Lawmakers Pass Property Tax Plan - In Indiana

in

http://www.theindychannel.com/politics/15597167/detail.html

Lawmakers pass property tax plan in Indiana. Maybe we can borrow some of their ideas. At the very least, I am intrigued.

"No more will taxpayers be asked to adjust their tax bills to government's appetite," Daniels said. "Government will now ... need to adjust its spending to what taxpayers can reasonably afford."

Check out www.in.gov for more links about the property tax plan. Apparently, there is more than corn in Indiana.

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IlliniPundit's picture

More here.

I had scheduled a post on this very topic for tomorrow morning.  :-)

I travel  on business frequently along the eastern border of Illinois with Indiana...It's amazing how many businesses move just across the line because of the property and business tax problem with Illlinois. Ya think Naomi gets the point?

B is for Business's picture

Naomi probably thinks that if you raise taxes and increase fees it increases revenue. It sounds pretty simple if you think about it that way.

http://www.forthegoodofillinois.org/Blog/2007/10/4/Illinois-Losing-Jobs-vs-USA/

"Short-term: Illinois Job Growth Lagging. The lack of job creation has only continued since our current Governor took office in January of 2003. Over the last 4 ½ years, if the job growth in Illinois would have only matched the national average- Illinois would have gained more than 321,000 new jobs. We only gained 129,000. By being a below average job creator, Illinois lost the difference of 192,000 jobs. Illinois ranks 45th out of the 50 states over this period. (Source: US Department of Labor, Bureau of Labor Statistics). In the single year of 2006, Illinois just below average in the employment rate: 26th/50 states."

Our governor has a state of state to talk about corporate loopholes.

If you look at Indiana Governor Mitch Daniels' page (www.in.gov/gov/2305.htm) it is very attractive:

"Indiana is on an economic hot streak, thanks to Governor Daniels' strong leadership and the pro-active business-minded skills he brought to state government from his experience as President of Eli Lilly and Company's North American Pharmaceutical Operations and CEO of the Hudson Institute. Daniels created the public-private Indiana Economic Development Corporation (IEDC), became chairman of its board, and ordered it to act at the speed of business, not the speed of government, to attract new jobs. During its first year, the IEDC closed more transactions than in the previous two years combined. In 2006, the IEDC topped its 2005 results in only ten months while becoming the only state in the nation to land three high profile automotive investments - Toyota, Honda, and Cummins. In 2007, the IEDC announced its third consecutive record-breaking year for new investment and job commitments in Indiana while the Governor's continued focus on renewing the state's agricultural sector and strengthening our rural communities moved Indiana to the forefront in the biofuel and clean energy areas."

Now they are addressing property taxes.

I'm totally jealous.

RexBradfield's picture

"three high profile automotive investments - Toyota, Honda, and Cummins "

I succinctly remember Naomi's efforts to land one of those plants, she was putting campaign bags on doorknobs in Champaign and Urbana, complete with help from Madigan staffers.

When I was first licensed as a Land Surveyor, Illinois had a very good Surveying Act, and many States just allowed reciprocity if you had an Illinois License and Indiana was woefully inadequate in their registration requirements. But they realized it and changed that and now are one of the Best in the Nation. They require a Survey to be done AND RECORDED for any change in ownership or usage. They have a County Surveyor System and Surveys in Indiana are much much much easier and less costly because of the number of references in the Surveyor's and Recorder's offices. They did not have a single boundary dispute lawsuit last year or so I heard in my last Professional Development Seminar. If you are Registered in Illinois, you must pass a test in Indiana to become a Land Surveyor, no reciprocity. Illinois has fallen back and not remained at the forefront.

Indiana is getting it right in a lot of government avenues and they are not wasting time on political maneuvering or stupid laws they spend their time figuring out what is good for Indiana and then DO IT.

The damned heathens didn't even spend time stopping smoking, they had the audacity to bring in a bunch of cigarette smoking, tobacco spitting automobile workers to make sure they had plenty of second hand smoke.

