Indiana 2005 House Bills 1001 & 1120

Watchdog Indiana Home Page Taxpayer Friendly Budget 2005-07 Structural Deficit & Delayed Payments Governor's Budget 2005-07 Indiana House Budget 2005-07  Indiana State Finances

Ordinary Hoosier working families, particularly those who are homeowners and dine out, took a hit during the 2005 Indiana General Assembly session. We were skewered by the multitude of state lawmakers who voted for the Governor-supported House Bills 1001 and 1120. 

The HB 1001 budget bill includes the Property Tax increases listed next. These property tax increases overshadow the positive development of a 2% property tax cap for Lake County.

(a) $436 million over the next two years from placing a cap on the state's Property Tax Relief Credits (PTRCs) while providing PTRC funding equal to the amount paid in 2002 plus the revenue generated by one percent of the sales tax. 

(b) School property tax increases of 1.2 percent the first year and 1.3 percent the second year for basic funding.

(c) One to 1.2 percent school property tax increases to provide textbooks to low-income students, recoup state cuts for transportation, and pay for utility and insurance costs.

(d) Lowered base assessed values for farmland will benefit farmers but shift property taxes to other property owners such as businesses and homeowners, especially in rural counties.

(e) Counties can issue bonds to be paid off with property taxes to fund about $100 million owed the state for housing juvenile offenders.

(f) $52.5 to $63 million in county levies this year to enhance and adequately fund services to protect abused and neglected children.

(g) A new rule requiring annual assessments of homes will increase 2007 homeowner property taxes between 8 to 11 percent.

HB 1120 includes the negative tax impacts listed next.

(a) Repeals the termination of the one percent Marion County Food and Beverage Tax and authorizes the Indianapolis City-County Council to increase the rate of the County Food and Beverage Tax an additional one percent; the resulting increased revenue is to be distributed to the Marion County Capital Improvement Board for use in paying debt service on obligations issued by an Indiana Stadium and Convention Building Authority to finance a new Colts stadium and expanded convention center facilities in Marion County.

(b) Authorizes Marion County to increase the following taxes: Auto Rental Excise Tax (from 2% to 4%), Innkeeper's Tax (from 6% to 9%), Sports Venue Admissions Tax (from 1% to 6%).

(c) Imposes a Ticket Tax on Colt's Stadium events: $3 per ticket for professional sports and $1 per ticket for other sports (excluding high school and charity events). 

(d) Authorizes an increase in the amount of state sales and individual income tax revenue that is annually captured by the Marion County Professional Sports Development Area (from $5 million to $16 million).

(e) Authorizes Boone, Hamilton, Hancock, Hendricks, Johnson, Morgan and Shelby counties to adopt a one percent Food and Beverage Tax and allocates half of the revenue would to Marion County stadium and convention center projects.

(f) Authorizes the municipalities of Avon, Carmel, Fishers, Greenfield, Lebanon, Martinsville, Noblesville, Westfield, and Zionsville to adopt a one percent Food and Beverage Tax in addition to a Food and Beverage Tax adopted in the municipality's parent county.

(g) Allows Lake County and Porter County to adopt a one percent Food and Beverage Tax to cover the costs associated with membership in a Regional Development Authority to pursue expansion of the Gary Airport, regional transit projects, and Lake Michigan shoreline development.

(h) Authorizes Wayne County and its municipalities to adopt a Food and Beverage Tax.

(i) Authorizes Howard County and Miami County to increase their County Option Income Tax rate by 0.25 percent to fund local jail costs.

(j) Authorizes Vanderburgh County to adopt a County Auto Rental Excise Tax.

(k) Authorizes Tippecanoe County to increase its Innkeeper's Tax by one percent.

(l) Authorizes Hendricks County to increase its Innkeeper's Tax by three percent.

(m) Increases the Oil Inspection Fee by 10 cents per 50-gallon barrel (raised to 40 cents).

Watchdog Indiana Home Page Taxpayer Friendly Budget 2005-07 Structural Deficit & Delayed Payments Governor's Budget 2005-07 Indiana House Budget 2005-07  Indiana State Finances

This page was last updated on 03/19/10 .