Pfaff votes against tax hike on Hoosiers

Today, Indiana House Republicans passed Senate Bill 1 with an amendment that will potentially increase Hoosiers' local income taxes by $1.1 billion annually while cutting police, fire, EMS and public schools services by $1.4 billion over three years. While the bill was pushed through with very little time to review the possible fiscal impact, it's clear that SB 1 will provide minimal property tax relief to Hoosiers. Republican leadership told Hoosiers it's time to "tighten our belts" while discussing this legislation, despite House Democrats' concerns that SB 1 will choke the life out of vital services provided by local governments.

State Rep. Tonya Pfaff (D-Terre Haute) issued the following statement after voting "no" on SB 1:

 “This tax bill offers very little to individual homeowners while shifting the burden to increased local income taxes. The amount homeowners save in property taxes will be spent on the increased local income taxes needed for our community to just keep functioning. 

“Vigo County stands to lose $20.5 million under this plan. Of course everyone wants to pay less in property taxes, but at what cost? This may shave a couple of bucks off of your property tax bill, but our communities will lose funding for police and fire, public schools and road repairs. 

“The legislature promised a real property tax plan that would help working families get ahead, not a tax bill designed to fool them by shifting around numbers on their tax bills. Hard working Hoosiers deserve better. Hoosier taxpayers deserve real tax relief.” 

The bill now heads back to the Senate for a concurrence vote. During House session on Wednesday, April 9, Gov. Mike Braun signaled that this was the Indiana GOP's final property tax plan. House Democrats worked to make the bill better on the House floor via amendments, which were all voted down by the Republican majority.