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Property Tax News Archive SCHOOL BOARD MEMBER CITES LOOPHOLE IN NEW TAX LEGISLATION 
Greg Wright with Indpls. Mayor Greg Ballard
Washington Township Elected School Board Member, Greg Wright, writes his personal reaction to HEA 1001 Tax Relief law signed by Governor Daniels on 3-19. The position of the Repeal Alliance for genuine reform is to pass sound legislation that becomes law. Swiss cheese or loop hole law may be politically expedient but not sound law. This is what happens when the word ‘compromise’ was repeated even to the day of its signing.
“There are several basic structural problems with Indiana ’s public education that attributes to the system’s insensitive to taxpayers. Here are three:
1. School boards rarely reflect the demographics of the voters;
2. School district bureaucracy is similar to the ‘Soviet’ system…and is just as efficient; and
3. The superintendent is the district Tsar.
Since Superintendents have little opportunity to increase their operating budgets, they systematically loot the maintenance accounts and launder the funds into the operation budget.
This results in what economists describe as a ‘liquidation of capitol assets.’ In simple terms, they simply quit maintaining the building, roofs, or furnaces. When the lack of repairs becomes obvious, they borrow money by selling bonds. This immediately causes an increase in property taxes to generate the funds required to payback bond interest and principal. It’s like the private citizens’ not having enough money to maintain a lifestyle they desire, and then to borrow using their credit card to pay the electric bill, go on vacation or build a swimming pool.
The school districts also used their authority to sell bonds to build $14 million swimming pools for 80 swim-team members, build $70 million sports stadiums, and multi-million dollar auditoriums. State regulators’ obstacles are generally impotent. The remonstration process is so difficult that it is rare that a taxpayer group is successful
This current legislature was asked to fix this mess by passing two measures directly affecting schools:
1. Move school board elections to the fall general election so that voter turn-out might increase and the taxpayers might be better represented.
2. Require referendums on capitol projects so that they would be forced to justify the construction project to the general public.
There was fierce opposition from the special interests against these measures. These special interests included the school board associations, the superintendents Associations, and the teachers’ unions.
The bill to move school board elections was blocked by the House and never saw a floor vote. The referendum matter was watered down so that referendums would only be required if the project exceeded $10 million for elementary schools and $20 million for High schools. Obviously, this will result in projects that will be broken up and done in pieces.
For example, in Washington Township , the Superintendent has proposed to renovate practically every elementary and middle school building in the district at a cost of $150 to $200 million. That project would never, never survive a referendum. But if you “launder” each project by packaging it into smaller pieces, you can accomplish the Superintendent’s goal and keep below the cap for a referendum.
All any school district has to do is seek approval for separate projects and they can dance the limbo under the limit. As long as the current cumbersome remonstrance process remains in place, it is not realistic to see any of the projects challenged.
The special interests win again. This wasteful game will continue. Taxpayers can only be saved by voting on May 6th for school board members that will represent their interests.
(posted 3-25-08)  DID INDIANA LAWMAKERS SKUNK HOOSIERS?
Democrat Senator Lindel Hume from Princeton, Indiana is quoted by the Indianapolis Star in referring to the recently passed legislation awaiting the Governor’s signature as calling this a “’skunk‘ all gussied up with some deodorant.”
Further, “I’m sorry, but this is not true, lasting, substantial property tax relief.”
He is not alone in his evaluation of this bill. Those arguing for property tax repeal maintain that every other solution tried in Indiana’s past ultimately failed because of unrestrained spending by unchecked taxing units and the propensity to carte blanche endorse budgets with little oversight and accompanied failure for accountability, which itself was buried into the netherworld of non transparency.
While one may take some guarded optimism of initial legislative reform, particularly the realignment of responsibilities, the question remains why Sen. Hume and many activists
see an animal prone to stick up place. Until the final legislation’s language is revealed and digested, the initial gleanings extracted from the media which leaped into self euphoria, should be tempered with a reality check that we are not there yet, and may in fact be on the wrong path. Many refuse to be dissuaded by the Governor’s friendly remarks of credit he gives to homeowner-activists who raised their voices and ’carried the day.’ The pros and cons will not be debated in this early stage, but we wanted to share some initial responses that don’t bode well for genuine relief.
Should you wish to have your comments considered as part of this discussion, you may email paul@patriotpaul.com
3/11/08: Activists Descend on Statehouse
Reassessment Problems - Again!
A Report from Patriot Paul Governor Daniels talked freely to concerned Indiana residents assembled outside his office today. Seemingly pleased with the turnout of over 100 people who wished him well on his efforts to reform our way of governing and reduce oppressive property taxes, he took time to talk individually about the closing days of the assembly’s session.
While he wanted support for his property tax cap proposal, many there wanted the final step of elimination. My direct question to him was “Are you in favor of property tax repeal”. He reiterated that his heart was for that and it is a worthy goal, but that the proposals currently under consideration, if passed, would offer immediate relief.
