It's as predictable as the geese flying south for the winter: the mayor submits a proposed annual budget for the following year, and the questions begin. Why is the budget so large? Where does a11 the money go? What can we do to ease the tax burden? These issues are not simple ones, but one thing is clear: Hammond taxpayers would pay less property tax if Hammond were given the freedom to tax certain retail items and services.
So, where does all the money go? A full 70% of the entire city budget goes to one thing: public safety. Only significant cuts in the police and fire departments would have any discernable affect on the tax burden, but such cuts would be unwise. Hammond is proud of the job its professional police and firefighters perform, and we must avoid hamstringing these critical departments.
The remaining 30% of the city's budget goes to fund all of the other departments, including Parks, Streets, Environmental, Code Enforcement, Building Department, Human Relations, the Mayor's Office, etcetera. The city's already tight budget is further strained by sky-rocketing health care costs. The ever-increasing cost of health care is a national problem, being faced by cities all around the country, not just Hammond.
If, then, we are to lessen the tax burden shouldered by Hammond residents, we must look to alternative solutions. One such solution is a program I have spoken of before called, Hometown Matters. This plan, which must be approved by the state legislators, allows local governments like Hammond to rely less on property taxes and more on local taxes applied by the local government. Among the options open to cities under this plan are sales taxes, hotel taxes, and food and beverage taxes.
The beauty of Hometown Matters, as it would work in Hammond, is that many taxable items are those purchased in large part by Illinois resident. In other words, every time an Illinois resident bought cigarettes, fireworks, or gas in Hammond, they may be helping lower Hammond's tax burden. For any Hammmondite who has had to wait in a long line for gas or cigarettes, you understand the tremendous benefit that this plan would bring.
Currently, all sales taxes for these items go not to Hammond, but directly downstate to Indianapolis. By capturing these taxes for ourselves, we could earmark them for budgetary commitments, thereby directly reducing the amount of property taxes needed to run the city of Hammond.
If you believe, as I do, that Hometown Matters offers a valuable plan to reduce Harnmond's taxes please contact your State Representatives and State Senators. Ask them to fully support Hometown Matters in the 2097 General Assembly Session. It's time to empower ourselves and get our taxes under control.
To contact your legislators, do one of the following:
Visit http://www.in.gov/apps/sos/legislator/search/ to enter your zip code and find out who your legislators are.
OR
Call (800) 382-9842 to find out how to contact your Representative.
Call (800) 382-9467 to find out how to contact your Senator.
