Wanda English Burnett, Editor

Local office holders, business leaders and property taxpayers gathered for an early morning opportunity to meet with state legislators Friday, February 1. Despite the icy weather that closed area schools, the breakfast meeting, sponsored by Southeastern Indiana REMC, went on as scheduled at the Southeastern Career Center in Versailles.

State Representatives Bob Bischoff, Cleo Duncan, along with State Senator Johnny Nugent, greeted constituents, after South Ripley senior Nick Grider, Indiana National Guard member, led the pledge of allegiance.

“It’s half time and the score is tied!” declared Nugent, who added, “so far, so good.” He said this year has been by far the most bi-partisan effort he has seen in a long time. The common goal uniting politicians? The chance to provide genuine property tax reform, according to Nugent.

Nugent told the crowd he believes the governor’s proposal will leave Hoosier property taxpayers with substantial, meaningful and permanent relief. He described the present tax system as “broken” needing much more than a Bandaid.

Results from a recent survey Nugent sent to voters revealed that some people weren’t interested in any of the proposals. “That’s good too,” he told those gathered, saying he welcomes new ideas. “We wanted to get people thinking. Don’t hesitate to bring your thoughts forward.” He said the end result is to ultimately get the best product for property taxpayers.

A bill that has caused an uproar among local office holders has passed out of the House with only the township trustee assessor position eliminated. (Ripley County does not have this position). This controversial bill is packed with ways to cut property taxes, as much as 40 percent according to Duncan. But, in the meantime, the proposal to take away some elected positions such as township trustees, county assessor, clerk and more, has people protesting. The new proposal says a county CEO would be elected and then that person in turn would appoint some of the presently elected positions. Many felt this was an invasion of their constitutional right to vote. In fact, the constitution would have to be amended to allow this to happen.

Duncan said she was glad to report that the local elected offices are “in tact.” All three legislators agreed the bill was in the process - and it’s a lengthy, complicated one - and they couldn’t let their guard down. However, Nugent remained confident “the right thing” would be done. The bill is now before the senate.

During the interactive portion of the meeting, Councilman Donald Dunbar noted that Ripley County had been very frugal and for the past three years officer holders have cut their budgets. He said he has a problem with the proposal that could see some of these same office holders positions eliminated.
Bischoff explained that taking the right to vote on these offices away would mean changing the constitution, which would be a complicated and time consuming process. He did not support taking government away from people (local office holders) who are closest to people (voters). “People need someone close they can go to,” he noted.

Nugent commended Ripley County for their frugal care of money and said the governor’s proposal would cut some frivolous spending at local levels, but didn’t lump Ripley County in that group. “I read reports in the Osgood Journal and The Versailles Republican,” Nugent said. “You (council) have used the word no a lot. That’s the attitude we need in controlling government spending.”

While everyone agrees property taxes need reform, what is the solution?

Duncan said shifting school operating and transportation costs, along with child welfare costs from the property taxpayer to the state budget would significantly reduce the tax burden. Also a one percent sales tax option from six percent to seven percent is favored.

Some people think a greater hike in sales tax would solve the problem. But, Nugent cautioned that “mom and pop” businesses that border other states with lower sales taxes, would suffer greatly. He owns Nugent Tractor Sales in Lawrenceburg and says he has positive proof of the negative impact that would have.

With 170 bills coming from the House to the Senate, this session is a busy one with major issues at stake, according to the legislators. Towering over nearly every other issue is property tax reform and what it will take to reach a compromise.

“What’s being done for small businesses?” Versailles businessman Jerry Gilpin asked. “Where does the bill about protecting tax exempt status of churches and organizations stand?” Paul Hardy of Hardy Insurance asked. The issues of a three county water solution was addressed, along with economic growth.

The anticipated property tax rebates that the neighboring counties of Jefferson and Dearborn have already received were discussed. Bischoff said the windfall came from legalizing slots at the race tracks. This money would have gone into the state’s general fund, but Bischoff said “we as legislators wanted it to go back to the people.” The rebate amount varies for each taxpayer and is figured on a percentage of the homestead credit a person has paid.

Owen Menchhofer said he felt sending the rebate checks was a “big waste” and felt a credit would have been a better choice. Auditor Mary Ann McCoy noted it will cost about $4,000 in postage alone to mail the checks. She went on to say the rebates for taxpayers in Ripley County would be sent in about a month. She said the reason for the delay was that Ripley County opted to cross reference and keep the rebates of those delinquent taxpayers. Nugent and Bischoff said every county was mandated to do that. Nugent further pointed out that the money had been sent to counties in November and they should have invested it and with the interest paid, counteracted the clerical costs to process the rebate checks. McCoy said Ripley County had done that.

The sale of the toll road in the northern part of the state was discussed briefly with Duncan and Nugent being in favor. “Other states are looking to Indiana as a leader on this,” Duncan noted. Nugent called the governor’s idea for the 75 year lease of the toll road “brilliant.”

Ripley County Chamber representative Dee Dee Benkie moderated the question and answer session, which lasted about an hour with property taxes dominating the conversation.

“Indiana is the only state in the midwest looking at reducing taxes,” Duncan noted. All three said there was a lot to consider and they were listening to the voters and trying to make decisions that would have the best outcome for Hoosiers.

You can contact your legislators: Nugent at, 812-537-0628 or 1-800-382-9467; Duncan at: 317-232-9793 or 1-800-382-9841; Bischoff at: 812-537-2061 or 1-800-382-9842.

WANDA ENGLISH BURNETT PHOTO Representative Cleo Duncan, right, talked one-on-one with constitutents following an early morning breakfast last Friday at the Southeastern Career Center. Also pictured are: Von McGuire, left, and Jerry Gilpin, center.