INDIANAPOLIS — Mayor Joe Hogsett wants to give homeowners a tax credit next year as Marion County residents are getting hit with high inflation and higher property taxes.
The $27 million tax relief proposal is part of the proposed 2023 fiscal package Hogsett introduced to the City-County Council on Monday night.
"While the city does not control the price of consumer goods," Hogsett said, "we can ensure that the smart fiscal strategy that we have followed benefits residents at a time when they are hurting."
Hogsett is proposing a $1.46 billion budget plan plus additional spending from federal COVID relief and other sources.
He wants to give an automatic one-time $150 credit on the 2023 tax bills for homes worth $250,000 or less. Homes worth up to $400,000 would receive a $100 credit.
Renters, landlords, business owners and residents with homes valued at more than $400,000 would not receive a credit. The tax relief program will be funded with federal money from the American Rescue Plan.
"Those who are not homeowners will still benefit from programs that provide legal assistance and housing navigation to those facing eviction," Hogsett said. "Since the onset of the pandemic, we’ve deployed more than $150 million in rental assistance."
Most homeowners are already seeing higher tax bills as Central Indiana property values have risen sharply in recent years.
The assessed value of an average home in Marion County of $176,000 in 2021 is jumping to $225,000 in 2023, according to Hogsett's office. That's a 27% increase.
The property values are rising even though the economy has seen a 9% jump in inflation, according to Hogsett's office.
Hogsett's 2023 budget proposal continues last year's three-year plan to expand violence-reduction initiatives, including the hiring of 50 new community Peacemakers; more than 200 Indianapolis Metropolitan Police Department officers and new investments in mental health services, prisoner reentry programs and hunger relief.
The proposed budget would spend another $1.16 billion over five years to improve streets, bridges, sidewalks and trails.
Contact WRTV reporter Vic Ryckaert at email@example.com or on Twitter: @vicryc.