WE BELIEVE
A litany of inaction, improper action and narrow vision has led to a crisis in public finance.
The property tax dilemma in Indiana is like an illness that has been ignored, then misdiagnosed, then mistreated. Illnesses dealt with in this fashion fester and spread until finally they shut down the entire body.
Such is the case with Indiana’s property woes.
Back a few years ago, the courts stepped in and demanded that Indiana restructure its antiquated property tax system. The system was badly outdated, badly flawed and patently unfair. The system was ill, but the illness had been ignored by our state’s leaders — elected by us — for decades.
Then came the misdiagnosis. The state embarked on reassessment, when what was really needed was exploratory surgery to consider all of the possible tax fund streams and where they might fit into an integrated system of public finance. Adding further complications, the inventory tax was repealed across much of Indiana, creating additional pressure on property taxes.
Then came the mistreatment, the bungled handling of reassessment. Different values have been placed on homes and businesses in different counties, leading to wild fluctuations in tax bills.
And now, the whole state is sick — sick of the whole mangled mess of property taxes. The symptoms in our home county, Madison, have been particularly pronounced of late.
Property owners are still waiting in fear for their 2006 tax bills because the state has not yet approved a rate for taxes payable this year. Public bodies — school boards, county councils, etc. — are forced to draft 2008 budgets based on projections of tax rates from the state. This is all guesswork, and it makes running an efficient government, which we all deserve, nearly impossible.
Worse yet, local government is having to borrow money because the state is so far behind in deciding where exactly the money should come from and how much should be distributed. This leads to interest payments that will ultimately be made by, you guessed it, taxpayers.
So, how can a sick patient recover from such negligence?
Such a recovery is never easy, but clearly the state has to come up with another program of treatment. Sweeping reform is in order, and state government must lead the way. Legislators say that the next session will be devoted to curing the property tax illness.
If they can’t find a cure, voters should seek a second opinion.
Opinion
EDITORIAL: Property tax virus has state reeling
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