Property Taxes and Politicians

Isn't it wonderful when voters awake from their eternal slumber when you hit them in their wallets? When the Governor spoke today, he did what everyone wanted to hear by ordering a reassessment of property taxes. Now, we need to see if the rest of the legislature can truly come up with a permanent solution to the unfair property tax system we have in the State of Indiana.

However, before we can sit back and relax, let me drop a few facts on you. The City of Indianapolis has some serious bills to pay that are seriously overdue. This isn't a complete list and the numbers may be a little off like Patrick Bauer's toupe', but here is a list of the money we, the taxpayers, owe.

-RCA Dome $46 million (We owed $35-40 million when it was completed in 1984). It will be imploded in two years, but we'll still owe the money
-IPS Schools $500-800 million ( The schools have been crumbling since court-ordered busing)
-Police/Fire Pension $450 million (Our last three mayors have been underfunding the pensions so they wouldn't need to raise property taxes).
-Lucas Oil Stadium $725 million ( Fortunately, it will be funded by new taxes that are not property related, but those new taxes could have paid other obligations. By the way, the Colts receive most of the revenue from the new stadium while we pay for it.)

Just those costs will add up to about $2,500 for every man, woman, and child plus interest over the next 20 to 25 years even if you never step inside the new stadium or attend a class in IPS.

Here is the challenge the politicians have. Fifty percent of Center Township pays little or no property tax. The City of Indianapolis, State of Indiana, IUPUI, White River State Park, The Domes, Circle Center Mall, Anthem, Lilly, Simon Property Group, Indiana Convention Center, and whoever else who was able to cut a deal to locate downtown pay little or no property tax. Most of those properties reside on ground that previously was occupied by small businesses that did pay tax, but most relocated to a lower tax environment or went out of business. That means there is less property to pay a huge bill.

So, what is the solution? I feel that Indiana needs to replace all property taxes with a consumption tax. It is working in developing economies around the world and it would truly be a bold step for Indiana to lead the nation rather than follow.

What do you think? I'd like to know.