Evening star., 1932-03-09
BY MALCOLM CUTTING.

BY MALCOLM CUTTING.
INDIANAPOLIS. Ind. March 7
! Indiana adopted IL years
apo a plan of local tax control which
has saved its taxpayers directly and
indirectly. upward of $100,0o0,000. So
simple is this plan. so democratic in
principle so powerful, that it has been
copied whole or in part by other pro-
gressive States, and might serve as
a model for the country.
Last year Indiana reduced its total
| tax levies s6.300.00o This means an
actual saving of that amount in taxes
| to be paid this year, despite an In
crease of S5,000,000 in poor relief. In
| 1880 the net reduction was $4580 900.
These substantial savings swell in
| Importance when 1t is realized they
were deducted from levies already re-
stricted by a decade of rigid control
But they fade into insignif1cance COM
pared with major savings the Indiana
plan has brought about.
The basis Of the plan is a State law
passed in 1921. which gives 10 tax
| payers in any local taxing unit, county,
| township. municipality or school divi-
sion, right to appeal budgets, levies
and bond issues to the State Board Of
Tax Commissioners.
Hearing Must Be Called.
After any budget is prepared and tax
levy proposed a public hearing of resi-
dent taxpayers must be called. II
agreement fails. any 10 taxpayers.
other than those who pay poll taxes
only. may certify to their county
auditor notice of appeal to the State
board.
The board fixes a time for hearing
in the county where the appeal origi
mated. A representative visits the
county. hears evidence for and against
proposed budget and levy and sub
mits a digest to the complete board.
Thereupon the board may approve the
proposal or order reduction.
In bond issues. subject to the same
procedure. it may approve, reduce or
deny them. In both cases decision of
the board is final
Since this law was passed. from 1921
to 1881, inclusive. appeals to the board
have brought reductions of $21,700,-
coo from budgets and levies and $32,-
100000 from bond issues. That makes
$50 100000 saved, money taxpayers
would have had to pay, currently or in
the future. had they not questioned
expenditures.
tary reductions by local officials who
realized their levies might be protested
Last year 304 appeals were made to
the State board, and on 204 reductions
were ordered.
Holds Officials to Account.
A record of that kind keeps local
taxing officials on the mark. Includ-
ing mandatory and voluntary reduc-
tions, it is estimated that Indiana tax
payers in IL years have saved S75.-
100000 to $100,000o00 by their plan
The history of this plan Is an aston
ishing sequence of vision, willful public
blindness, miraculous restoration of
sight
In 1919 a law was passed placing
certain increases in local levies under
authority of the Board of Tax Com
missioners for review. Under this law,
the board that year cut $11 ,00o, 900
| from local budgets.
In 1920, however, the General Assem-
bly, met in special session and a de-
mand for home rule" arose The right
Of any State board to review local levies
vision was removed from the law. As
an immediate result local taxes
throughout the State increased $685.
000,0 900, Al per cent.
1t took one year for the people to
realize what reverting to so-called home
rule in local taxation had cost. When
the General Assembly met in regular
session in 1921, not only was authority
restored to the Board of Tax Commits
sioners, but new power was conferred
upon the people to protest and obtain
review of budgets. levies and bond
issues.
That was home rule applied in its
proper place. 1t gave the people initial
power of tax control, because the State
board was powerless to intervene with
out direct appeal from taxpayers.
In the beginning it seemed this
limitation might nullify the beneficial
effects of the statute. Taxes continued
rising, because the people had little
realization Of the power delegated to
them and seldom availed themselves of
it.
Some new agency was required to
arouse them to attention to their own
affairs. 1t came in September, 1923,