I beg everyone’s pardon for yet another post of strictly local concern.
On July 25, 2008, I sent the following letter to my state representative, Gregory Porter:
State Representative Gregory W. Porter
Indiana House of Representatives
200 W. Washington St
Indianapolis, Indiana 46204
Dear Congressman Porter:
I would imagine this is not the first such letter you have received regarding property taxes. I shall be direct. Property taxes must be lowered immediately. Your continued tenure in the Indiana General Assembly depends upon it. I will not pretend that I have ever supported you or cast a vote in your favor. However, by the same token, I have never sent campaign donations to your opponent either.
I have just received my latest mortgage statement and the news is grim. Because of the latest increase in property taxes, my mortgage payment has increased by 33%. When my wife and I were shopping for a house back in the late 90s, we calculated that we could afford a payment which did not exceed $900. We were frugal and purchased a house we knew we could afford. Ultimately, we purchased a house a few blocks from our church which would cost us $571.22 per month plus taxes and insurance. Therein lies the rub. While we knew we could afford a house payment in that range, that was in 1999 when property taxes were low. Since that time, we have seen our property taxes increase 100% (from around $740 per year to approximately $1,480 per year) and then again by an additional 62% (from $1,480 per year to $2,400). As of today, my monthly mortgage payment costs us $1,009.38 per month – far above the amount we originally budgeted. In the last four years, my taxes have increased by an astounding 324%! Nobody anticipates a property grab of such a large magnitude.
I note that, to your credit, you voted for Governor Daniels’ property tax cap. Thank you for that; it is a good beginning. However, I would urge you to sponsor legislation which would accelerate its implementation. Homeowners are feeling the crunch and cannot wait until 2010 for relief. The crunch is especially acute in light of escalating fuel and food prices and a 1% sales tax increase which was not similarly phased in over the course of three years. If anything, the short-term burden on the Hoosier taxpayer has been increased as a result of the “fixes” that were recently implemented.
There are things you can do immediately to begin to curb the appetite of government. Immediately commit to cutting non-public safety spending by 20%. Sponsor legislation which would limit the amount that the school boards may levy against homeowners. The schools represent approximately 50% of property taxes. Assuming this proportion has been relatively constant, that means that of the 324% increase which I have suffered, the schools accounted for 162% of the increase. I would assume that other homeowners in my district have seen similar increases. Meanwhile, there is little to show for the extra expenditures on education. One would expect that with the schools raking in almost three times as much money as they were when I purchased this house, that there would have been a dramatic improvement in test scores and educational outcome in IPS. There has not been.
One of the factors that my wife and I considered when we bought a house in this neighborhood was the fact that IPS schools were abysmal. It was apparent that if we were to have children in this neighborhood, we would be forced to send them to private schools. Of course, we always had the option of purchasing a house in Carmel where the public schools are exceptional, but property taxes in Carmel were prohibitive. However, because property taxes were low in this area when we moved in, we decided that in lieu of paying higher property taxes to obtain adequate schooling, we would make our extortion payments to IPS and spend the remainder on tuition for private schools. The numbers were about even. THEN. Now, if we were to have children, we would be forced to move out of this community.
No. We pay too much and receive little in recompense in the way of government services. Because government services are so poor, it is my view that we should start cutting them. If IPS will not educate our youngsters, we should cut their budget. Spend money where there are positive results – and only where there are positive results. I call upon you to lead the charge to reduce government spending (not just limiting its growth) and to immediately provide relief to property owners in your district. Perhaps a good start would be to slash non-public safety budgets across the board by 20%. Sponsor legislation that limits the school board’s discretion in levying taxes against property. Sponsor legislation that accelerates the implementation of the 1% tax cap to 2009. If you will not, we will find another who will.
Sincerely,
Karl [...]
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