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Joint Meeting of the Residential Neighborhoods Committee and the Community &Economic Development Committee <br /> November 12, 2001 <br /> Page 2 <br /> From To <br /> 3.4 % for income up to$ 90,000 3.9 % for incomes up to$ 90,000 <br /> 3.4 % for incomes$90,000 &above 4.4 % for incomes$ 90,000&above <br /> In response to a questwr n frac?Dr. Vat ItiVIr, D t M aimi anata-sl..that.tkr.pxtroarnirnn e,Q.w w l..' <br /> into the tax relief fund and to the tuition support stabilization trust fund. <br /> Mr. Nussbaum noted that the renter's deduction would be increased from $ 2,000 to $ 3,000; and <br /> that the business franchise tax would range from $ 50 to $ 100,000 based on the net worth of the <br /> business. He noted that twenty-one (21) other states have a business franchise tax. <br /> Dr. Varner inquired whether the net worth would be for property located in Indiana for a business. <br /> Mr. Nussbaum believed this was correct. <br /> Mayor Luecke questioned what projections were utilized in light of the present status of the <br /> economy. Mr. Nussbaum stated that he did not know the assumptions but would find that <br /> information out from Tom Varga. <br /> Council Member Coleman inquired about the shelter allowance lawsuit. Mr. Nussbaum stated that <br /> the Apartment Owners Association filed a lawsuit about a week ago challenging the fairness of <br /> putting the burden of taxation to multi-family living units. <br /> Council Member Coleman stated that in his conversations with Tom Varga that he believes that the <br /> lawsuit is not a frivolous one. Mr. Nussbaum stated that the Governor believes that they can <br /> successfully defend their program. <br /> Council Member Coleman inquired as to what "PTRC" stands for on page 9 of the handout. Mr. <br /> Nussbaum noted that it stands for"property tax replacement credits". <br /> Mayor Luecke noted that the city receives approximately 8 % under the old Bowen plan. The <br /> Mayor further noted that TIF areas would need to be assisted and he was glad to hear that that is <br /> under consideration. He noted the city's commitment to Bosch,and Crowe Chizek as examples. <br /> Mr. Nussbaum noted that current outstanding bonds must be protected and he encouraged the <br /> committee to have their voices heard by the state legislature. <br /> Mayor Luecke stated that the elimination of the inventory tax is good but he has concerns about the <br /> Urban Enterprise Zones since it depends on it. He noted that the UEZ ceases in two(2) years and <br /> this might be incentive for it not to be renewed. <br /> Council President Pfeifer inquired how the $ 20,000 subsistence threshold was developed. Mr. <br /> Nussbaum stated that it is based on HUD measurements of efficiency and is dependent upon <br /> market conditions in each county. Council President Pfeifer noted that most people do not live on <br /> investment income since most incomes go into their homes. She suggested that a $ 30,000 to $ <br /> 35,000 level should be utilized. <br /> Mr. Nussbaum stated that this rule was developed by the State Tax Board. He noted that there are <br />