From the Terre Haute Tribune Star:
Vigo County could see a more than $3.2-million reduction in revenue for its general fund if the Indiana General Assembly eliminates the business personal property tax.
Some legislators have indicated their intention to do just that when the next session takes up in January. They will have the backing of Republican Gov. Mike Pence, who reiterated to media on Friday his desire to phase out the tax.
While state leaders say they would seek substitute funding to replace revenues for local governments, few specifics have emerged, something that worries local officials.
“Eventually, this means a reduction in services, which is the only place to cut. That means public safety and county employees,” said Vigo County Auditor Tim Seprodi in response to the “what if the tax goes away” scenario. “We would have to reduce the workforce. There are only so many places that you can cut pencils and paper …”
Republicans say the plan to reduce or eliminate the tax is meant to help attract new business investment in Indiana. Local officials from around the state have been vocal in their opposition to the proposal, contending the fiscal impact to schools, libraries and local government would be disastrous.
For Vigo County, elimination of the tax money would equate to a 10-15 percent reduction in workers, including fewer correctional officers at the county jail, Seprodi said. Vigo County road deputies are funded from the County Adjusted Gross Income Tax and would not be affected.
Not the case for the town of West Terre Haute.
“What would take the biggest hit is the police department, which makes up three-quarters of our general fund,” said Scott McClain, president of the town board.
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http://www.tribstar.com/local/x1186885707/Loss-of-biz-tax-could-cost-Vigo-3-2M-annually