But hey, we voted Rod in and Naomi in, so we get what we vote for.......No Smoke and Broke

To that end, I am, and shall always remain;
Rex Bradfield

"But hey, we voted Rod in and Naomi in, so we get what we vote for.......No Smoke and Broke"

Don't forget Mikey, we voted him in too.

IlliniPundit's picture

And we're getting exactly the government we deserve.

People in Danville that go to Indiana to buy smokes will now be filling up on cheaper  gas as well. Way to go Illinois!!!!!

Is it really the voters' fault that we only have bad choices on the ballot?  I mean, it may be satisfying to blame those stupid voters, but it's not like many good choices are to be had.

Rex wrote:  No Smoke and Broke

The broke part -- not so good.

The no smoke part  -- fine with me

B is for Business's picture

Paying 1% of your appraised value is reasonable. I took out a calculator and compared it to what I'm paying now. Property taxes on a $150,000 home = $1500/yr. This is reasonable. It is simple. They will easily budget your property tax bill.

Imagine you're a 20 something and you can choose between Indianapolis and Chicago.

1) More likely you'll get a job.
2) Chicago sales tax 10.25%. New Indianapolis sales tax 8%
3) Indy property tax rate 1%. Chicago ? (http://www.cookcountyassessor.com/ccao/howwhy.html) Nice and easy to figure....
4) Indy has implemented an aggressive privatization effort to manage costs. Cook county just doubled the sales tax while you turn on the sound bites on WGN of angry politicos stubbornly refusing to cut "ANY" services.

Imagine you are a business looking to start or wanting to expand.

1) Illinois pushing for gross receipts tax, a pyramid scam.
2) Illinois pushing to increase employment taxes
3) Illinois talking about closing corporate loopholes making business out to be the bad guys.
4) Illinois passes 300+ new taxes and fees on business, raids funds, and then raises more fees to replenish those funds.
5) One set of Chicago dems looks attractive because another faction has pretty much destroyed the state.
6) Workers comp costs out of control.
7) Labor costs much higher across the board.

Hard to believe that Indiana is just a few miles down the road. It will not be surprising that companies and talent will be taking a harder look at Indy during the next decade.

Let's see what the next budget brings whether Naomi and Frerichs vote to keep down the trend.

IlliniPundit's picture

"Is it really the voters' fault that we only have bad choices on the ballot?  I mean, it may be satisfying to blame those stupid voters, but it's not like many good choices are to be had."

Yes.  We choose the choices.  For example, there were better choices in both the Democratic and Republican Primaries for Governor than the nominees we ended up with.

We choose our elected officials.  We get exactly the government we deserve.  If we don't like it, it's our responsibility to change it.  Nobody else - not even US Attorney Patrick Fitzgerald - is going to do it for us.

RexBradfield's picture

Gordy,

Amen

To that end, I am, and shall always remain;
Rex Bradfield

Illinois will never have a property tax program like that!!  It's far too simple.  If it's not a hundred pages long and saddled with pork it will not fly.  As for Frerichs  and Ms.Jacobson, they will continue to do what they are told to do by the Chicago machine.

RexBradfield's picture

AnonymousMe

As you probably are aware from my previous posts, I am a non-smoker, and have been for my entire life, since my brother made me smoke 2 CARTONS of unfiltered cigarettes when he caught me smoking, so smoke always had a bad effect on me. So we are on the same page about the evils of smoking, but I simply made choices in my life to avoid smoke. I didn't need Naomi to raise me (God being raised by Naomi, calling Dr. Karvorkian)

My little saying was directed at this:

The State is in such bad financial shape they are extending a grace period to companies, etc. who register with the Sec. of State's office, just to get another two million in the treasury. Prior to their passing the smoking ban legislation, the Comptroller advised the lawmakers and Governor that it would probably cost the state between 60 to 80 million dollars in lost sales tax and stamp revenues.

Losing that revenue is again shortsighted "knee jerk" legislation that solves one problem by creating another. There are VOLUMES of engineering solutions to second hand smoke that would not cost the State a penny, that could have been implemented and also been reasonable for the businesses to absorb. So lets see ................ there are ways to improve the health of the general public that don't involve costing the public more taxes and Illinois choses the one that costs the State money.

