Walorski: Eliminate Property Taxes

by Nora Gathings (hsgathings@wsbt.com)

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Walorski: Eliminate Property Taxes

By Beth Boehne

(WSBT) There is an ongoing debate centered on what to do about property taxes.

In Elkhart County, payments are due Friday. People there and around the state have complained about the increase.

One state lawmaker says it is time to get rid of the tax completely. But others say that isn't the answer.

Representative Jackie Walorki's booth at the Elkhart County Fair is drawing a lot of attention and a lot of signatures.

“I'd like to see something done, something changed,” said Rachel Stahley.

Stahley says her property taxes increased almost 25 percent this year.

“It's just going to put a pinch on everything,” she said.

Like thousands of other property owners, she's signed the petition asking the state to reconsider the property tax.

“I don't mind paying it, but it can't go up that much, that fast,” she told WSBT News.

Other homeowners say they want it eliminated completely.

“Let us take it to our districts, and let people tell us what they want as far as a fair system of taxation,” said Rep. Jackie Walorski, R-Lakeville.

Walorski says only one out of four Hoosiers own property and the tax burden is falling on them.

“This is not unsolvable,” Walorski said. “It's a matter of political will.”

But Speaker B. Pat Bauer says her plan to eliminate the property tax is impossible.

“You would have to eliminate local schools and/or local government, local police and local fire,” he explained. “Or you would have to replace that property tax with another source of revenue, and the only two sources of revenue on the state level that raise any money are sales and income [taxes].”

Bauer says property taxes generate $6 billion. He says the property tax could be reduced by having the state pay for juvenile justice and welfare.

Walorski says that's not an option.

“You'll allow then XYZ local government to raise some other kind of tax to make up the income," Walorski told WSBT News. "And then what you’ll have in three years is politicians down there who want to spend more money.”

While many homeowners would like to see the tax go, others, like Stahley, say they realize it's money that's needed for things like schools.

Walorkski will present the petition to Governor Daniels and hopes to put the issue to a vote this January.

Some taxpayers will get property tax relief in December. That's when the state will refund taxpayers with surplus revenue raised from slot machines at horse racing tracks.

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