Mar 12, 2008 6:45 pm US/Central
Indiana Tax Cap May Destroy Community Financially
WHITING, Ind. (CBS) ―
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Whiting's Pierogifest would not be affected by budget woes brought on by tax caps.
CBS
People in Whiting, Ind., are concerned that the city could go out of business. They say a law on the table in the form of a tax cap might destroy the community financially.
As CBS 2 Northwest Indiana Bureau Chief Pamela Jones reports, the mayor says the plan would put city jobs and services in jeopardy.
Donna Strickland has lived in Whiting for 22 years and says skyrocketing property taxes here have left many of her bakery customers needing some dough.
"I mean I've been with the company now 15 years and all we want to do is be able to survive out here," she said.
Indiana House Bill 1001 was aimed at giving residents a break by capping property taxes at 1 percent of assessed value on owner-occupied homes, 2 percent for rental properties and 3 percent for businesses.
But those businesses include oil giant British Petroleum. It provides about half of Whiting's tax base and the planned tax cap would siphon almost a quarter of the city's budget.
And the total revenue potentially lost looks even worse.
"The bill actually reduces our revenue by, depending on what set of numbers you look at, up to 65 percent," said Whiting Mayor Joseph Stahura.
The mayor says the party would continue for the city's famous annual Pierogifest because it's budgeted separately, but adds, "Whiting could lose city workers who help keep the streets clean."
Or those who keep the streets safe.
"I'd have to pick on who's left," he said.
But the town is fighting back on a Web site -- up since Sunday – called SaveWhiting.com.
It offers an online petition.
That, and a postcard campaign, are drawing thousands of supporters.
The mayor hopes that support will help sway Indianapolis lawmakers.
The mayor says a $4 billion expansion plan at BP could provide some relief for the city. He is going to the statehouse in Indiana on Friday to beat the midnight deadline when the session closes.
(CBS 2 and the Post-Tribune are news partners covering stories in the communities of northwest Indiana. Send story tips to tips@cbs2chicago.com. (© MMIX, CBS Broadcasting, Inc. All Rights Reserved.)
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