Monthly Archives: October 2009

Property Tax Repeal Studies

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Eric Miller, Founder of Advance America today released the results of a professional study of their Property Tax Repeal Plan conducted by a respected professor at Indiana University, Dr. Craig L. Johnson.

Miller was joined by the following Legislators who support the Constitutional Amendment to Repeal Property Taxes: Senator Phil Boots, Senator Dennis Kruse, Senator Brent Steele, Sen. Greg Walker, Senator John Waterman, Rep. Jim Buck, Rep. Woody Burton, Rep. Eric Koch, Rep. Cindy Noe, and Rep. Jackie Walorski. Also in attendance were individuals representing numerous taxpayer groups around the state and Attorney John Price who is the Chairman of the Indiana Property Tax Repeal Alliance, Inc.

Prior to discussing the study Miller stated, “It’s time for a change in Indiana government.” He pointed out that Repealing Property Taxes is the only way:

1. To let someone finally own their own home, farm or business;
2. To let Hoosiers vote to Repeal Property Taxes;
3. To stop future property tax increases;
4. To save over $100 million in administrative expenses;
5. To stop incorrect assessments and
6. To not repeat history by raising existing taxes or creating new taxes in exchange for temporarily lowering property taxes.

Miller stated that the opponents of our effort to Repeal Property Taxes have used scare tactics to try to stop this effort. “The opponents have said that in order to Repeal Property Taxes the state would either have to raise the sales tax to 13% or raise the income tax to 9%. These opponents are intentionally trying to mislead the public. They didn’t consider the impact of controlling state and local government spending in our proposal or the time it would take to Repeal Property Taxes with a Constitutional Amendment.”

Dr. Craig L. Johnson served as the Consultant to review Advance America’s Property Tax Repeal Plan. He has been at Indiana University since 1992. Dr. Johnson is an Associate Professor of Public and Environmental Affairs at SPEA-Bloomington. Dr. Johnson received his Master of Public Administration and Ph.D. degrees from The University at Albany, State University of New York. His primary research interest focuses on improving how government finances are managed.

Dr. Johnson’s Study shows conclusively that Advance America’s Plan is fiscally sound and doable. The Study points out that if property taxes are repealed with a Constitutional Amendment, property taxes can be replaced:

1. By controlling government spending at the state and local level;
2. By setting up a Property Tax Elimination Fund to receive state money over and above the state spending control. This fund will also serve as a rainy day fund;
3. By enacting a 2% sales tax increase and a 1% income tax increase and business replacement revenue of $951 million only after the voters vote in 2010 to Repeal Property Taxes; (This amount for business replacement revenue is not a tax increase. It represents a reduction of over 50% in the amount businesses would be paying in property taxes in 2012 according to Dr. Johnson.)
4. By using over $100 million in administrative savings from Repealing Property Taxes.
5. The figures supporting our plan do not include any growth in state sales or income taxes from economic development that occurs from the Repeal of Property Taxes.
6. Additionally, the figures do not include interest on the Property Tax Elimination Fund which is estimated to be in excess of $250 million in 2012.

The entire text of the Study including a resume on Dr. Johnson is available at www.AdvanceAmerica.com.

Miller restated, “It’s time for a change in Indiana government. It’s time for the Senate and the House to have a fair, full and open debate along with a vote on the floor of the House and Senate so that all 100 Representatives and all 50 Senators can have the chance to vote to Repeal Property Taxes.”

http://hoosiersforfairtaxation.blogspot.com/2008/01/property-tax-repeal-study-from-eric.html

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Example of Plans , Results Limit Local Taxation Local Tax Levels

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Given that labor costs make up the bulk of school budgets, is a similar fight ahead with teachers?

Mr. Suozzi insisted it was not, but Mr. Iannuzzi said of a property tax cap, “I’m not going to let a blunt instrument butcher the progress we’ve made.”

“Is Tom in charge of this commission in order to provide a more formal platform to carry on the kinds of things he did with the P.B.A.? I would certainly hope that was not the governor’s intent,” he said.

But he added that he and Mr. Suozzi had spoken several times on Wednesday, “and each time he asked me to give him some time to demonstrate that he really wants to solve this problem in a way that’s fair to everyone.”

