GOSHEN, IN (WSBT) — Goshen’s Mayor is anticipating a 30% revenue decline after Senate Bill 1, the property tax relief bill, was signed into law by Governor Braun.
Senate Bill 1 reorganized property taxes, changed local income tax, and is expected to bring relief to homeowners.
The state organizes its property tax within a 3-tier system: one for household, one for commercial rental or agricultural land, and one for commercial properties like manufacturing.
“And so, while the residential homeowners may see a small bit of relief, where municipalities like Goshen are really feeling that impact, are with those other two tiers of property tax changes and local income tax changes, ” said Goshen Mayor Gina Leichty (D).
The city has reviewed expenditures from the last few years and working with financial consultants to prepare for the impact of the the newly signed property tax bill will have on the community.
“With the changes, we anticipate that it’ll be around a 30 to 33% revenue reduction, with a change in what we are currently collecting through a combination of our local income tax, that’s through the county, and through our property taxes that are through the state,” said Mayor Leichty.
The mayor says deciding which potential services to cut will be a difficult decision, and while it’s too soon to talk specifics, delaying infrastructure projects is one possibility. The City will be working on it’s annual budget throughout the summer.
“So we’re going to have to think very carefully about how we make cuts, how any increases in income tax or other fees might impact our local community,” said Mayor Leichty.
She says city leaders will discuss ways to generate new revenue, but, there are also some restrictions and limitations when it comes to what the local government can do.
“We can’t just charge more. We don’t decide on our own. The state says what our rate of property tax increase can be. So, there are many things that are outside of our control,” said Mayor Leichty.
Mayor Leichty is concerned Goshen won’t be able to off-set the losses or increases in expenses while maintaining their current level of service. She is encouraging voters to call their local and state lawmakers, while the City is still working to determine how to operate with expected cuts.