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BILL NO. 22-12 <br />RESOLUTION NO. <br />Filed in Clo; ,,'s Office <br />DAWN M. JONES <br />CITY CLERK, SOU TH BEN D, IN <br />A RESOLUTION OF THE COMMON COUNCIL <br />OF THE CITY OF SOUTH BEND, INDIANA, CALLING FOR FULL REPLACEMENT <br />OF FUNDS AVAILABLE TO THE CITY, GUARANTEED BY THE STATE, FOR ANY <br />CHANGES IN FUNDING RES UL TING FROM ANY CHANGES IN INDIANA'S <br />BUSINESS PERSONAL PROPERTY TAX LAWS <br />WHEREAS, the Indiana legislature proposed changes to the depreciation floor and other <br />aspects oflndiana's business personal property tax as a priority in its 2022 legislative agenda; <br />and <br />WHEREAS, the status of such legislation, including possible amendments, is currently <br />in a state of uncertainty; and <br />WHEREAS, the Common Council of the City of South Bend opposes all legislation that <br />contemplates eliminating any portion of the personal property tax without permanent full <br />replacement guaranteed by the state; and <br />WHEREAS, any contemplated revenue replacement must be a source of revenue that <br />continues to grow over time just as a property tax base would in order to allow growing <br />communities to meet the demand for services; and <br />WHEREAS, a permanent state tax credit applied to all proposed business personal <br />property tax reductions, holidays, phase-outs, etc., could eliminate unnecessary burden on local <br />government in order to continue building health Indiana communities; and, <br />WHEREAS, the personal property tax is a relied upon method for funding many local <br />governments; and <br />WHEREAS, for taxing units not at the caps, a reduction in the tax base could result in <br />property owners paying more in residential property taxes. For those communities at the caps, <br />any phase out of the business personal property tax means a loss in revenue for local units of <br />government; and <br />WHEREAS, Business Personal Property Tax distributions to local units of government <br />exceed $1 Billion; and <br />WHEREAS, the City of South Bend in St. Joseph County could lose up to an estimated <br />$16 million in tax revenues ; and <br />WHEREAS, The Tax Foundation 2022 State Business Tax Climate Index lists Indiana <br />as number one ranking for property tax; and