INDIANAPOLIS | Indiana farmers joined the chorus clamoring for property tax reform Wednesday.
But, for them, it's an old dirge.
"It's kind of interesting to us that the rest of Indiana has now come to learn about the property tax problem that we've been talking about since 1931," said Indiana Farm Bureau President Don Villwock. "The property tax system is broke. ... And it needs to be fixed."
A number of factors, including a new assessment system and the elimination of the business inventory tax, are causing sharp spikes in annual tax bills, with state analysts predicting homeowners will face an average increase of 24 percent.
Speaking at the Indiana State Fair on Wednesday, Villwock and other Farm Bureau leaders stopped short of advocating the elimination of property taxes. Instead, they argued school funding and other government expenses should be lifted off the backs of property owners.
School construction and operating costs consumed 54 percent of the $5.7 billion in property taxes raised in Indiana last year. Under one scenario, lawmakers would need to boost the sales tax by a penny, to 7 percent, and raise the personal income tax from 3.4 percent to 5 percent to take schools off the property tax.
A legislative commission and a blue-ribbon panel appointed by the governor are exploring potential property tax solutions.
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