Taxpayers file lawsuit against state property tax system

INDIANAPOLIS – Indiana taxpayers challenged the constitutionality of the state property tax system in a lawsuit filed Thursday.\nThe petition in Indiana Tax Court questions statewide assessment methods, the use of tax abatements and several other aspects of the state system.\nIt also argues that Indiana’s tax structure does not comply with the state constitutional requirement of a “uniform and equal rate of property assessment and taxation.” Multiple taxing districts can lead to vastly nonuniform bills for people living in the same county if they are in different school districts or townships.\n“This is a statewide issue,” said John Price, an Indianapolis attorney who filed the lawsuit on behalf of 11 taxpayers from each of Indiana’s congressional districts and seven taxpayer associations.\nPrice said many of the lawsuit’s plaintiffs would like to see property taxes abolished.\n“This case could ultimately be used to help accelerate that,” he said.\nSeveral taxpayers gathered Thursday at the Statehouse as Price filed the lawsuit. Mona and Dick Bimm of Indianapolis said property tax bills have gone from $2,000 to $12,000 over the last few years on the house they’ve lived in for nearly 40 years. They are so frustrated with the system that they may consider moving out of state, Dick Bimm said.\n“We’re going to vote with our feet,” he said.\nMona Bimm said government leaders don’t seem accountable.\n“People have been asking for help on this issue,” she said. “They ignored them.”\nThe lawsuit also asks the tax court to consider whether homeowner tax payments should be put toward the common school fund, which provides loans to schools. However, State Auditor Tim Berry said that no property tax revenue goes to the fund.\nThe lawsuit asks the tax court for several remedies, including overturning a recent income tax increase in Indianapolis because one of the councilors who voted on the matter was disqualified by moving into another district.\nThe suit also asks the court to void the deadline extensions ordered by Gov. Mitch Daniels that would have given counties more time to adopt local income taxes.