HomeMy WebLinkAboutBill No. 22-12 Resolution Regarding Business Property TaxSl won L. Mc Brid e
Pre sid e 11l
Sh e il a N iezgod ski
Vice P res idcnl
Canne th Lee
C ha irpe rson, Committee
or the \tVh olc
Cann eth Lee
First Distr ict
H e nry D av is, Jr.
Second Distri ct
Sharon L. M c Bri d e
Third Dist ri ct
Troy \tVam er
Fo urth Di str ic t
Eli W,L"\
Fifth Distr ic t
She il a N iezgocl ski
Si xth Di stri ct
Kar e n L. \V hitc
A t L,Lrge
Rac hel Tomas Mo rgan
A l Large
Lo ri K H ,urnu rn
Al La rge
City of South Bend
Common Council
1l!t.1 Coun ty -C ity Building • 227 W . J ellerso n Bin i
South Be ll(!, Indi a n a 4660 l
February 23, 2022
Filed i•-r; , k's Office
r FEB 2 ';~0~2 I
I. -·--~ --.. _j D/.1.\vl i, jU _1 -> South Bend Common Council
4th Floor, County-City Building
South Bend, IN 46601
CI TY CLEfH<, SOUTH i:3END, IN
Re: A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF
SOUTH BEND, INDIANA, CALLING FOR FULL REPLACEMENT OF
FUNDS AVAILABLE TO THE CITY, GUARANTEED BY THE STATE,
FOR ANY CHANGES IN FUNDING RES UL TING FROM ANY CHANGES
IN INDIANA'S BUSINESS PERSONAL PROPERTY TAX LAWS
Dear Council Members:
As you know, the Indiana General Assembly is considering changes in the Indiana
Business Personal Property Tax laws, including the possible elimination of the tax .
Proceeds from this tax help fund local governments, including the City of South
Bend.
Whether changes in the tax laws will benefit the state of Indiana is a decision that
rests with the legislature . However, elimination of the tax without guaranteed
replacement funds will reduce the funding available to the City by an estimated $16
million.
This resolution does not oppose the possible changes in the business personal
property laws but does express the Council 's opposition to changes without a
method of full guaranteed replacement funds for the City . The well-being of the
City and its residents depends on continued funding for City Services .
I ask that this proposed resolution be considered by the Personnel and Finance
Committee on February 28 , 2022, followed by consideration by the entire Council
at the full meeting later that evening.
Thank you for your consideration.
Sincerely yours,
(?4J.Tv:~~ .... Rachel Tomas organ, Sout encl
Common Council, Member At Large
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BILL NO. 22-12
RESOLUTION NO.
Filed in Clo; ,,'s Office
DAWN M. JONES
CITY CLERK, SOU TH BEN D, IN
A RESOLUTION OF THE COMMON COUNCIL
OF THE CITY OF SOUTH BEND, INDIANA, CALLING FOR FULL REPLACEMENT
OF FUNDS AVAILABLE TO THE CITY, GUARANTEED BY THE STATE, FOR ANY
CHANGES IN FUNDING RES UL TING FROM ANY CHANGES IN INDIANA'S
BUSINESS PERSONAL PROPERTY TAX LAWS
WHEREAS, the Indiana legislature proposed changes to the depreciation floor and other
aspects oflndiana's business personal property tax as a priority in its 2022 legislative agenda;
and
WHEREAS, the status of such legislation, including possible amendments, is currently
in a state of uncertainty; and
WHEREAS, the Common Council of the City of South Bend opposes all legislation that
contemplates eliminating any portion of the personal property tax without permanent full
replacement guaranteed by the state; and
WHEREAS, any contemplated revenue replacement must be a source of revenue that
continues to grow over time just as a property tax base would in order to allow growing
communities to meet the demand for services; and
WHEREAS, a permanent state tax credit applied to all proposed business personal
property tax reductions, holidays, phase-outs, etc., could eliminate unnecessary burden on local
government in order to continue building health Indiana communities; and,
WHEREAS, the personal property tax is a relied upon method for funding many local
governments; and
WHEREAS, for taxing units not at the caps, a reduction in the tax base could result in
property owners paying more in residential property taxes. For those communities at the caps,
any phase out of the business personal property tax means a loss in revenue for local units of
government; and
WHEREAS, Business Personal Property Tax distributions to local units of government
exceed $1 Billion; and
WHEREAS, the City of South Bend in St. Joseph County could lose up to an estimated
$16 million in tax revenues ; and
WHEREAS, The Tax Foundation 2022 State Business Tax Climate Index lists Indiana
as number one ranking for property tax; and
WHEREAS, Indiana consistently ranks in the top states with an attractive business tax
climate, yet a community's quality of life is an increasingly greater influencer of business
relocation and growth decisions.
NOW, THEREFORE, BE IS RESOLVED, by the Common Council of the City of South
Bend, Indiana, as follows:
Section I. The Common Council of the City of South Bend, Indiana opposes an
legislation that contemplates eliminating any portion of the business personal property tax
without full and permanent replacement guaranteed by the State of Indiana
Section II. Continued full funding is necessary for the well-being oflocal governments
and their citizens.
Section III. This resolution shall become effective upon the date of passage
Dated this 28th day of February 2022 .
Sharon L. McBride, Council President
South Bend Common Council