Mr. Spitzer raised eyebrows in his speech when he said the new commission would be vested with powers from the Moreland Act, a century-old law giving commissions subpoena power in investigations of government entities. It will allow the commission to dig into a variety of information related to school district spending, including the costs of energy, administration and labor.

“It’s kind of threatening,” said Timothy G. Kremer, executive director of the New York State School Boards Association. “Is there information that was kept secret?”

But Mr. Kremer said he was encouraged by the selection of Mr. Suozzi. He called it “a moment of genius” for the governor, because Mr. Suozzi had worked on lowering costs and consolidating services where possible in Nassau.

Mr. Suozzi is a lawyer and certified public accountant, a politician with a sharp wit who has been mending fences over the last year after ruffling a number of feathers among fellow Democrats. He and Mr. Spitzer were sharply divided over the tax cap issue when they competed for the Democratic nomination for governor in 2006. Mr. Spitzer’s embrace of the cap now is the latest sign that he is rethinking his approach, and even some of his ideas.

“People have been asking me why this is an investigation,” Mr. Suozzi said. “Because you have to get to the bottom of what’s driving these costs. I think the people will cooperate willingly.”

“I can’t imagine what the instances would be when I would use subpoena power, and I can’t imagine using it, but if I had to, to get the job done, I will,” he added.

Soaring property taxes have crippled homeowners and businesses across the state. A recent study by the Citizens Budget Commission, a government watchdog group, said New York’s property taxes were the seventh highest in the country.

New York City’s homeowners are insulated from the issue because the city uses an income tax to carry much of the burden of school financing; the city would likely be excluded from a cap.

The governor and his staff have become increasingly frustrated that billions of dollars in new education aid and property tax relief returned to homeowners through the School Tax Relief program, known as STAR, only seemed to give districts license to raise taxes further.

“We need stronger medicine,” the governor said in his speech. The Assembly speaker, Sheldon Silver, the Legislature’s top Democrat, was generally supportive. “No matter how much more STAR we do, somehow local property taxes keep going up around the state,” he said.

The commission is also charged with relieving the burdens placed on school districts for state mandates, including requirements for certain numbers of remedial reading teachers and autism consultants and training to deal with sexual harassment.

“The things mandated by state government are often done with the best intentions, but there are so many that the schools and the counties and the villages lose some of their discretion,” Mr. Suozzi said.

While the governor does not need the Legislature to create the commission, he will need lawmakers to approve their findings.

http://www.nytimes.com/2008/01/11/nyregion/11teachers.html?ref=nyregion

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Property taxes may go up 3 percent to cover HCMC shortfall

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County commissioners are looking at a property tax hike to make up for the loss of General Medical Assistance from the state. Many of them had harsh words for Gov. Tim Pawlenty.

For 2010, a year in which county tax assistance will deliver two new suburban libraries and the Twins’ new open-air ballpark, Hennepin County is considering a reduced budget to hold down spending in the face of the weak economy.

County Administrator Richard Johnson presented a $1.6 billion budget Tuesday to the county board for next year, down about 6 percent from this year’s $1.71 billion.

But even after cutting 163 jobs and reducing capital improvements, the county still needs to raise property taxes by 3 percent solely to pay increased costs at Hennepin County Medical Center, Johnson said.

Those higher costs were caused by the state’s cancellation of General Medical Assistance for poor adults, he said.

Hearing that, county commissioners began their budget deliberations by blasting Gov. Tim Pawlenty again for shifting the state’s budget problems to them. The county estimates that 40 percent of the state’s poor adults who were covered by General Medical Assistance live in Hennepin County.

The tax increase is required “just because the governor cut the legs out” from under thousands of low-income adults who depended on General Medical Assistance, Commissioner Gail Dorfman said.

Commissioner Peter McLaughlin said that “people need to understand that the county doesn’t operate in a vacuum.”

In the biggest economic crisis since the 1930s, the county’s tax revenues have gone down and the demand for services from people who have lost jobs has gone up, McLaughlin said.

While the county is doing its part by cutting staff and putting off improvements, McLaughlin said, state government is giving counties and cities less money.

Rather than raising state taxes, Pawlenty is “balancing the state budget on the backs of property taxpayers in counties and cities,” McLaughlin said.

http://www.startribune.com/local/south/62766622.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD3aPc:_Yyc:aUUI

Property Tax Assessments to be Mailed Soon

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