Among the activists was a 4 member delegation from Team Hammond, one of northern Indiana ’s Repeal Alliance members, who finally met Chris Hiatt, President of the Citizens of Delaware County for Property Tax Repeal, who helped lead a busload of 50 from Muncie , Indiana . Over 50 Metropolitan Indianapolis Board of Realtors (MIBOR), including Government Affairs Director, Chris Pryor, made their voice known that the nearly 4 Billion $ underassessment of commercial and industrial property that created inflated residential property taxes has made it unbelievably hard for Realtors to sell property in a declining market. They further call for the elimination of county assessors, especially Marion County , in favor of 1 competent County assessor.
Also in attendance was Penny Bigelow, President of Citizens for Education, who shared her concerned with Daniels for spending to be applied to the classroom taking precedence over building projects.
Joanna Franklin, President of Fox Hill Association and Secretary of Crooked Creek Community Council, also wants tax money applied to academics ahead of buildings.
Also in attendance was Eric Miller who also gathered supporters for permanent reform of how we are governed and for property tax repeal.
Of particular buzz was the recent news from Indy Radio Talk Show host Abdul regarding the recent Reassessment results. There is genuinely shocking news that the DLGF reportedly certified inaccurate and some claim ‘fraudulent’ reassessments produced by the company assigned the task. Remember the nearly 4 Billion underassessment revelations on commercial and industrial property that led us to believe the residents paid the difference and therefore that accounts for jacked up residential property tax bills? Well, it’s now being claimed that the reassessment company counted churches, non-profits, hospitals and even farming land (redefined as business or commercial?) that inflated this to the 4 billion $ figure, and further if that the State office, DLGF, CERTIFIED AGAIN (I repeat, AGAIN) inaccurate (to say the least) results that only seemed to justify their original argument that commercial property was under assessed. This has the legs of a centipede and is about to hit the airwaves, so look out for the finger pointing and the cover-up. Is it true that a freedom of information request had to be filed just to get the evidence? Something is very, very wrong in downtown Indy. Just when lawmakers thought they could posture their way through one last week with a band-aid of reform and go home and hope to survive past a November election until their work starts next January 1st, this bombshell simply shows how broken the system continues to be and that transparency in government is a rare commodity. The assessors are fighting back and they have the evidence. March 2008: An Assessment (yikes!) of the 2008 Legislative Session Thus Far... Everything the legislature has been doing, is SSDD (same stuff, different day). It is the same as 1973, 1982 and 2002. A temporary shift; of a small amount of property tax, to sales and income (COIT), then the property tax rockets up again, in a year or two.
If they amend the constitution to make property tax caps permanent, you'll be in the same boat again. But, this time their mark-up on the paddles they sell you will be much higher.
There will be NO change until property taxes are repealed and replaced with other sources. The only thing we can be assured of, is a repetition of the same, grim history.
The assessors are already allowed to assess at 10% higher than the purchase/market price. They have already cherry-picked the years and, properties (they toss out distressed & foreclosed properties) that their assessments are based on. (Clue: Not slump years) Rest assured, they will increase the assessment to meet the levy.
There will be a smaller tax base as distressed, foreclosed and abandoned properties increase in number. The survivors, with inflated assessment values, can be assured that the money WILL be gotten from somewhere--from them.
Then, let’s talk about the COIT. YES THEY WILL INCREASE YOUR INCOME TAX! The Governor says he will not increase the income tax. They already have raised the COIT in Marion and, other counties. (former Indianapolis Mayor Bart Peterson lobbied hard for that).
Now let’s talk sales tax. That's going up 1% too. It is a done deal. That is a 17% increase over the existing sales tax!
If they strip Article 10, Section 1 from the constitution, they can raise your taxes to run you off--so they can find a more lucrative tenant. An insidious form of eminent domain…
Despite the provisions to the contrary under Article 8, Section 2, the State has been collecting the school portion from homeowners, for a long time.
Q: How does a legislature avoid breaking the law?
A: They change it.
It's called "ex post facto" and, that's against the law too.
So; in the end, we have an increase in assessed value, an increase in income tax and, an increase in sales tax.
When the session finally ends, the General Assembly will start singing their tune about the "Largest tax cut in Indiana history" but, it IS NOT and, WILL NOT be! There is still the problem of $22 Billion in unpaid bond debt. This, my friends, is a net tax increase. And that is neither a cut, nor a cap, it's a SHIFT!
Do YOUR part everyone! Don't look for an R, D or L. Find out what the candidates are really saying and, vote accordingly. January 2008
Dear Fellow Hoosiers
The state of our state is CRISIS! This week is it! We have an opportunity to win the repeal of property taxes in this legislature (SJR8) and establish Indiana as the economic sunshine state. Please join your fellow Hoosiers for the Governor's State of The State Address (begins at 7PM & expected to be 30 minutes long). Bring your families and share with them, history in the making.
