Property taxes vary from one locale to another for similar properties in Indiana. Such inequalities are given as a reason why Indiana should not cap property taxes. But, I think those inequities are another reason to scrap the property tax altogether and shift that tax burden to the state income tax, which is uniform throughout Indiana.
The property tax system is inefficient, because it is very expensive to administer, operate and collect. Salaries for tax assessors, county property tax record keeping and property tax collections are huge costs in every county. Homestead exemptions, property tax abatements and appeals of assessments add to the problem. Property taxes also complicate the sale of real estate. Altogether, the cost of the system that must be maintained to assess and collect property taxes raises our overall tax burden higher than it would be without the property tax.
Major studies such as the "Indiana Property Tax Equalization Study" by the Indiana Fiscal Policy Institute are ongoing, seeking to guarantee equality in how property taxes are assessed and theorizing how much of the property tax should be borne by residential versus business property and so on. Property taxes "fairness" is a relative term. Who decides what is fair?
Property taxes are abated to businesses under the guise of jobs promised, but never abated for the elderly living on a fixed income and paying a tax for the same house for decades. That is legal plunder.
Ending the property tax would reduce the size of government because of the dynasty it takes to run it which would lower Hoosiers' overall tax costs. The taxes have to be levied, but the inefficient, confiscatory and discriminatory property tax must go.
By comparison, the state income tax is simpler both to levy and collect. If a certain county imposes local income taxes, those taxes are simply paid via the state income tax return, making the tax revenue much less costly to collect and distribute to cities and counties. Plus you could actually be the owner of your own home.
