City Council Approves Resolution Opposing Personal Property Tax Elimination
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Jennifer Peryam-jperyam@timesuniononline.com
Warsaw City Council Monday approved a resolution opposing Governor Mike Pence’s proposal to eliminate the business personal property tax. The resolution states the estimated loss of revenue to Warsaw from the tax elimination would result in a $2.2 million reduction and would shift a significant burden to home and business real estates taxes. The resolution also states the city firmly believes that quality of life, amenities and economic development go hand in hand as residents require essential and community services that are paid for from business personal property taxes. During the Jan. 21 meeting, the council discussed the resolution being drafted and submitted letters to State Senators Ryan Mishler, Jim Banks and Randy Head and State Representatives Dave Wolkins and Rebecca Kubacki. The resolution urges legislators to vote against any attempt to eliminate the tax. There currently are two bills that reform the business personal property tax. House Bill 1001 would give the County Income Tax Council the option of phasing out business personal property taxes on new investments. Senate Bill 1 would eliminate the business personal property tax on businesses with less than $25,000 in personal property assessed valuation. Diane Quance, council president, said she did not support how the original ordinance was written and felt the personal property tax should not be eliminated at all. The resolution originally said if the tax was eliminated there would have to be state-guaranteed revenues to replace the lost dollars. Quance said the state-guaranteed revenue would fall on the taxpayer and increase taxes. The council agreed to take the state-guaranteed revenues section out of the resolution. Charlie Smith, councilman, said the elimination of the personal property tax will have a negative impact on the community. "There could be $2 million in less services, less police and fire protection, street repairs and park services," Smith said.
