(I am a contributor to the Session, a blog of the Indy Star. Please visit it for up to the date thoughts on the IN General Assembly.)
After the 3, 2, 1 property tax caps went in to effect, everyone slowly began to realize that local governments were going to be hit very hard without the revenue from over-charging on property tax bills.
The legislature has introduced five bills for revenue generation at the local level. First is the much discussed Senate Bill 53, or commuter tax. This is proposed by Republican Jim Buck.
Senate Bill 31 introduces a new municipal income tax of 1%. This is also proposed by a Republican, Randy Head.
Democrat John Broden has introduced Senate Bill 356. It will allow increases of the Local Option Income Tax levy for public safety from 0.25% to 0.50% for everyone but Marion County.
While these won’t cost an individual taxpayer thousands per year, they will take more money from economies that are struggling to keep revenue flowing to local small business owners. The commuter tax alone will take around $100 per year out of your paycheck.