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Dear Editor:
It is no secret that Hamilton County homeowners were hit hard with higher property tax bills in 2023. Those particularly vulnerable were our retired citizens on a fixed income. It was my hope that the state legislature would provide some additional relief during its last session, but there was not significant change.
The tax system is controlled by the Indiana Code. Local governments do not have home rule authority relative to taxation.
After hearing from concerned citizens, I have proposed an idea to provide some property tax relief, based on the only solution available to local government. The Indiana Code allows for a Local Income Tax (LIT) that can be targeted to reduce property tax bills as an additional homestead credit. All decisions regarding LIT rate must go through the LIT Council, which consists of the Hamilton County Council and all the cities and towns within the county.
At our Aug. 2 County Council meeting, I proposed, and the council approved, the idea of adopting one tenth of a percent (0.1) LIT for additional property tax relief for those with a qualified homestead. This increase will be offset by the state’s scheduled income tax decrease of one tenth of a percent (0.1) effective January 2024. This additional LIT would be applied to the 2024 property tax bills.
The state is cutting income tax by 0.25 percent over the next four years, reducing it from its current level of 3.15 percent in 2023 to 2.90 percent by 2027. My proposal would increase the county income tax rate (LIT) by identical amounts, keeping the total income tax rate (state and local) the same as 2023. This would create roughly $53 million in today’s dollars that could be used for property tax relief to qualified homeowners within the county. This LIT would provide approximately 12.7 percent in property tax relief for a qualified homestead (those under the circuit breaker cap).
The next step is for the cities and towns to review and discuss the proposed plan. It takes a majority of the LIT Council to make any changes to the current LIT rate. I have offered to attend the various city council meetings throughout the county to facilitate discussions on the proposed solution.
Is this the perfect solution? No. However, I believe it is the best solution currently available to provide some much-needed relief to homeowners who have seen their property taxes increase significantly in recent years.
Brad Beaver
Hamilton County Councilmember