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Read comments (8)Bloomfield School Superintendent Dan Sichting on Friday described the reform plan as a "shift in taxes."
"It's a shift in taxes. You're not paying less taxes. It's a shift," he added.
House Bill 1001 places caps on property tax that homeowners, rental property, business and farm owners pay, he noted.
* The maximum amount that a homeowner will pay is 1 percent of assessed valuation.
* The maximum amount that a rental property owner will pay is 2 percent of assessed valuation.
* The maximum amount that a farm and business owner will pay is 3 percent of assessed valuation.
"Because of those caps your assessed valuation really determines the amount of property tax revenue you generate for the following funds: Debts service, capital projects, transportation, bus replacement and retirement severance bond payments," Sichting explained.
The state has assumed control of the general fund and special education fund, he added. They will provide revenue to support those two funds.
According to the Legislative Services Agency:
* In 2009, Bloomfield School District will lose $13,057.
* In 2009, Linton-Stockton School District will lose $85,711.
* In 2009, Eastern Greene School District will lose $4,137.
But the losses are much greater the next year, according to Sichting.
* In 2010, Bloomfield School District will lose $110,924.
* In 2010, Linton-Stockton School District will lose $241,408.
* In 2010, Eastern Greene School District will lose $70,805
But the legislature set up a fund to offset some of the losses.
Sichting explained, "What the legislature did is set up a fund of $75 million to lessen impact of the circuit breaker in 2009-10."
In 2009, Bloomfield School District would not receive any of that fund because its losses are not 5 percent of the levy, he explained.
"But in 2010 because we lost $110, 924 we would receive some money of that fund," Sichting explained. "The net loss in 2010 would be reduced to $60,115."
In 2010, the Bloomfield High School will be paid off and $300,000 will go off the tax rolls, he said.
"So this isn't going to hurt the Bloomfield school District as much," he added.
But the current elementary renovation will add $447,000 to the tax rolls, he noted.
House Bill 1001 also gives counties the authority to raise the local option income tax by .5 percent, Sichting said.
This increase would also offset the total revenue loss, he added.
According to Legislative Services Agency in 2009, if Greene County adopted the local option income tax increase the revenue loss would be:
* $381 at the Bloomfield School District
* $16,983 at Linton-Stockton School District
* Zero at Eastern Greene School District
Without increasing the local option income tax, Greene County will lose over $1 million in 2010, Sichting noted.
That's a substantial loss among all taxing units in 2010, he said.
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What about the free trade policies Mitch supported where we lost all our industries that paid the property tax. Now that they are gone the burden falls on the little guy.
Be prepared for the fall campaign. Mitch will tell us we never have had it so good!!!
Then see what he does for us in the second term when he can't run again and has nothing to lose.
You ain't seen nothing yet.
Ken,
I told you this would happen. For the first half of his time in office Mitch was the Satan of the middle class; now he is the great savior of the middle class. This is not about anything but being re-elected.
I am 100% with America on this part -
"You can choose if you are going to pay a sales tax just do not buy something.
Property tax is immoral. Unless you want to tell people to just not own property then homeowners are forced, at gunpoint, to pay for services that everyone is getting. (If you do not believe it is at gunpoint then dont pay the tax and refuse to leave your land and see who shows up to remove you.)"
As for the Mitch haters, It's pretty apparent either you don't work or are in a union. At least Mitch tried to do something for this state which is more than anyone can say for Obannon who sat on his behind for eight years while Indiana sank lower and lower.
Taxes pay for the "free" services so many people have come to expect, decent roads, good schools, free libraries, care for the indigent.... the system basically takes from those that "have" to provide a standard for everyone. There is rarely such a thing as a tax cut....."shift" is exactly what happens. How often in the home budget does one quit paying a bill and the service is still provided...somehow people seem to expect governments to provide services without charging, it can't be done. Now the issue is will our local officials be willing to face the local residents, and raise the County Option Tax? We see how this bill may affect schools, I would like to know the impact on county services.
Since when is Sichting a tax expert?
Just wait until you pay the sale's tax on a car or other big ticket items and see how much you really "saved". Mitch really put one over on us. Please continue hitting me in the head with a hammer, it feels so good when it stops!
Thanks goodness, we elected My Man Mitch and his cronies such as Elvis. We will be headed to one County-wide school system. Thanks to the Gov.
It's not a shift, it's an increase. The property taxes won't go down until 2010, supposedly. The sales tax increase is almost immediate - Effective April 1st!