County officials support property tax shift

County officials around the state of Indiana are supportive of a legislative measure to move local spending for welfare, court operations and schools from property taxes to the state.

The Association of Indiana Counties hosted work sessions on Wednesday that included a meeting with representatives from the Blue Ribbon Commission on taxes and Ryan Kitchell, director of the Office of Management and Budget, and John Eckert, commissioner of the Indiana Department of Revenue.

Howard County Treasurer Martha Lake and Dick Miller, president of the Howard County Council attended the sessions with state officials.

Lake said the AIC is working on three recommendations to make to lawmakers when the 2008 session of the Indiana General Assembly convenes in January.

"There is a lot of support to take the judiciary, welfare and school general fund tax rates off local property taxes," she said.

In Howard County the five school systems receive approximately 70 percent of all property taxes collected.

Miller said there is a lot of support to shift those three areas from property taxes, but he cautioned that the state will have to increase its revenues through an increase in another tax.

"The courts should be totally under the state," Miller said. "The court establishes the number of probation officers and their pay rate. That money would have to come from another source."

Miller described the sessions as fact-finding and background for the state officials.

"I was impressed that they were willing to talk to people directly involved," he said.

Lake said there was a lot of discussion with the Department of Revenue about record keeping, accuracy and trust between local units of government and the state.

"The state is still trying to figure out a way to reconcile how taxpayer's money is being handled," Lake said. "There was some discussion about having the local option income tax money coming directly to the county instead of flowing through the state."

Lake said it would be a huge transition to have local income tax dollars made directly to the counties.

The Department of Revenue is behind and certifications of anticipated tax revenues each county will receive for 2008 was supposed to have been mailed by Aug. 1.

She said if Howard County approves a .5 percent Local Option Income Tax to be used directly for property tax relief by the end of the year the first checks should be received early next year.

The hope is that the county will receive a check on a monthly basis, Lake said. The county is still awaiting a certification on the dollar figures from the .2 percent special County Option Income Tax approved earlier this year to help offset operating costs for the Howard County jail and Kinsey Youth Center.

"I think they were listening," Lake said. "There is better communication between the statehouse and the courthouse."

Miller said the Department of Revenue is working to put the tax numbers together.

"They're doing what they can with the personnel they have," he said. "There are difficulties with the accounting procedures for income taxes."