The beat goes on - and gets worse
Just about a month ago, we wrote on the continuing clamor for "mass transportation" - meaning quick service for our Hamilton County friends to get downtown. Now we have the introduction of an outrageous piece of legislation in the General Assembly.
We refer to Senate Bill 479 which would allow the establishment of "Regional Transportation Districts" (RTDs). While advocates of slimming down government in the state are hard at work, this would be a new layer at county or multi-county level.
The RTD would be operated by an appointed board which would have the power to raise funds from: property taxes from an "allocation area" within the district; a special property tax; a food and beverage tax; a "green tax" of $10 per automobile registration; and a county economic development income tax. Plus, naturally, any free federal funds lying around. This is NOT an "either / or" list of options.
For the unwary, we would point out that taxes from an "allocation area" would constitute a Tax Increment Financing (TIF) scheme for residential property. A decision would be made, presumably by this non-elected board, that residents would benefit from the presence of rapid transit, thereby increasing the value of their homes. We find no limitation of the size of the "allocation area" and one might assume that if you live closer to the train station than to Monument Circle, you are a beneficiary and your residence would then be reassessed.
Need we remind our readers what happens to tax "caps" set as a percentage of assessments?
Another little sweetener is the provision that any amount collected from their County Economic Development Income Tax "...may not be considered by the department of local government finance in determining the county's maximum permissible property tax levy under IC 6-1.1-18.5."
Since retirement we've gotten somewhat out of touch, and, quite frankly, we're not aware of what effect revenues from that income tax have on property tax limitations. But we do feel fairly certain that excluding those revenues from any computation will not bode well for the taxpayer - of either tax.
And just as an aside, do we really want to write into law a completely indeterminate term such as a "green tax?" If we must use a color, how about "blue" as representing the feelings of taxpayers?
From Indy Tax Dollars