny the bill a hearing. Kenley, though, placed the onus squarely on Bosma's shoulders.
...
Mahan also won't call a related bill -- Senate Bill 105 -- for a vote. The Senate passed legislation 48-2 to add a school board member to redevelopment commissions. Mahan gave that bill a hearing, but -- as with Kenley's bill -- he said lawmakers viewed it as targeting one community."
http://www.indystar.com/apps/pbcs.dll/article?AID=2012202250316
Counties may get New Options for Unpaid Property Taxes
From the Northwest Indiana Times:
"Counties may be able to clear their backlogs of tax sale properties and get delinquent property owners back paying what they owe under legislation approved Tuesday by the Indiana Senate.
House Bill 1090 allows counties to adopt an ordinance reducing the minimum price for a tax sale property to 75 percent of the assessed value of the property.
Currently, tax sale purchasers must pay at least the total of back taxes, penalties, cost of the tax sale, the unpaid cost of prior tax sales and other county fees, which often exceeds the value of the property.
Allowing counties to accept 75 percent of the assessed value, or the current charges if they are lower, should get more parcels off the county's books and back on the tax rolls, said the sponsors, state Sen. Ed Charbonneau, R-Valparaiso, state Sen. Lonnie Randolph, D-East Chicago, and state Sen. Earline Rogers, D-Gary.
The legislation also allows counties to grant a one-time amnesty to property owners who are delinquent on their property taxes by waiving interest and penalties on unpaid taxes so long as the back taxes owed are paid by July 1, 2013.
The Republican-controlled Senate approved the measure 50-0. The Republican-controlled House must agree to Senate changes before the proposal can go to the governor."
Read more: http://www.nwitimes.com/news/local/govt-and-politics/counties-may-get-new-options-for-unpaid-property-taxes/article_9475eb60-ad07-50a7-b9f5-dc0e732fc0d2.html#ixzz1nPIvteQx
"Counties may be able to clear their backlogs of tax sale properties and get delinquent property owners back paying what they owe under legislation approved Tuesday by the Indiana Senate.
House Bill 1090 allows counties to adopt an ordinance reducing the minimum price for a tax sale property to 75 percent of the assessed value of the property.
Currently, tax sale purchasers must pay at least the total of back taxes, penalties, cost of the tax sale, the unpaid cost of prior tax sales and other county fees, which often exceeds the value of the property.
Allowing counties to accept 75 percent of the assessed value, or the current charges if they are lower, should get more parcels off the county's books and back on the tax rolls, said the sponsors, state Sen. Ed Charbonneau, R-Valparaiso, state Sen. Lonnie Randolph, D-East Chicago, and state Sen. Earline Rogers, D-Gary.
The legislation also allows counties to grant a one-time amnesty to property owners who are delinquent on their property taxes by waiving interest and penalties on unpaid taxes so long as the back taxes owed are paid by July 1, 2013.
The Republican-controlled Senate approved the measure 50-0. The Republican-controlled House must agree to Senate changes before the proposal can go to the governor."
Read more: http://www.nwitimes.com/news/local/govt-and-politics/counties-may-get-new-options-for-unpaid-property-taxes/article_9475eb60-ad07-50a7-b9f5-dc0e732fc0d2.html#ixzz1nPIvteQx
Thursday, February 23, 2012
Committee Strips Special Property Tax Increase for Clark County from SB 344
In the House Ways and Means committee, the special property tax increase that would have given Clark County approximately $500,000 a year in increased property tax revenue was stripped from SB 344:
http://www.courier-journal.com/article/20120222/NEWS02/302220115/
Section 34 of SB 344 as it was sent to the House read as follows:
SOURCE: ; (12)SB0344.2.34. --> SECTION 34. [EFFECTIVE JULY 1, 2012] (a) This SECTION applies to Clark County.
(b) The department of local government finance shall recalculate the 2013 maximum permissible ad valorem property tax levy under IC 6-1.1-18.5 for the county by using the 2007 maximum permissible ad valorem property tax levy for the county and then increasing the 2007 levy by applying the cumulative effect of using the assessed value growth quotient applicable to the county for 2008 through 2012.
(c) Notwithstanding the expiration of this SECTION, the 2013 maximum permissible ad valorem property tax levy for the county is to be used as the county's previous year maximum permissible ad valorem property tax levy for determinations under IC 6-1.1-18.5 after 2013.
(d) This SECTION expires January 1, 2015.
The committee report, linked below, merely inserts a new Section 34 in place of the Clark County property tax increase:
http://www.in.gov/legislative/bills/2012/PDF/HCRF/CR034402.001.pdf
http://www.courier-journal.com/article/20120222/NEWS02/302220115/
Section 34 of SB 344 as it was sent to the House read as follows:
SOURCE: ; (12)SB0344.2.34. --> SECTION 34. [EFFECTIVE JULY 1, 2012] (a) This SECTION applies to Clark County.
(b) The department of local government finance shall recalculate the 2013 maximum permissible ad valorem property tax levy under IC 6-1.1-18.5 for the county by using the 2007 maximum permissible ad valorem property tax levy for the county and then increasing the 2007 levy by applying the cumulative effect of using the assessed value growth quotient applicable to the county for 2008 through 2012.
(c) Notwithstanding the expiration of this SECTION, the 2013 maximum permissible ad valorem property tax levy for the county is to be used as the county's previous year maximum permissible ad valorem property tax levy for determinations under IC 6-1.1-18.5 after 2013.
(d) This SECTION expires January 1, 2015.
The committee report, linked below, merely inserts a new Section 34 in place of the Clark County property tax increase:
http://www.in.gov/legislative/bills/2012/PDF/HCRF/CR034402.001.pdf
Tuesday, February 14, 2012
Senate Bill Limiting Calument Township Spending Moves to the House
"A state senator attempting to give Griffith relief from Calumet Township taxes said Tuesday that he’s still trying to achieve that goal.
State Sen. Brandt Hershman, R-Buck Creek, said he feels the relationship between the two governments “is a deeply significant problem that needs to be addressed,” but admitted there’s probably a better way to deal with the issue than what current legislation provides.
The bill limits the amount Calumet Township can spend on providing assistance to its needy residents to four and a half times the state average or around $63 per person. The Indiana Senate already approved the bill and moved the legislation to the Indiana House for further review. A House committee heard testimony but did not vote on the bill Tuesday."
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