Errington votes against Republican tax hike on Hoosiers, ‘What’s being sold as property relief is deceptive’

Today, Indiana House Republicans passed Senate Bill (SB) 1 with an amendment that will potentially increase Hoosiers' local income taxes by $1.1 billion annually while cutting police, fire, Emergency Medical Services (EMS) and public school services by $1.4 billion over three years. 

While the bill was pushed through with very little time to review the possible fiscal impact, it's clear that SB 1 will provide minimal property tax relief to Hoosiers. Republican leadership told Hoosiers it's time to "tighten our belts" while discussing this legislation, despite House Democrats' concerns that SB 1 will choke the life out of vital services provided by local governments.

State Rep. Sue Errington (D-Muncie) issued the following statement after voting "no" on SB 1:

“This bill isn’t a tax plan - it’s a tax scam. What’s being sold as property tax relief is deceptive. Even if you are a homeowner, you're likely to see little to no benefit, and that's only based on statewide averages. There’s no guarantee those savings will actually show up in your mailbox.

“And for renters, there’s nothing. Absolutely no relief. In fact, many will end up paying more through higher local income taxes, just to keep basic community services like police and fire departments functioning.

“I’ve been hearing from my city and county councils who are deeply concerned. Without a reciprocal replacement for the lost revenue, this bill leaves local governments scrambling to plug budget holes - and that’s not just bad policy, it’s irresponsible. If the state is going to take away this funding, it has a duty to replace it. Don't make our towns and cities dig themselves out of a hole that the state created.

“To make matters worse, we’re voting on all of this without even knowing our state’s financial future. Next week’s state revenue forecast could bring news of even more cuts. Rushing through legislation that destabilizes local budgets before we’ve seen that forecast is shortsighted and potentially devastating.

“Our communities deserve better than political theater. They deserve sound fiscal policy that doesn’t gut the services they rely on daily.”

The bill now heads back to the Senate for a concurrence vote. During the House session on Wednesday, April 9, Gov. Mike Braun signaled that this was the Indiana GOP's final property tax plan, despite House Democrats still working to make the bill better on the House floor via amendments, which were all voted down by the majority.