FORT WAYNE, Ind. (WOWO): More concerns are being raised with the proposed elimination of the business personal property tax.
“The plan does not offer any solutions to make up for the loss,” said Mayor Tom Henry in a news conference Friday. Taxes collected on business personal property total more than $51 million every year, according to the city of Fort Wayne.
Henry says if the resolution is passed, the city of Fort Wayne could lose $15.4 million and Fort Wayne Community Schools could lose $7.9 million
Even though the proposed taxes would be eliminated over time, the Mayors office says, “the plan provides for no designated mechanism to make up for the loss in revenue.”
City Councilman Jason Arp introduced the legislation. He said the government should create a level playing field for businesses. He believes targeted incentives, which he usually opposes, don’t do that.
Earlier, the Allen County Board of Commissioners said the legislation wouldn’t be in the best interest of the county.
RELATED: Allen County Board of Commissioners oppose ending taxes on new business equipment
Representatives on hand were from the city of Fort Wayne, the city of New Haven, the Allen County Public Library, East Allen County Schools and Southwest Allen County Schools.
“Hopefully City Council will hear our plea and put this aside for the time being,” said Mayor Henry.
The Mayor’s office released figures of who could be impacted by this proposal:
*City of Fort Wayne – loss of $15.4 million in annual revenues
*Allen County government – loss of $6.6 million in annual revenues
*Allen County Public Library – loss of $2.5 million in annual revenues
*Fort Wayne Community Schools – loss of $7.9 million in annual revenues
*Southwest Allen County Schools – loss of $1.7 million in annual revenues
*East Allen County Schools – loss of $1 million in annual revenues
*Northwest Allen County Schools – loss of $1.7 million in annual revenues
*City of New Haven – loss of $791,000 in annual revenues
*Homeowners who’ve not reached the property tax cap – two-thirds of homeowners countywide would see a collective increase of $7 million in property taxes
