From the Indianapolis Star:
A bipartisan Marion County study commission tonight recommended phasing out the homestead property tax credit over two years, a move that could increase taxes slightly for most homeowners.
The 6-4 vote indicated a split, with some Local Homestead Credit Review Commission members wanting to keep the credit. There also was a question about whether to count the vote of City-County Council member Marilyn Pfisterer, who supported phasing out the credit as a proxy for fellow Republican council member Jack Sandlin. Commission rules require six votes to make a recommendation, so it might not stand without her vote.
The recommendation goes to the council, which created the commission as part of a bipartisan budget agreement with Mayor Greg Ballard.
Other commission recommendations could help budget-cutting efforts. Among them were more study of possible increases to the local income tax rate to boost public safety funding and help other government units that the homestead credit’s elimination would harm indirectly.
If the council eliminates the homestead tax credit, city consultants estimate, about 25 percent of homeowners would see no change in their property tax bills.
Bills for 80 percent of the rest would rise by $30 or less.
The credit relies on a portion of income taxes that is diverted to reduce property tax bills. It is separate from the homestead deduction, which isn’t at risk.
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http://www.indystar.com/apps/pbcs.dll/article?AID=2013306240103
