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Peterson Asks for $85 Million Tax Increase

Indianapolis Mayor Bart Peterson is asking the City-County Council to raise taxes to pay for public safety. The Mayor is asking the Council to take advantage of new revenue enhancement measures passed by the General Assembly this year and increase local taxes.

Under the plan, the Council would adopt a Local Option Income Tax (LOIT) to replace increases in the County’s levy, as well as a public safety income tax to pay for police and crime prevention programs. The Mayor says implementing the public safety income tax would allow the city to have a revenue stream to pay for outstanding police pensions and invest in crime prevention programs as outlined by the Mayor’s Crime prevention task force.

The public safety tax would be levied at half a percent and is expected to generate about 85 million dollars in new revenue.

However, because the city is preparing its budget for next year, the Mayor says the tax increase must be passed before the Council begins budget deliberations.

The $85 million tax increase would come on the heals of increases in local property taxes, some of which are expected to go up by 50 percent.

  • Pike Voter

    This is one new / additional tax I do not mind paying for. If the CCC can find some current spending to CUT by 85 million that would be even better.

    To me this is something members on both sides of the isle should agree on.

  • Anon

    MMMM. Is it just me or wasn’t consolidation supposed to save 36 million? oh wait…. 12 million….. oh this just in 4 million….. we now have to pay more? Bart is truly a tool and no one wants to call him on it in mainstream media.

  • Bob

    There is no guarantee that this tax money will be used solely for public safety. Remember the taxes that were supposed to pay off the Dome were diverted to build Victory Field and Conseco Fieldhouse? The city taxpayers are still on the hook for about millions still needed to pay off the Dome.
    Given the record of this administration, I would not trust them with this tax money. I see a Trojan horse scheme here.

  • Jason

    Agreed. Let’s see, I pay higher than average property taxes for poor relief even more inefficient than the United Way, to subsidize schools I’d be terrified to send my kid to, and public safety that I can tell you is not being properly managed. More money isn’t the answer. You’re just asking for more money to bail out more problems that people in charge themselves have made. Where’s this money going to go? To enforce dog bans and firearms discharging bans? What’s next? A 20 million dollar subsidy to once and for all put an end to parking in front of fire hydrants?

  • Concerned Citizen

    More taxes? You have to be joking. I am not one of these individuals that say you should never raise taxes, but where does it end?

    The Democrats killed fire consolidation this year in the state house while the legislature is raising our property taxes 50% in some cases. Where does it end.

    I say vote everyone out and start fresh.

  • Concerned Taxpayer

    Mayor Peterson needs to downsize the number of employees and deputy mayors on the 25th floor.

    Why don’t the city have a wheel tax. Residents in Boone, Hamilton, Johnson, Hancock, Hendricks and Madison Counties use our streets and public safety officials and we local residents have to pay for them. If they choose to live in the surrounding counties, let them help subsidize the tax liability in this county when they come to the city to enjoy the sporting events like in New York.

  • Melyssa Donaghy

    I phoned council person Jackie Nytes last week to ask for a city audit. (Monroe Gray does not return phone calls or emails.) Jackie will call you back.

    I thanked her for the work she does for so little money and we both agreed council positions are underpaid.

    I suggested that a complete audit of city administration be performed to find out how much it costs the taxpayer to distribute every dollar received by city government. This audit should be performed by efficiency experts from an out-of-state firm with no ties to local politicians.

    I’ve heard that it costs as much as $2.50 to distribute every $1 our city receives. As citizens we have the RIGHT to demand SERVICE from our government.

    I would not be shocked if auditors found enough waste, corruption, and inefficiency in the Peterson administration to completely fund our law enforcement shortage AND give the councillors a raise!

    My challenge is to each of the city councillors to muster up the kahunas to propose this most prudent step before the taxpayer citizens are asked to give more money to the government. You’ll be a hero to the people if you do.

    There are good people who work in city government that probably can speak to the waste they see every day. I’d like to give them a voice to speak with efficiency experts and we create INCENTIVE to find the waste, corruption, and misuse of public funds.

    Call your city councillor now.

  • Anonymous

    Say what you will, Peterson is gutsy to put the needed stop gap in during an election year.

    The call for new taxes when he could hurt him the most just earned him my vote.

  • Anonymous

    Come on, this money is being sought in part to fund the operatation of Bart’s new stadium. If you’ll recall, the General Assembly helped provide money to build it, but not to operate it.

