Post by Admin on Jul 17, 2012 22:38:07 GMT -5
What is the purpose of a merger? A merger is supposed to create efficiencies and save tax dollars. Does this merger save money to the tax payers?
Let's take a look at how this merger will affect the HSE school system. One of the major components of the merger of Fall Creek Township is the annexation of all the unincorporated residents into the Town of Fishers. Unincorporated residents will be charged a 15% - 20% tax hike on their property taxes for becoming Fishers residents. The constitutional property tax caps implemented a few years ago by Indiana voters come into play here. If Fishers taxes unincorporated residents and they are at their tax cap of 1% for their property, then other taxing units are reduced to maintain the 1% tax cap. Since most of our taxes goes to HSE schools, then the schools will receive less tax revenue.
Who makes up for this tax difference? The answer is all Fishers residents. A prime example is the Geist Annexation. The Geist United Opposition (GUO) reported that $0.5 million dollars per year and every year was reduced to HSE schools when those tax dollars went to Fishers because of the tax caps. In fact, the GUO gave up their efforts to fight the annexation when the constitutional tax caps went into effect.
Very little effort was made by the Fishers Town Council and the Fall Creek Township Board to reduce this impact to HSE schools by annexation by creating two taxing districts, a rural district and a urban district. The rural district would see less of a tax increase than the urban district per the Plan of Reorganization document. To be eligible for the rural district, the property owner must have 5 acres or more and rezone their property to the Estate Residential (ER) zoning district. To date, of the many hundreds of parcels in the unincorporated area, only about 20 property owners have rezoned their property. So to get this exemption from paying the highest tax rate, only the large land owners are eligible. The normal sized parcels are not eligible for this exemption. Is this fair?
How much will this merger hurt HSE schools? Maybe another $0.5 million per year? It's hard to tell, but be on a look out for yet another HSE school referendum next year if this merger is successful.
Let's take a look at how this merger will affect the HSE school system. One of the major components of the merger of Fall Creek Township is the annexation of all the unincorporated residents into the Town of Fishers. Unincorporated residents will be charged a 15% - 20% tax hike on their property taxes for becoming Fishers residents. The constitutional property tax caps implemented a few years ago by Indiana voters come into play here. If Fishers taxes unincorporated residents and they are at their tax cap of 1% for their property, then other taxing units are reduced to maintain the 1% tax cap. Since most of our taxes goes to HSE schools, then the schools will receive less tax revenue.
Who makes up for this tax difference? The answer is all Fishers residents. A prime example is the Geist Annexation. The Geist United Opposition (GUO) reported that $0.5 million dollars per year and every year was reduced to HSE schools when those tax dollars went to Fishers because of the tax caps. In fact, the GUO gave up their efforts to fight the annexation when the constitutional tax caps went into effect.
Very little effort was made by the Fishers Town Council and the Fall Creek Township Board to reduce this impact to HSE schools by annexation by creating two taxing districts, a rural district and a urban district. The rural district would see less of a tax increase than the urban district per the Plan of Reorganization document. To be eligible for the rural district, the property owner must have 5 acres or more and rezone their property to the Estate Residential (ER) zoning district. To date, of the many hundreds of parcels in the unincorporated area, only about 20 property owners have rezoned their property. So to get this exemption from paying the highest tax rate, only the large land owners are eligible. The normal sized parcels are not eligible for this exemption. Is this fair?
How much will this merger hurt HSE schools? Maybe another $0.5 million per year? It's hard to tell, but be on a look out for yet another HSE school referendum next year if this merger is successful.
