House speaker: Lake income tax not going away

INCOME TAX -- Top Democrat says he'd consider expanding mandate to other counties

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INDIANAPOLIS | Indiana House Speaker Pat Bauer says he won't remove the income-tax noose from Lake County's neck.

The General Assembly this spring passed legislation forcing Lake County to impose a 1-percent income tax for property-tax relief or face $15 million in local spending cuts next year. The Lake County Council last week sent Republican Gov. Mitch Daniels a letter asking him to call a special legislative session to scrap the mandate.

"If there'd be any change, it might make the rest of the counties do the same thing," Bauer, D-South Bend, said Tuesday. "Anything we do ought to be tied to participation by local government. There's not enough money from state taxpayers to fix this problem significantly."

A number of factors, including a major overhaul of the assessment system, were expected to drive residential property-tax bills an average of 24 percent higher this year. But homeowners in Indianapolis and other pockets of the state have been bitten by even steeper tax hikes, sending state leaders scurrying for solutions.

At least a half-dozen counties, including Jasper, have approved new income taxes to ease soaring property taxes. But state leaders from both parties, including Bauer and Daniels, want more counties to get on board ahead of an Oct. 1 deadline.

Legislators allocated $300 million for state property-tax relief this spring, and Bauer suggested Lake County -- primarily East Chicago, Hammond and Gary -- could tap millions in local riverboat casino cash to further aid property owners.

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