Committee Votes Against Phasing Out Tax Credit

The Indianapolis City County Council’s Administration and Finance Committee voted 5-3, Tuesday, against a measure that would have phased out the Local Homestead Tax Credit starting next year.

“My colleagues and I are committed to doing everything we can to avoid property tax and fee increases. As we continue to work on the 2014 spending plan, we are taking a deep dive into the Mayor’s budget proposal to identify every possible cost saving option,” said Council President Maggie Lewis. “Our goal is to continue to focus on the needs of our constituents and remain true to their priorities for the duration of the budget review process. Every option must be considered and every department’s budget must be reviewed as we move forward.”

Mayor Greg Ballard says eliminating the credit may cost some tax payers up to $30 more a year, but believes it will save the city millions.

Ballard told WFYI last week, "We just need to simplify and make it fair. When they do that, then it creates $11-million for the city."