Indiana Can’t Even Get Budgeting Right

Did you know that Indiana ranked 49th out of 50 in a recent evaluation of the state’s budgeting process?  The main reason the state scored so low was due to not having line item veto and not having a requirement to balance the budget.  With the country’s economical vitality hanging in the balance, Indiana has once again made itself a spectacle of bad government.

The commitee that evaluated the state’s budget did not agree with Representative Jeff Espich that “Indiana’s system is open and appears to be leading Indiana in the right direction.”  I do not agree with the Representative, either.

The state by no means is heading in the right direction, with the highest unemployment rate in decades.  By no means is Indiana headed in the right direction.

There is, however, a slow process in place to resolve the unfair and expensive property taxes.  The first measure that the state took was to realize that there was a problem with the way the assessed value was determined.  However, the state did not come to this conclusion on its own.  It took a law suit. 

Ten years ago a new construction property owner filed a law suit claiming that the assessed value was unfairly advantageous to homeowners of older homes due to the lower assessed value.  The courts agreed and ruled that the assessed value will be determined by a fair market value system.  This fair market value system, however, still needs to be added to the outdated Indiana constitution.  Therefore, the residents of Indiana will be voting on adding this system and changing to a flat rate for all assessed properties.  The rates will be one percent for homeowners, two percent for investors, and three percent for business owners. 

The market value system was adopted and began in 2001; however, it took over two years before any muncipality received the much needed funding.    The flat rate system; however, will be voted on 2010 and if approved by the citizens it will take affect in 2011.

Instead for the last property tax collection in 2000, the state ruled that a collection of seventy percent of that year’s bill would cover any short fall for the new unknown tax bill when it was available. 

This proved to be disasterous for many new buyers because the title companies left it up to the sellers and the buyers to settle any shortfalls.

Incidentally, it took over two years before the figures were known.  As a result, I had a client who was unfairly paying property taxes forom a seller who refused to pay the property taxes when the figures was known years later.  The buyer had to sue the seller.

From the latter scenario, you may be able to see why I, nor the media believe that the “state is on the right track.”

Tell me what you think?  Do you think the state is on the “right track?”

It Is Time To Make A Stand

Is your NIPSCO bill and the potential rate increase getting you down? Is the property tax increase making you want to move to another state?
“Revolt at the State House”

There is something you can do.  For the NIPSCO bill, you could voice your opinion to the regulatory commission.  For property taxes, you can join the

Join the citizens of Indiana in a Revolt at the State House on March 25, 2009 at 11:30 am. 

Never before does a citizen need to make a stand and voice his or her opinion. 

Why is this important?

Well, the legislators willingness to incorporate a two percent circuit breaker should be all the evidence needed to say that even the legislators knew the property tax reassessment and trending was unfair.  However, if you still need more evidence, let’s examine.

The homestead exemption went from 35,000 to 45,000 after a few citizens or should I say a whole organization like Greater Northwest Indiana Association of Realtors and citizens of Lake, Porter, Marion, and other counties complained at the state house.

Still need more evidence.  Some cities and counties received demands to cut the fat out of their government i.e. get rid of Hummer (Gary) due to high tax rate.  2007 Gary’s tax rate was 9.62.  2008 Gary’s tax rate is 7.62.  2008 East Chicago’s tax rate is 9.62.

I am willing to bet that the high tax rate coupled with NIPSCO’s proposed electrical rate increase in some way contributed to the surge in unemployment rate in Northwest Indiana.

If accountability is important to you then stand with citizens of Indiana on March 25, and let legislators know “yes we can” have a lean government and still get all the services that every citizen pays his or her hard earned money for.

Get Ready to Move Out of Lake County

The recent action or inaction of Lake County’s officials caused the Governor to take controversial stand against Lake County that may cause the tax payers of Lake County to pay higher property taxes. 

Governor Mitch Daniels is quoted as saying, “the government reforms will move forward, even if it means leaving Lake County behind to face higher property taxes.”

Once again, Lake County is faced with “pulling themselves up by the boot straps” and changing their own destiny.

The officials of Lake County believe that the citizens of the county will not support Kernan-Shepard reforms.  The reforms are discuss in a recent blog at Are the Reforms Governor Daniels Proposed Going to Affect You?

I do not believe that the Lake County officials are “in touch with” the citizens of Lake County.  The citizens of Lake County do not want to pay high taxes, so it may be time to move out of Lake County.  Call Taylor-Brown Real Estate at 219 803 4489 for help with finding your new home in Porter or LaPorte Counties.

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