More Legislative Affairs...Property Tax Reduction, Assessment Reform, Elimination of Township Assessment!

On the Indiana Front, the position of the Indiana Assocation of Realtors is defined in the following talking point from our fearless leader, Karl Berron.

The time has come to fundamentally change the way we approach property tax relief. In the past, the strategy has been to raise state taxes and use that money to subsidize property tax bills, or to grant deductions to favored classes of taxpayers. This model cannot be sustained.

Property Tax Reduction

The time has come to allow local units of government to utilize other sources of revenue. This does not mean they can be given a blank check. REALTORS support alternative forms of revenue to replace property taxes under the following circumstances.

The bulk of the new money raised should be used for property tax relief, not new spending.

To help control remaining property taxes, "tax adjustment boards" should be established. These boards would be charged with determining priorities among the many local units of government that can levy property taxes, yet now operate independently.

The 2% circuit breaker is maintained. It is not logical for local government to argue for new sources of revenue on one hand, while not accepting limits on property taxes on the other.

When possible, entire levies should be eliminated, preventing them from growing back.

Property Tax Assessment Reform-Elimination of Township Assessment

Indiana's assessment system continues to treat taxpayers unfairly. The state's failure to reform this antiquated system results in too many taxpayers paying more than their fair share of the tax burden.

For literally decades, studies have recommended moving away from township based assessing. This system, based on 1008 individual approaches to determining value, makes uniform assessments imposible. For this reason, REALTORS support the elimination of township assessment. Responsibility for assessing should be moved to the county level.

Too often, this critical issue gets lost in the maze of other property tax reform discussions. Yet in many ways this is the fundamental change that would form the basis for a modern property tax system. Failing to make this change means many taxpayers will continue to pay more than their fair share.

If you agree, contact your legislators and tell them so!