TAXES: Public forum on income tax options presents a variety of opinions
CROWN POINT | Hobart Mayor-elect Brian Snedecor spoke for many city and town officials Thursday, expressing chagrin at any of the four options for a local income tax being considered by the County Council.
"I don't like any of the options," he said. But if forced to choose, he said he wants most of the property-tax relief generated by any new income tax to go to homeowners.
He was speaking at a public forum hosted by the legislative committee of the Lake County Council, which is mulling the passage of a 1 percent income tax on all county residents, workers and some business investors.
County Council President Elsie Franklin, D-Gary, said county leaders are being forced by the Legislature to raise an income tax and spend it on property tax relief.
Otherwise the state will freeze property tax revenues for cities, towns and the county -- municipalities that need those dollars to pay for services.
The Lake County Council has the option of spending money raised by the new tax -- approximately $78 million -- to reduce the property tax bills of either homeowners, renters, businesses or any combination of the three.
Crown Point Mayor-elect David Uran, Lake Station Mayor-elect Keith Soderquist and outgoing Mayors Linda Buzinec, of Hobart, and Shirley Wadding, of Lake Station, said they wanted property tax relief spread among homeowners and renters.
Hammond Mayor Thomas McDermott Jr. said he wants the income tax to be offered as an incentive for people to become homeowners in his city.
Whiting Mayor Joseph Stahura was vehement that tax relief shouldn't be given to big business, which already is getting multimillion-dollar breaks from the Legislature.
The sticking point is finding a formula to distribute property tax relief that will satisfy the most constituents.
Michael Claytor, a consultant for the council, said current state law forbids money paid in income tax to be kept in the taxpayers' home communities.
"There are winners and losers," Claytor said, noting differences in each community in the number of homeowners and renters and residents' wealth or poverty.
Claytor also said that in the case of rental property, property tax relief would be paid to landlords with no requirement that the relief be passed on to tenants.
County Councilwoman Christine Cyd, D-East Chicago, said earlier estimates wrongly suggested East Chicago would be a big winner, receiving almost $3 of property tax relief for every dollar paid in income tax.
New estimates indicate North Township -- including East Chicago, Hammond, Highland and Munster -- would get more money than paid out, but much smaller amounts than originally thought.
Highland Clerk-Treasurer Michael Griffin said a fair distribution formula would be based on population and be in proportion to the amount of income tax raised in each community.
County Councilman Larry Blanchard, R-Crown Point, is opposed to the income tax, saying it will rob residents of East Chicago, Gary, Griffith, Hammond, Highland, Hobart, Lake Station, Merrillville, New Chicago and Schneider.
Posted in Local on Friday, November 30, 2007 12:00 am Updated: 10:11 pm.
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