Commenter Eric Schansberg asks,
"Why does Lake County put up with this? I'm editing the next issue of the IPR-- on property taxes-- and have run up against the freakish example of Lake County's use of property taxes."The answer is multifaceted. First of all, historically, the Standard Oil refinery and the steel mills paid all the taxes in Lake County. Homeowners paid very little in taxes, mostly because of the way that homes were assessed. Back in the '60s, when Standard and the mills were making money hand over fist, that was just fine. They paid the taxes to keep labor peace with their unionized workforce that largely lived in these communities (Whiting, Hammond, East Chicago, Gary).
This is also why Lake County doesn't have a COIT. We haven't needed it, as long as the corporations paid all the taxes.
So the first chink in the armor was the lawsuit that challenged how homes were assessed. True value assessment got rid of the sham called depreciation, which essentially put all those formerly untaxed homes in the Big 4 communities back on the tax rolls. True value also switched the tax burden to faster appreciating residential property from slower appreciating commercial property.
The second chink in the armor was global competition. The steel mills were bankrupt, and the successor companies to Standard (Amoco, then BP) were essentially so. Because of their financial hardship, the big corps got together and got the general assembly to pass HB 1858, which significantly lowered their assessments and tax liability. The rumor I've heard is that BP's annual tax liability to Whiting was cut by $20M per year just from this one bill!
None of these changes in and of themselves should result in a higher tax bill. They should just result in less revenue coming into the government. The city governments should have streamlined and eliminated services, consolodated, etc.
But they didn't. They just started jacking up their levies.
Why do people accept these higher levies? The demographics of Lake County is largely Democrat. The people that they vote for, being Democrats, are not the kind of people to cut government. They're the kind of people that, seeing that their levy is capped at 2%, go ahead and submit a levy well in excess of 2%!
But people are pretty pissed off here. Maybe they're ready to vote Republican. That's what I'm banking on.