Amendments to property tax bill could impact funding for schools, fire departments

INDIANAPOLIS — In a vote down party lines, Indiana House Ways and Means passed SB 1 out of committee Monday — a move that included House Republicans tacking a 368-page amendment onto the bill.

“I think we’re pretty far away from where the governor wants to be,” State Rep. Gregory Porter (D-Indianapolis) said. “We still have a lot of movement on it to get to the point that we can even entertain as Democrats to even vote for the bill, but it has a long way to go.”

If House Republicans get their version of SB 1 to the governor’s desk, homeowners could get a tax credit of up to $200 starting next year, and fixed-income seniors and disabled veterans could receive additional credits. Under the amended plan, all homeowners are expected to save $1.1 billion in property taxes, while farmers are estimated to save more than $140 million over the next three years.

“If we do nothing, local government will grow 5.3%, and this takes it down to 3%,” State Rep. Jeff Thompson (R-Lizton), the House Ways and Means Committee Chair, said. “So, it’s a decrease to the increase.”

The amended bill also caps the max tax rate for fire territories at 40 cents — a move that shocked several fire chiefs.

“We’ve been planning for growth under the current rules,” Chief Danny Brock of the Avon Fire Department said. “Now, the rules get shifted, and now you’ve got to go fight for your money.”

“I don’t know what we’re going to do” Chief Rick Duncan of the Danville Fire Department said. “It’s absolutely irresponsible in my opinion what just happened.”

If the amended bill passes, Chief Duncan said he’ll not only need to redo next year’s budget, but will most likely need to close a firehouse in his district.

“The firehouse that I have to close on the western end affects everybody on the western part of Danville and all of Marion,” Chief Duncan said. “We’re the last paid fire department until you hit state lines. I can only do one incident at a time. If that fire house is closed, and somebody has a heart attack, you’re getting my only engine and my only medic truck, and that’s it, so the next person that has an emergency, there’s no way to help them.”

The bill also incorporates a provision that would require public schools and charter schools to share property taxes under certain circumstances.

“A few hundred thousand dollars to a small district is decimating,” concerned parent Kelly Mosesso said.

“We have worked hard to fund IPS, and now the state is just taking that money away,” Kate Brumbaugh, a former teacher, said.

The bill now heads to the House for consideration. It is expected to pass out of the House and will likely face a contentious conference committee battle between both chambers.