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A couple of things are going on with property taxes, according to Kosciusko County Auditor Sue Ann Mitchell.
Exactly how local taxing units - the county, the city, towns, townships, schools and libraries - will be affected isn't actually known.
Mitchell talked taxes Wednesday before a group of about 40 elected and appointed officials in the Justice Building meeting room.
Mitchell said the Bureau of Motor Vehicles has assured auditors excise tax distributions will be made in a timely manner this year.
She reminded the budget-makers that levy advertisements are based on estimated assessed values. The actual rates are lower than the advertised rates.
In 2005 assessors were advised that property tax values would be based on actual sale prices of each property. Called trending, the procedure calls for sales disclosure forms in various neighborhoods to be averaged and applied to all neighborhood properties.
Since property values will most likely increase, a 2 percent "circuit breaker" cap has been placed on taxes due.
If a residential property is valued at $100,000, the owner would pay no more than $2,000. This law goes into effect for 2008, and 2009 residential property tax payments. In 2010 all types of property taxes will receive the circuit breaker credit.
Of concern to local taxing units is the fact that the trending analysis hasn't been forwarded to the state for certification. The figures were due this summer.
At the Nov. 10 county council meeting, Mitchell said she expected the figures to be complete this month.
Last night a new schedule shows the data may not be received at the state level, for the first time, until January or early February.
Mitchell said if reassessments are received after Jan. 15, "it's going to cause problems" and estimated or provisional tax bills will have to be generated.
Mayor Ernie Wiggins introduced Ann Cottongim, Indiana Association of Cities and Towns government affairs manager. She talked about the association's Hometown Matters proposal.
Cottongim guaranteed the the legislature would increase property taxes in 2007 "if we don't do something about it.
"There is a perception at the state level that local spending is out of control. When I ask them what fund or project is being overspent, they don't have an answer."
Hometown Matters proposes local government be able to raise their own revenue to reduce reliance on property taxes.
Options include a local sales tax with a maximum rate of 1 percent; a supplemental or commuter tax on incomes that are earned outside the county; a local innkeeper's tax and a local food and beverage tax.
A portion of the newly generated revenues are to fund a savings account of three years for use as a rainy day fund.
The remaining new revenue is to reduce property taxes and balance budget needs.
The program also urges cooperation and sharing of employees, departments, knowledge and to streamline interlocal agreements.
When the school representatives and library officials asked how they were going to be funded, Cottongim said IACT didn't have all the answers.
State Rep. Dave Wolkins (R-Winona Lake) said he was leaning toward support of Hometown Matters, but it was a tax increase to city and town residents.
"We (state legislators) have been a terrible manager of property taxes," Wolkins said. "Property taxes are meant to be a barrier to local tax increases."
Winona Lake Clerk-Treasurer Retha Hicks talked about savings like making countywide bulk purchase orders.
She asked the people there to write down ideas that she would compile and e-mail to everyone. She asked that the group meet again.
