Council Approves Study Commission on Homestead Tax Credit
The Indianapolis City-County Council voted 23-6 Monday night, approving a proposal which creates a study commission on the effects of the homestead tax credit.
The creation of the bipartisan study commission comes as part of the budget agreement between the council and Mayor Greg Ballard's office. Democratic Councilor Brian Mahern voted against the proposal because he felt it would end with a raise in property taxes.
"There are many different ways in which we can improve our neighborhoods, improve public safety, improve the infrastructure, improve access to economic development within our neighborhoods that doesn't undercut our tax base but one thing we don't need to study is how to raise residential property tax bills in Marion County," Mahern says.
Last year, Mayor Ballard proposed eliminating the homestead tax credit in his budget proposal. The mayor's office says eliminating the credit would bring in an additional nine million dollars to the city.
Ballard said eliminating the credit would likely increase some residents' property taxes, but would only amount to an average cost of $24 per year. Democratic Councilor Vernon Brown, who also voted against the proposal, said it would affect 200,000 homes and he would never support an increase in property taxes.
A final report from the commission is due in mid-July.
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