Essay # 2

Retooling our Tax Bills

So let’s begin solving our tax crisis in Indiana by fixing our tax bills.  Let’s adopt a reverse engineering method to solving our problem by starting with the form and content of our actual tax bill.

A tax bill is the closest official contact many Hoosiers ever have with their government.  Citizens may not understand what assessors, auditors, treasurers, recorders, and clerks are supposed to do.  Citizens may not know the difference between a Trustee and Commissioner, a county council and a township board, or the judge of a circuit court and a superior court.  Many don’t know what a township is, what it does, and which one they live in.  A surprising number of people don’t even know who’s supposed to come when they dial 911.  But they do know what a tax bill is and while most don’t know exactly what happens when you don’t pay your tax bill, they know it can’t be good and involves the Sheriff.

So how can we possibly talk about inspiring the masses, making sweeping changes, and reforming anything if the taxpaying citizens are so disconnected from the very government they are financing?

My idea is not new; it’s being done elsewhere and here’s how it works.  Each year the government (in our case the County Treasurer) is required to present each taxpayer an itemized tax bill.  Even if the taxpayer’s Mortgage Company or bank pays the bill, the taxpayer must get a copy.  The bill is itemized line-by-line by each taxing authority.  For example, if my bill is $ 1 and that dollar is comprised of tax levies from my city, county, township, library, school district, and conservancy district, each would be line itemed showing how much of the dollar each taxing unit is charging me.  This number would be accompanied by the total amount charged in the previous year followed by the % increase or decrease.  No need to hunt up last year’s bill, or legal notices, or phone an informed friend to see how my new bill compares to last year.  One the same line would be the contact information for the respective taxing authority (contact name, phone number, e-mail address, web URL, mailing address - whatever it takes to get in touch with the elected official(s) responsible with a question, comment, concern, complaint, or commendation).  Taxpaying citizens receive an information-rich bill which invites inquiry and promotes accountability while providing a tool to inform & educate our citizens.

We demand better service and more accountability from our favorite restaurant than we do our government.  That can’t be right.  Nothing gets solved without knowing exactly what we’re paying for, what we’re supposed to receive, and who’s responsible.

I realize one suggested solution is to eliminate real estate taxes entirely which means we would no longer receive tax bills.  I don’t think that’s likely to occur in my lifetime.  Moreover, the tragedy of this would be that the bill for local government would be buried even deeper someplace else and we’d be further from knowing how much we’re paying and where our tax dollars are actually spent.

Retooling our tax bill represents a powerful and meaningful first step towards a solution to our tax crisis.  It can’t be OUR idea; it can’t be OUR government if we haven’t a clue what it is, how it works, who’s responsible, and how much it costs.  It’s impossible to take ownership.

Before we demand special legislative sessions, State constitutional conventions, and blue ribbon commissions to solve the government “for” the people part of the equation, we need to solve the “of and by” part.   If it’s gonna work and be lasting, it’s gotta be all three – of, by and for the people.