Chamber LINK Newsletter

Sales Tax Increase

Increases the sales tax from 6% to 7% (a penny) effective April 1, 2008 (to fund the assumption of levies and other assumed costs)

Local Option Income Tax (LOIT) Flexibility

Retains the LOIT options created last year in HB 1478-2007
Counties can increase LOIT to:
- pay for budget increases (instead of increasing levies);
- provide dollar-for-dollar property tax relief; and
- pay for public safety expenses,
  - but must adopt at least a .25% rate for budget increases or dollar for dollar relief to enact .25% rate for public safety.

Assessment Reforms

Eliminates trustee-assessors and transfers duties to the county assessor July 1, 2008
Eliminates township assessors in townships with less than 15,000 parcels and transfers duties to the county assessor July 1, 2008
Requires a referendum to be held in the 2008 general election in all remaining townships (those with more than 15,000 parcels) to determine whether to transfer their assessing duties to the county assessor
Makes numerous changes providing for greater assessment oversight by the Department of Local Government Finance (DLGF) to improve quality/accuracy of assessments

Referendums on Capital Projects

Requires referendums for projects backed by property taxes:
- $20 million threshold for high school construction
- $10 million threshold for elementary school construction
- $12 million or 1% of taxing unit's total assessed valuation threshold for all other capital projects
100 property owners or 5% of the registered voters must file objection before a referendum is required
Existing petition-remonstrance process applies to non-referendum projects

Other Important Aspects

Restricts excess levy appeals and repeals many provisions that allowed units to exceed the maximum levy allowed under the statutory levy growth formula
Places new restrictions on bonds paid with property taxes
Makes significant changes to tax increment financing (TIF) provisions
Converts the 100% inventory deduction to an exemption
Comprehensive changes relating to adjudication and services for children in need of services (CHINS) and probation children
Requires the Commission on State Tax and Financing Policy to study additional property tax issues this summer

The vast majority of the components were local in nature, and a good number of them were tax related. Among the more notable items, it included the tax exemption provisions sought by the NFL and the NCAA in connection with the hosting of the Super Bowl and Final Four events. It also changes the taxation of RVs and campers from personal property tax to excise tax. It also does the one simple thing it started out doing - to update the references in Indiana Code to conform with the federal Internal Revenue Code.

Property Tax Payments Made Easy
Beginning next year, counties will be authorized to let taxpayers pay property taxes in monthly installments thanks to SB 208, authored by Sen. Karen Tallian (D-Portage). An option of having the payments automatically deducted from your checking account is also possible, but each county council must first pass an ordinance to allow that to happen.

Source: Indiana Chamber of Commerce

BOONE COUNTY CHAMBER OF COMMERCE Chamber LINK Newsletter

BOONE COUNTY CHAMBER OF COMMERCE
Chamber LINK Newsletter