July 23, 2014 at 2:10 p.m.

Espich touts benefits of proposed law (12/19/05)

Letter to the editor

To the editor:

As we approach the 2006 legislative session, it seems that everyone is eager to jump into the fray to discuss property taxes. Whether it is to genuinely seek protection for Hoosier property taxpayers or to misguidedly seek a political advantage, the issue is already at the forefront of debate. Unfortunately, it seems there are those who will expend more energy on placing blame than responsibly seeking solutions.

As Chairman of the House Ways and Means Committee, I have scheduled hearings a full month before the session begins. I am hopeful these meetings will result in property tax relief for Hoosier taxpayers. The hearings will discuss HB1001-2006, which is a bill I authored to end the improper funding structure for child welfare services. Support services for needy children are a statewide responsibility and should be funded by state resources, not local property taxes. Additionally, we will begin the discussion on a long-term plan to address the imbalance of our current property tax system.

The goal of HB 1001 is for the state to take over all property tax levies for child welfare services. Local government will no longer have the financial responsibility to fund this program. This will in turn release the burden on the local property taxpayers' bills. If passed as proposed, this measure will help lower local property tax bills by an average of 5 percent statewide.

I invite all Hoosiers to follow the proceedings over the Internet at www.in.gov/legislative. To understand the property tax issue, citizens should be aware of the role of state and local government. State officials establish levy and tax rate controls and provide local property tax relief. In this biennium, the state is providing $2 billion in Property Tax Replacement Credits (PTRCs) each year — $52 million more than last year.

Levy increases are one area where we can address the problem of further property tax increases. Tax levies are set by the local government such as counties, townships, cities and towns, school corporations and other special districts and are based on their spending. Local spending is a factor that drives up property taxes, but a reduction in the spending growth at both the state and local level is a good beginning point to reduce property tax bills.

I look forward to working with all members of the House Ways and Means Committee and local leaders in a bipartisan fashion. We must work together to find solutions to reduce government spending and eliminate any further growth of property taxes. We can continue to move our state toward a more fiscally stable environment by providing tax relief now and work on a long-term plan to fix our property tax system.

Sincerely,

State Rep. Jeff Espich,

chairman, Ways and

Means Committee,

Indiana House of Representatives[[In-content Ad]]
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