Mayor Ballard to unveil city budget
Budget could include tax increases for homeowners
Last Updated: 107 days ago
INDIANAPOLIS - Mayor Greg Ballard is set to unveil a billion-dollar city budget Monday night at a City-County Council meeting.
Ballard is expected to discuss plans to cut the Homestead Property Tax Credit which could mean a $22 tax increase for 75 percent of homeowners.
Officials said by eliminating the homestead tax credit, the city would save $11.5 million.
"This is a leftover remnant of the pre-property tax cap era. Every county around Indianapolis has already eliminated this credit. The state has eliminated the credit. Every homeowner in the state is protected by the one percent tax caps. So this would not change that. All this does is stop taking income tax money which we could use to fund IMPD and sending it to pay property tax bills," Mark Lotter, mayoral spokesman, said.
Lawmakers say the tax increase would allow the city to hire more police officers.
"It seems only fair that the folks who are getting the benefit of IMPD protection should also help pay for it. Right now the IMPD taxing district only covers the old city limits. So those people pay an extra property tax levy for IMPD, while the folks who are living in the townships outside of the old city limits don't," Lotter said.
So far, Democrats have failed to provide a response to the mayor’s plan.
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