(La Porte County, IN) - The governor has signed a property tax cutting bill adopted by the state legislature this week.

 

However, a local state lawmaker says what’s saved in property taxes will likely be lost from higher local income taxes.

 

Voting against the measure was State Senator Mike Bohacek, who says property owners will see a tax reduction of up to 300 dollars a year.

 

To make up for the lost revenue, he said local governments, including cities and towns, were given the ability to adopt a local income tax or increase the local income taxes now in place.

 

Bohacek said it won’t take much of a local ncome tax hike for Hoosiers to actually pay more in taxes overall.

 

“This has I would say the absolutely certainty of being an overall tax burden increase as opposed to a decrease,” he said.

 

Bohacek of Michiana Shores said the real winners are businesses from paying less in taxes on their equipment.

 

Under the measure, he said the savings will come from companies not having to pay taxes on equipment valued at less than $1 million, initially, and later $2 million. Currently, businesses are not taxed on equipment if the value is $80,000 or less.

 

As a result, Bohacek said more of the tax burden is being shifted onto residents…

 

“It’s a big windfall for the business community, but it’s being financed on the backs of regular citizens," he said.

 

He said the measure is going to cost the La Porte County government and the La Porte School Corporation roughly $1 million the first year then more in future years.

 

Bohacek said the city of La Porte will see an over half million dollar or so revenue loss the first year.