FORT WAYNE, Ind. (WOWO): The Fort Wayne City Council heard a lot of negative feedback on the proposed bill to eliminate the personal property tax businesses pay on new equipment on Tuesday night.
Chief Financial Officer of the Allen County Public Library David Sedestrom told the council his opposition to the bill is the same as it was for the failed annexation attempt this year – the library would lose money.
“Revenues for local government agencies are going to be cut dramatically,” Sedestrom said. “During the annexation, we were looking at a 780,000 dollar loss. This is going to be a $2.5 million loss.”
Mayor Tom Henry says the city of Fort Wayne could lose $15.4 million and other public entities could also lose millions.
RELATED: Fort Wayne Mayor Henry raises concerns over business personal property tax
Former Councilman Tom Smith says the proposal would hurt schools.
“Clearly this would harm Fort Wayne Community Schools and probably other public school systems in Fort Wayne, Allen County,” Smith said. “Hurting schools, hurts quality of life.”
Fort Wayne Community Schools could lose up to $8 million. Homeowners who haven’t reached the property tax cap would see a property tax increase that would collectively come to $7 million.
Councilman Jason Arp introduce the bill because he said it is needed to level the playing field between businesses.
RELATED: Fort Wayne councilman set to introduce resolution ending taxes on new business equipment
The city council will discuss the bill again at 5:30 p.m. Tuesday, Sept. 20 at Citizens Square.