  • Anonymous

    Come on, this money is being sought in part to fund the operation of Bart’s new stadium. If you’ll recall, the General Assembly helped provide money to build it, but not to operate it.

  • Anonymous

    Since it’s a LOIT instead of a COIT, are residents of other counties who work in marion county subject to the tax increase?

    If the answer is yes, watch for businesses not downtown that have higher wages to move to the doughnut counties. Why wouldn’t they?

    The last four years have been disasterous for marion county.

  • http://indytaxdollars.typepad.com Fred McCarthy

    The mayor may have guts to ask for a tax increase – although a billion dollars for the stadium/convention center hasn’t seemed to faze him – but if he had the interests of the taxpayer at heart, he’d be asking Irsay and the Simons to renegotiate some of their welfare allowances.

  • http://indytaxdollars.typepad.com Fred McCarthy

    The mayor may have guts to ask for a tax increase – although a billion dollars for the stadium/convention center hasn’t seemed to faze him – but if he had the interests of the taxpayer at heart, he’d be asking Irsay and the Simons to renegotiate some of their welfare allowances.

  • http://indytaxdollars.typepad.com Fred McCarthy

    The mayor got away with tax increases for his billion dollar stadium/convention center deal. Why would $85 million for legitimate governmental expenditures take guts? If he had the interests of the taxpayers at heart, he’d be asking Irsay and the Simons to renegotiate their municipal welfare allowances.

  • Anonymous

    0810, you’ve got to be kidding me. Trying to counter that would be like debating one of the Flat Earth people, I just wouldn’t know where to begin.

  • http://the-russ.blogspot.com Russ

    You know what most people around here don’t get? The foreclosure rate around here is going up, which means that property values for most new homes in subdivisions made up of predominantly first-time home buyers are probably going down.

    A realtor told us that in my neighborhood, there were 4 foreclosures with the same floor plan as our house selling $10K to $20K less than what we paid for ours, and as those houses are sold, the value of our property decreases.

    So, if my property taxes go up this year, it’s probably not because of the auditing formulas, it’s because the people down at the CCC are spending money like drunken sailors and are out of control.

  • Melyssa Donaghy

    I talked with a bankruptcy paralegal over the weekend who told me there are 400 foreclosures a month in Marion County!

    Can anyone verify that?

  • George

    Would it be too much to ask the Mayor EXACTLY where this money is going? How about an itemized list and some accountability for these funds before the CCC votes on this mess.

    For the people who live in the donut counties and work in Marion then you need to pay for the services provided you by Marion. If you don’t like that then get another job in your own county. If the business you work for doesn’t like it then they can move outside the county. I’m tired of paying your freight.

  • Anonymous

    From IndyU:
    Indyu is listening to Vern and Sweet Pea on the radio right now! They are talking about Bart’s multi-million dollar tax increase and they can’t tell him where the money is going and how many cops will be hired! Indyu can tell you how many cops will be hired. The answer is none! These jokers all need to go!

    And oh yeah, Sweet Pea, STAND FOR THE PLEDGE TONIGHT.

  • Disgusted Taxpayer

    Costs overruns for the Central Library [millions]; Lucas Stadium [millions] plus $10 million per year maintenance costs; City Market [half million]; Indianapolis airport expansion [millions]; multiple tax abatements to private developers [millions of dollars]. $500,000.00 for a Primary Election that was understaffed and disenfranchised voters in the county. Indianapolis is fourth in the nation with home foreclosures.

    Mayor Peterson doesn’t see the need to downsize his administration to save millions. The city-County councilors want a pay increase but won’t vote for pay raises for law enforcement and new equipment. Homeowners’ have a 50% increase for property tax bill in the mail, and now a second tax increase for 85 Million dollar. The City’s AAA bond rating has dropped.

    My! My! My! I thought the city was broke, and they just keep right on spending our money with like a blank check. Yes, we need an itemized budget in advance to see how our tax dollars will be spent.

  • why

    Build new stadium, no money for police. Which one is easier to ask for?

  • Anonymous

    Bart Peterson, city councel other elected officials do not care what the voters think the primary elections were the test run to see if a general election could be fixed there was no outrage no one went to jail votes no longer count. One billion dollars for the Colts, half a billion dollars for a central library, pay raises for the cronies, spend spend spend… The fox lives in the hen house. We as citizens are lost no incumbent will ever be voted out again it is over

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