Boy votes against tax hike on Hoosiers

Today, Indiana House Republicans passed Senate Bill (SB) 1 with an amendment that will potentially increase Hoosiers' local income taxes by $1.1 billion annually while cutting police, fire, Emergency Medical Services (EMS) and public school 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. Boy (D-Michigan City) issued the following statement after voting "no" on SB 1:

 

“Hoosiers across the state are struggling to pay their bills and buy groceries, all while having one of the lowest wages in the Midwest. This bill exploits the real concerns of struggling families and advertises gutted community services as ‘property tax relief.’ In reality, the bill will not lead to any tax relief, as local governments will be forced to make up lost revenue through income taxes to continue funding essential services like fire, EMS and police. 

 

“This bill will cost LaPorte County $18.1 million and Porter County $49.6 million. Also, the bill has rolled in language from SB 518, forcing public schools to share their already reduced property tax dollars with charter schools.

 

“This legislation is being rushed forward without even waiting for the state's updated revenue forecast, which is due next week. We don’t know the full picture of our current economy or what revenues our local governments can expect - and if more cuts are still to come, this bill only makes a bad situation worse.

 

“Republicans like to say this bill will create property tax relief, but that only applies to homeowners. Renters - who make up a significant portion of our communities - will see no benefit. In fact, they’ll be hit with higher local income taxes without seeing a single cent in relief.

 

“This bill will greatly damage our communities. It will force our fire and police departments to cut staff and it will dissolve school districts, all so that the majority can win a few political points. It will not reduce Hoosiers’ tax bills. I am greatly concerned by this piece of legislation and will continue to advocate against SB 1.”

 

 

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

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