CLARKSVILLE, Ind. (WDRB) -- Hoosier homeowners who pay zero in property taxes should have to pay a minimum amount for public services, two Clarksville leaders say.
Clarksville schools superintendent Kim Knott and Town Board president John Gilkey want to study the issue further, perhaps with the help of auditors.
But right now, it appears there's little in state law to back them up.
Homes in Clarksville aren't worth as much for taxing purposes as in the past.
Those lower values mean less money for Clarksville schools and the town government.
"When I would pull up some of those addresses, I found that some of those homeowners were billed at a zero tax rate," Knott said.
Knott found 77 homeowners in the school corporation pay zero in property taxes, all in accordance with the law.
"I started thinking, surely someone has to pay taxes, even if it's a minimal amount on an assessed value. And that's how the process started," Knott said.
Her research found homeowners who take advantage of several deductions to reduce their property tax bills to zero.
Indiana law allows deductions from the assessed value, including "homestead" credits for a primary residence and exemptions for veterans, the disabled and the elderly, Clark County Auditor Monty Snelling said.
When the deductions exceed the property value, the tax bill is zero.
Certain valuations of commercial property -- and the taxes paid by its owners -- also can reduce the tax rates, Snelling said.
But Knott and Clarksville town board president John Gilkey believe those with zero bills should have to pay if possible.
"It's a tough argument to sell," Gilkey said.
They estimate it costs the town more than $235,000 a year and the school district between $32,000 and $42,000 in lost tax revenue each year.
"$42,000 just about pays the salary for a teacher in my district. So you multiply that over a period of time, and you've got a significant amount of revenue," Knott said.
The Clarksville school corporation is in better financial shape going into its 2012 budget year than in past years, when school board members laid off teachers and closed a school.
"Those same people are using police department services (and) fire department services. There should be some minimum amount that everyone ought to be paying to help defray those costs," Gilkey said.
"It's a double-edged sword," Gilkey added. "But, as long as everyone is paying a minimum and their fair share, I think we're going down the correct road. We want to look and make sure everything is the way it ought to be."
We didn't find homeowners eager to talk about this. Many are just learning of the idea this week.
What's next?
Knott and Gilkey will research to see if state law allows a minimum property tax.
They may also hire auditors to analyze current finances and make sure those who claim deductions are getting them properly.
Copyright 2012 WDRB News. All rights reserved.
Clarksville school superintendent Kim Knott
Clarksville town board president John Gilkey
