County officials: State tax overhaul leaves murky future
GOSHEN — Questions abound over what effects the state's property tax overhaul will have on Elkhart County, but county officials believe that none of them will be good.
Members of the county council and the board of commissioners on Thursday voiced frustration and disappointment with the 350-page tax overhaul signed into law this week by Indiana Gov. Mike Braun.
Senate Bill 1 promises to lower the homestead property tax bills of two-thirds of Hoosier homeowners starting next year compared to this year.
The package offers a tax credit of 10 percent or a maximum of $300 to every homestead. Additional tax credits are then awarded to seniors, veterans, the disabled and the blind.
But Elkhart County Commissioner Suzie Weirick sees the state legislature's actions as an 'attack' on local government as funding to local governments will be affected.
'Obviously, we're at the end of the legislative session. This session has been 'interesting,' is one word to use,' she told council. 'There has been an overt attack on local governments, and whether or not we are included in that, it seems very personal to me and I've heard several others say the same thing.'
She pointed to not only the tax overhaul but also the state budget bill and restraints on the Health First Indiana program as casting Elkhart County's financial future in doubt. Weirick thanked the council, which is responsible for the county's spending, for setting Elkhart up to weather changes in the short-term.
'I do think that we are going to have some challenges in front of us, and I look forward to working with you guys. I know, as commissioners, we're still trying to figure out how this is going to impact what we've got going on. We had some legislation today that went through that's going to impact us further financially,' she said. 'But I think I would speak for all of us when I say thank you, because over the years you have set us up in a position to deal with this in the short-term. This is a short-term solution, using some of our rainy day funds to get through this, but I do think that we need to look forward and take the opportunity to influence some future policy.'
Some council members remarked on the murky nature of a sweeping law like Senate Bill 1.
'It got up to 350 pages and I have not talked to a single state legislator, whether it's a representative or senator, that can tell me everything that is in it,' Councilman Adam Bujalski said. 'They don't know. They signed it, they went forward with it.'
He said it's clear that nobody will be happy with the bill once its effects are fully understood. It held a few unpleasant surprises for those who dug through it, such as a cap on the taxes that newly established fire territories can collect which will likely torpedo plans like those in the works in Madison County.
Bujalski said it will take time for Elkhart County leaders to understand the impacts of the bill before it goes into effect. He urged people to read Senate Bill 1 for themselves rather than take anyone's word for what's in it.
'It's going to take time, I have started to read it. Nobody knows what's going to happen, and I don't think any side of the aisle, whether you're against property taxes or you're not, is going to be happy because it didn't really do much at all,' he said. 'They added a lot of stuff. I'm a fan of clean bills, I like whatever's actually on the front page to be inside the bill, that is not the case with SB1... There's going to be a lot of changes drastically: statewide, local, townships, libraries, and nobody does know what's going to happen right now.'
Councilman Steven Clark said he's around 200 pages into the bill. He was struck by the burdens placed on local governments which don't apply to the state.
'What I find comical is the amount of things that are put on us that are not done by the state. So for example, 'We want you to vote on the same tax every year.' Great, why don't you do that on the sales tax as well, or the income tax, which is how it's recommended after 2030,' he said. 'I'm all about transparency. Just be willing to do the exact same things you're asking locals to do and stop taking power away from local municipalities.'
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