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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowDowntown business owners will see a new fee on their property tax bills after the Indiana Legislature authorized and Indianapolis officials implemented the fee to fund improvements in the city’s core.
The economic enhancement district is projected to raise $4.65 million a year in taxes to pay for downtown-focused improvements and programs and fund the operating costs of a low-barrier homeless shelter planned on the southeast side of downtown.
The long road to implementing the tax began when state budget writers quietly slipped authorizing language into the state’s two-year spending plan in the closing days of the 2023 General Assembly. After opposition from some who would pay the tax—including apartment owners—erupted, lawmakers amended the law this year, creating exceptions for owners of apartments and single-family homes.
Then in August, the Indianapolis City-County Council voted to create the tax district and implement the fee, which will require property owners (except owners of apartments and single-family houses) to pay 0.17% of the property’s gross assessed value. For example, the owners of a downtown office property assessed at $5 million will pay $8,500 per year.
A board appointed by state and local officials will determine how the money is spent. The majority of the board must own property within the district.
City-County Council President Vop Osili, a Democrat, appointed Karin Sarratt, executive vice president for OneAmerica Financial, and Kameelah Shaheed-Diallo, an owner of the J. Benzal Menswear store at 22 E. Washington St. Mayor Joe Hogsett, a Democrat, appointed Greg Henneke, a downtown resident.
Gov. Eric Holcomb, a Republican, appointed four Indianapolis businessmen: Bill Browne Jr., founding principal of Ratio Architects; Jim Dora Jr., owner and CEO of General Hotels Corp.; Thomas McGowan, president and chief operating officer of Kite Realty Group Trust; and Mike Wells, president of REI Investments Inc.
Senate President Pro Tem Rodric Bray selected state Sen. Kyle Walker, R-Indianapolis. Walker worked on the initial tax legislation in the waning hours of the 2023 session.
The remaining appointee will come from House Speaker Todd Huston, a Republican.•
Check out more year-in-review stories from 2024.
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