As the new year of state legislature begins, fixing property taxes seems to be on the front burner again. Having the state legislature fix the property tax problem is like having the foxes fix the fence around the hen house!</p><p>
Somehow when government sets out to fix something, it only gets more complicated and government gets bigger and more costly.
The governor’s plan of capping property taxes on your home at one percent of assessed value is only another Band-Aid approach.
As your assessed value goes up, your property tax will also increase. The money they cut from property tax will also continue to increase. </p><p>
The only and final way to fix the problem is this:
1. Do away with any and all property tax. It is never right to penalize someone because they worked hard to own something.
2. Go to a simple sales tax that would be spread across every household in the state. </p><p>
3. Cap school spending. Nearly 60 percent of property taxes collected is spent on public schools. A large part is spent on sports and play time, not education.</p><p>
4. Cap state and local government. Nearly 30 percent of property taxes is spent on government and welfare. </p><p>
There are some real benefits to going with a sales tax. In our country alone, $30 million is taken from property owners in the form of property taxes. That’s $30 million that would otherwise be spent on other things. I don’t know any county that couldn’t use a $30 million boost to the local economy. </p><p>
Sales taxes are collected when people buy things. With a sales tax, there is no additional cost of collecting, administering or assessing someone’s property. In Daviess County, nearly $600,000 is spent every year to collect, administer and assess property taxes. </p><p>
Now multiply this in every county in the state. The governor and legislators travel the world over to bring economic development to Indiana. No foreign company (most of them have tax abatement) is going to match the economic boost that doing away with property taxes would create. There is a carrot coming in the form of a property tax rebate. Don’t be fooled again. </p><p>
The government doesn’t have any money; it’s all taxpayer’s money. When the government gives money back to you, it’s your money they’re giving back. </p><p>
The Chamber of Commerce and public school lobby is rich and powerful. They will lobby long and hard against doing away with property taxes. Remember your vote is powerful, too.
Let the governor and legislature know you’re tired of being taxed unfairly. Oh, and have a very Merry Christmas!