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Town of Highland’s Experience for its Governmental Functions

This article explores the relationship between non-property tax revenues and expenses for the governmental and utilities functions in the Town of Highland. It also discusses rates of return and horizontal inequity compared to other communities in the area.

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Town of Highland’s Experience for its Governmental Functions

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  1. Town of Highland’s Experience for its Governmental Functions Illustrates relationship of non-property tax revenues to expenses by functions

  2. Town of Highland’s Experience for its Utilities (business-type) Functions Illustrates relationship of non-property tax revenues to expenses by functions

  3. Town of Highland’s Experience for its Governmental Functions

  4. Town of Highland’s Experience for its Utilities’ Functions

  5. Town of Highland’s Experience for All (Governmental & Utilities) Functions

  6. Town of Highland’s Experience: How Property Tax Dollars break-out

  7. As a resident of Highland I have taxation with representation as follows: • Town of Highland • School Town of Highland • North Township • Lake County Public Library • Lake County Solid Waste Management District • Lake County • State of Indiana

  8. Rates of Return and Horizontal Inequity • Town of Highland • 6.10% of Income Tax Base • 4.86% of Lake Co. Population • 4.2% of All Prop Levies • 68.3% rate of return 31.7¢ of each income tax dollar paid subsidizes six other communities

  9. Rates of Return and Horizontal Inequity • Town of Munster • 7.00% of Income Tax Base • 4.44% of Lake Co. Population • 5.9% of All Prop Levies • 84.9% rate of return 15.1¢ of each income tax dollar paid subsidizes six other communities

  10. Rates of Return and Horizontal Inequity • Town of Griffith • 4.00% of Income Tax Base • 3.58% of Lake Co. Population • 2.9% of All Prop Levies • 72.9% rate of return 27.1¢ of each income tax dollar paid subsidizes six other communities

  11. Rates of Return and Horizontal Inequity • Town of Schererville • 7.50% of Income Tax Base • 5.13% of Lake Co. Population • 5.4% of All Prop Levies • 72.0% rate of return 28¢ of each income tax dollar paid subsidizes six other communities

  12. Rates of Return and Horizontal Inequity • Town of Dyer • 4.00% of Income Tax Base • 2.87% of Lake Co. Population • 2.7% of All Prop Levies • 67.4% rate of return 32.6¢ of each income tax dollar paid subsidizes six other communities

  13. Rates of Return and Horizontal Inequity • Unincorporated • 9.54% of Income Tax Base • 8.37% of Lake Co. Population • 4.9% of All Prop Levies • 51.8% rate of return 48.2¢ of each income tax dollar paid subsidizes six other communities

  14. Rates of Return and Horizontal Inequity • City of East Chicago • 4.60% of Income Tax Base • 6.69% of Lake Co. Population • 13.4% of All Prop Levies • 291.3% rate of return Each income tax dollar paid gets a return of $2.91 from 13 outside communities.

  15. Rates of Return and Horizontal Inequity • City of Whiting • .90% of Income Tax Base • 1.06% of Lake Co. Population • 2.5% of All Prop Levies • 273.2% rate of return Each income tax dollar paid gets a return of $2.73 from 13 outside communities.

  16. Rates of Return and Horizontal Inequity • City of Gary • 15.61% of Income Tax Base • 21.2% of Lake Co. Population • 21.6% of All Prop Levies • 138.4% rate of return Each income tax dollar paid gets a return of $1.38 from 13 outside communities.

  17. Rates of Return and Horizontal Inequity • City of Hammond • 14.31% of Income Tax Base • 17.14% of Lake Co. Population • 14.7% of All Prop Levies • 103.1% rate of return Each income tax dollar paid gets a return of $1.31 from 13 outside communities.

  18. Rates of Return and Horizontal Inequity • Town of Winfield • 0.5% of Income Tax Base • 0.47% of Lake Co. Population • 0.6% of All Prop Levies • 127.2% rate of return Each income tax dollar paid gets a return of $1.27 from 13 outside communities.

  19. Rates of Return and Horizontal Inequity • Town of St. John • 2.20% of Income Tax Base • 1.73% of Lake Co. Population • 2.3% of All Prop Levies • 106.2% rate of return Each income tax dollar paid gets a return of $1.06 from 13 outside communities.

  20. Possible Responses • A Fair Solution: Apply Income tax to Levy common to all: The County/State Levies • Apply the approximately 78 million that a 1% tax would raise to the one common property levy for which all residents are represented - the County/State Levies adjusted for Health Departments and related differences

  21. Possible Responses • But how about something that is more than fair how about something that is Just! • A Just Solution - New Formula: Allow in some proportion some to stay where collected & some per capita-based distribution Consider the following examples…..

  22. A pool for the 78 million is formed with 50% distributed according to income tax base and 50% based upon population see the smoothing effect!

  23. A pool for the 78 million is formed with 55% distributed according to income tax base and 45% based upon population.

  24. A pool for the 78 million is formed with 60% distributed according to income tax base and 40% based upon population.

  25. “For Democracy is a method of finding proximate solutions to insoluble problems.” Reinhold Niebuhr

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