You've relied upon this website and others, for updates on the property tax crisis. As you read this, be assured that friends in the legislature have made it perfectly clear, that, public presence on Tuesday will make all the difference, and bolster the confidence of legislators to do what is right (open discussion and vote on the floor of both houses, of repeal). For better or worse, history is made by those who are present. One group that's been missing from the public debate and therefore consideration, isn't a lobby or special interest group. It's a "general interest group" of citizens, who call themselves Hoosiers, who have been missing for far too long.
This is one of "those moments" in history, a destinational crossroads that will be viewed retrospectively; from either a vibrant altitude of possibility, or a condescensive platitude of the status quo (can't do attitude). That very decision, concerning the destination of our state, will be charted this week. Please come on Tuesday and show yourselves to be the people they've forgotten.
Can't Do Never Did
Legislators tell us they saw the "perfect storm" coming, which apparently didn't compel them to take evasive action. Now, they can't see "exactly" how repeal and replacement will work, so they don't want to take any action on that either. There's a pattern here.
These same Republi-Can'ts and Demo-Can'ts have one thing in common, they're defined by what they can't do. Add now to their "can't do list," any open discussion of property tax repeal. What happened to the open minded agents of change whom we elected?
Some practice an inane form of political yoga, to make voters believe that they "would" consider or vote for repeal, if only the others (i.e. "leadership," graveyard committees, etc.) would let them. "If the people around me would permit it, I would sincerely be and act like myself," they seem to say. Others take the electioneered "heat" for the pretense of that which they call "practical" (the grand mediocrity of lesser evils), making the "hard" decision to say "can't." Political cover is another expression for "citizen compromised."
View now the spectacle that is the current process, a "call to inaction." Keep a sharp eye. The Senate Rules Committee may hold SJR8 indefinitely to effectively kill it, after adopting a not so popular bill like SB0012 and pieces thereto, or butcher it by amendment (diluting it beyond purpose); any or all to sync with the Governor's state of the union speech- expost speecho. And, then there's the leggo-your-ego problem that keeps good ideas, on the party or personal basis of aversion to authorship, from reaching the floor of either house for an open discussion. There are countless hours of higher education and experience within the state house ranks, and what citizens get is a process that does not reflect that fact. Ain't we lucky to have such a process?
What are Republi-can'ts and Demo-Can'ts afraid of? All evidence points toward the questionable funding (bond indebtedness of an indentured citizenry, the many) of unnecessary public facilities projects (schools, libraries, misc., the excuse); contracted to niche developers, and the paper creations of niche law and investment firms (the few who benefit directly), in an environment of citizen and therefore student depopulation (read customers). It's not that the memo from the future is unclear (it's not hieroglyphics fellow Hoosiers), it's a matter of readership by leadership. Failure to respond to a problem with a proportional solution, is still failure. The only solution, proportional to Indiana's property tax crisis, is complete elimination of the property tax, and that evidence is available to those with the will (the "can") to make good policy.
Citizens are employers who don't need committee filters on what their options are (re: state's collection of their money); particularly at a time, when forty plus, or nearly half the counties, don't have recent tax bills. Members of both houses say that they believe a bill for repeal would pass, on an up or down vote, if brought to the floor of either house. What's the purpose of leadership if not to do the people's bidding? If legislators are to be representatives, they must have the courage of their convictions, and expose them to the light of public process. Anything short of full engagement, is an irresponsible gamble on the future of Indiana; a losing game of cowar-dice.
America's competition for citizens is on! In a nation where depopulation is a fact; the future will reward states where policies are transparent, and citizen friendly (centered), because people will choose to live in those places (what a concept). States that fail citizens, in favor of special interests and self-serving government, will also fail economically- it's that simple. States will have less revenue with which to do anything credible or purposeful (vacated infrastructure is expensive, ask Detroit, St. Louis, etc.), much less back-room development deals. And, more taxes on fewer people, fuels exodus to "other" states (hint: it's been tried), where reapportionment will add congressional seats, and subtract them from "failed states."
See citizens as customers or any category of human division, by which special interests predispose you, but people generally flock to places where they are WELCOMED (it's a honey and vinegar thing). Foreign investors have likewise returned to Indiana during the past few years, because they have been INVITED (leadership). Unfortunately, recent gains in Indiana's employment and investment are being erased, by confiscatory property taxes that outpace income growth and citizens' resources; which along with the history and increasing awareness, explain Hoosiers' preference for repeal. Rather than waiting to read post election polls, legislators would do well to read current polls on citizen sentiment and repeal. Bold change will require genuine introspection by our currently elected officials; many of whom have an artificial (token or template), exaggerated sense, of their connectedness with constituents; hence the "perfect storm."
To good works and better times,
The Indiana Property Tax Repeal Alliance |
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