Indiana gets it, Illinois....Rod and Naomi.....don't

No Smoke and Broke (because of stupidity)

To that end, I am, and shall always remain;
Rex Bradfield

Cook county property tax rate is 1.5%. 

That 20 something must also consider that Chicago charges a property transfer tax to the buyer in the amount of $7.50 per $1000 of the purchase price, the seller is charged $4.50 per $1000.

B is for Business's picture

"Illinois will never have a property tax program like that!! It's far too simple."

Leave up to Hoosiers to bring about radical reform by making things simple and transparent.

If we're going to talk about Change, do we look at Sen Obama's example or Gov Daniel's example?

Does Indiana have a state income tax?  If so what %?

Does Indiana have a state income tax?  If so what %?

2007 rate 3.4%   http://www.taxadmin.org/FTA/rate/ind_inc.html

Mitch for Veep?  He seems to have the economic issues down pat!

RexBradfield's picture

B

I vote for the latter, check out his qualifications.

His life is business, Obama is an attorney.

To that end, I am, and shall always remain;
Rex Bradfield

A few points:

MEDIAN PROPERTY TAX: ILLINOIS ranks 7th in the USA with a $2,904/yr property tax collection per household

SHARE OF INCOME: Homeowners in Illinois paid an average of 4.68 percent of income to property taxes. ( 6th Highest nationwide)

Yet we have plenty of money for these " capital"  improvement plans?

 

RexBradfield's picture

JohnBoy,

Ouch, you would think they would at least give us a complimentary jar of Vaseline to ease the pain.

At $2,904 for the average, someone is paying a Hellva lot less taxes than I am.

When I was married to my first wife, I paid a lot less taxes then because the appraised value of that dog house I was living in was pretty low.

To that end, I am, and shall always remain;
Rex Bradfield

Actually we don't choose the choices either.

First, to vote in a primary you have to declare membership in a party. Many voters aren't willing to do that for a variety of legitimate reasons. The system reflects a political reality that hasn't been true for decades. Primary voters as a result are no where even close to representative of the population as a whole.

Second, who's name appears on the ballot has nothing to do with the voters, people put their name on it. Almost all intelligent and honest people want nothing to do with political office because it has become so toxic to run. And even then, the fat beast of government has all but made itself unreformable if a decent person did get through.

Glock21's picture

Wait... so it's not the voters fault, because the voters have little interest in getting involved with political parties to change them, run as a better candidate, or even try to start a new party or run as an independent because they just aren't that interested... and the low turnout in primaries due to being not interested enough...

 

but it isn't their fault?  They aren't getting the government they deserve?

 

--

Glock21 Op/Ed

IlliniPundit's picture

If you're too disinterested or disgusted to work to change either the system or the candidates, then you are getting exactly the government you deserve.

So let me get this right. If you want to participate in politics, you have to join the republicans or the democrats. If you are a green, libertarian, or independent, well that's too bad. You either got to drink the koolaid or go home.

That doesn't prove my point how?

And this coming from republicans? The party only stands by the self-funders, so even in the ILGOP, you have to be a millionaire to play. How'd that work out in the 14th again? Or the 11th?

IlliniPundit's picture

"If you want to participate in politics, you have to join the republicans or the democrats."

No.  Why would you need to do that?

Are you under the impression that ballot access is prohibited for anyone other the Republicans or Democrats?  Rich Whitney and the now-established Illinois Green Party would beg to differ.

Do you think that's it's somehow impossible to impact an election or public policy from outside a political party?  The NRA would very much beg to differ.

"And this coming from republicans? The party only stands by the self-funders, so even in the ILGOP, you have to be a millionaire to play. How'd that work out in the 14th again? Or the 11th?"

About a well as I and many others told them it would.  Not every Illinois Republican is an idiot.  Just most of us.

I fail to see where IP implies that one has to buy in to the Republicans or Democrats in order to work to change either the system or the candidates.

B is for Business's picture

I take everything back. Apparently Illinois is more attractive than I initially thought.

http://www.cnn.com/2008/US/03/22/corn.flake.ap/index.html