INDIANAPOLIS | Counties should immediately impose local income taxes dedicated to easing soaring property tax bills, Republican Gov. Mitch Daniels and top legislative leaders said Tuesday in a joint statement.
Daniels, Democratic House Speaker Pat Bauer and Republican Senate President David Long say they have yet to reach consensus on a more expansive property tax relief plan lawmakers might consider in a special legislative session. But they insist local officials act now.
"Local government has been given an unprecedented opportunity to cut property taxes in record amounts, and it must act today," the state leaders said in a written statement. "Counties have until Oct. 1 to implement these property tax cuts. We are encouraging all Hoosier citizens to contact their city and county councils and urge them to begin the process to cut their property taxes now."
Lake County has an added incentive. State legislation approved this spring forces cities, libraries, townships and other taxing units in Lake to forfeit a combined $15 million in new tax revenue next year if a 1 percent income tax is not in place by Oct. 1.
Most Lake County leaders have resisted the mandate, complaining the state formula for distributing the $80 million in income tax proceeds would force suburban taxpayers to subsidize unchecked spending in East Chicago, Gary and Hammond.
Porter County leaders also have rejected calls for another income tax. The county already charges a 0.50 percent income tax dedicated to economic development and tax relief.
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