The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-09-22
FIX STATE
TAX RATE
e CENTS
Officials Decline to Cut Levy
8 Cents as AntiCI-
pated.
FIVE CENTS REDUCTION
$3,0O0,000 Balance il
Treasury Expected.

Declining, through fear of subse-
ouent embarrassment to reduce the
state tax levy to % cents, as was
deemed entirely feasible by persons
familiar with State finances. lead
ers of the Indiana administration
met today ami ordered scent cut
in the 1927 State levy, making the
1927 rate 23 cents.
Even with the scent cut State
leaders anticipate balance of nearly
S3,OO0,OOO in the treasury when the
incoming fiscal year ends on Sept
so. 1927. The G-cent cut, which. was
advocated by many who work ed on
the levy problem, would haze re-
duced this balance about 100000.
still leaving plenty at the end OF
the next fiscal year to tide the
State over until the following tax
settlements.
Pay i'm Less, Belief
In the face of these facts 1t was
declared by those who met that
Hoosier taxpayers will pay in ap-
proximately $2,50O,00O less next year
than during the current year.
In placing the levy, administration
leaders paid no attention to an item
of nearly $1,000,000 which will be
returned to the State general fund
at the close of the present hscai
wear. a week hence. This money
will be available for the States use
during the coming fiscal year and
will actually reduce the needs that
amount.
All reductions were confined TO
the general fund levy, which has
stood at 1871 cents on every $lOo
worth of taxable property. The com
ing general fund rate will be l3.l
cents. The general fund now com
prises several former distinct funds
all of which were combined at the
last Legislature on insistence OF
Governor Jackson, to permit Juggling
and the retirement of an enormous
State debt contracted during previous
Republican administrations. From
the general fund disbursements are
made for all benevolent, penal and
educational institutions; the high
way commission. vocational educa-
ton and the agricultural experiment
station.
Levies Nndisturbed
These levies were undisturbed:
State school fund, cents; soldiers
memorial fund, mills; teachers pen
sion fund, u cents; Dunes Park
fund, 2 mills; State forestry fund, u
mill, and the agriculture board fund,
21a mills.
The 23-cent levy was based on a
total State valuation this year Of
$5,S07, ,S46,267, which is about $S5,
600, 900 greater than last years total
Applied to this total, the new levy
is expected to raise $12, ,206,S96 This
years 2S-cent levy raised $14,760,9S9
and it was on these figures that the
State administration relied for it's
statement that about $4,000, 900 would
be saved.
Total expenses for the coming
fiscal year were figured at about
$26,000,000 by State Auditor L. S.
Bowman. This included appropria~
tions of s24,353, 800, expense of the
1927 Legislature of $4,000 and mis-.
cellaneous expenses of more than
$1,000,000.
More Gas Tax
In, addition to the inevitable gorg-
ing Of next years balance because
Of refusal to make the reduction 6
cents instead of 5, the general fund
will be boosted further through the
return of unused appropriation and
an estimated increase of more than
$1,000,000 in gasoline tax receipts.
During the past year the gasoline
tax department collected $75S5,651.
Through increased consumption this
will gain one-sixth, 1t has been es-
timated. Receipts from sources
other than taxes are expected to
amount to about $5,000,000.
The State poll tax was fixed at
$1.50, so cents for State school pur.
poses and 81 for revenue.