Gov. Mike Braun sent a message Tuesday to local leaders who say his property tax proposal would decimate their budgets: “Prove it.”
Braun hosted citizens in his office to highlight the need for relief.
Franklin resident Mark Gross said his property taxes have increased about $200 a month over the last decade. He said he’s frustrated that local governments don’t seem to need the same fiscal discipline he has to use.
“County taxes — I guess is what we’re really looking at — has a blank check, so to speak, to just keep saying, ‘We need more money, we need more money,’” Gross said.
Local leaders, like Carmel Mayor Sue Finkam, told lawmakers that communities have used growing property tax revenues to meet rising costs.
“For example, since 2020, the cost to repave a mile of road has surged 43 percent and emergency medical response costs have jumped 33 percent,” Finkam said. “Both of these figures exclude rising personnel costs.”
READ MORE: As lawmakers eye tax reform, schools worry about cuts to funding
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Braun said local governments need to run more efficiently.
“Prove it that you didn’t salt away a lot, that you didn’t overburden the taxpayer,” he said.
Braun’s plan would cost local governments — not including schools — more than half a billion dollars a year statewide. Local leaders like Terre Haute Mayor Brandon Sakbun said there’s no way to avoid cuts to public safety.
“Police and fire salaries are 82 percent of our general fund,” Sakbun said.
But some Republican lawmakers say local governments need to “ruthlessly” cut.
Sen. Tyler Johnson (R-Leo) said it’s local governments that are in part to blame for why lawmakers are exploring significant property tax cuts.
“You could’ve helped your constituents by not having these huge growths in their tax bills,” Johnson said.
An initial committee vote on major property tax legislation, SB 1, is expected next week.
Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5 .
