INDIANAPOLIS | For most, it probably doesn't qualify as must-see TV.
But the Lake County Council's income tax showdown with state lawmakers will be broadcast live Monday, via the Internet. Watch the noon meeting online at
www.in.gov/legislative/session/video2.html.
This spring, the General Assembly handed Lake County what some legislators characterized as bitter but essential medicine. If the County Council doesn't impose a 1 percent income tax dedicated to property tax relief, most property tax levies in Lake County will be frozen at current levels, forcing cities, the county, townships and other local units to forfeit a combined $15 million in new revenue next year.
Most county and municipal leaders aren't pleased the Legislature took a father-knows-best approach with the only Indiana county that has yet to adopt a local income tax. Monday's meeting of the Commission on Tax and Financing Policy will give Lake County leaders a chance to explain why an income tax is the wrong remedy.
"It's more or less an opportunity to answer some questions and provide (lawmakers) with information that we feel is important, good information about how an income tax affects Lake County," said Lake County Councilman Larry Blanchard, R-Crown Point.
The council will present a study by the accounting firm Crowe Chizek, which backs up assertions that the state formula for distributing the $80 million generated by a 1 percent income tax would unfairly force suburban taxpayers to subsidize unchecked spending in East Chicago, Gary and Hammond. Several cities and towns have adopted resolutions denouncing the distribution scheme.
Blanchard said the council also plans to detail homespun property tax breaks already in place, including the 2 percent circuit breaker, a low-income credit funded by county casino revenues and similar programs instituted by East Chicago, Hammond and Whiting. County officials also will argue that an income tax would force taxpayers to shell out more for benefits already guaranteed through the circuit breaker, which caps bills at 2 percent of a property's assessed value, or $2,000 on a $100,000 home.
County Council President Elsie Franklin is expected to accompany Blanchard downstate, along with Lake County Board of Commissioners President Roosevelt Allen Jr., Councilwoman Christine Cid and Councilman Ernie Dillion.