Fort Wayne nixes business personal property repeal

11 Oct 2016 1:49 PM | Administrator (Administrator)

Fort Wayne’s City Council recently defeated an ordinance to eliminate Allen County’s tax on business personal property. The vote was 5-3.


The vote points out the confluence of two important tax streams—local property tax and the effect of property tax caps across taxing districts. These issues were among those explored in February 2014 IFPI report.


In Fort Wayne the mayor and the councilors who voted against eliminating the business personal property tax said the lost revenue would make it difficult to balance the budget and meet the city’s needs. This is a decision that can be made locally thanks to legislation passed during the 2014 session.


Mayor Tom Henry also called for more cooperation among those who can take a slice of the local property tax revenue since the property tax caps affect distributions. If those with taxing authority act unilaterally, it can hurt the revenue generating ability of others under the caps. 


It’s a realization taking hold across the state and an issue for additional study as the state begins to fully understand the changes wrought in 2008.


Indiana Fiscal Policy Institute

One American Square Suite 150
Indianapolis, IN 46206
info@IndianaFiscal.org


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