Lawmakers eye property tax relief in 2020 (updated)

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Local News

January 8, 2020 - 11:26 AM

State Rep. Kent Thompson talks about trying to lower property taxes in the state at the Allen County Commission meeting Tuesday. REGISTER/ERIC SPRUILL

Area legislators briefed Allen County commissioners Tuesday on what issues they expect to see rise to the top this legislative session, which begins Monday.

Sen. Caryn Tyson, R-Parker, joined Representatives Kent Thompson, LaHarpe, and Kenneth Collins, Frontenac.

One of the main topics during the discussion involved property taxes. 

Thompson said the state was considering reviving the Local Ad Valorem Tax Reduction, which would lower property taxes statewide. 

In the past, the state transferred 3.63% of total retail sales from the state general fund into the LAVTR fund.

The funds were distributed to counties and municipalities with the exception of schools. Local governments identify the LAVTR payments as a revenue source and the payments offset what would be financed through local property taxes on a dollar-per-dollar basis. 

The program ended in 2000, at which time it provided nearly $58 million to local governments.

The program has not been funded at all since 2003.

Thompson, who was an Allen County commissioner at the time the funding was withdrawn, said it left everyone scrambling for money, when the LAVTR was dropped. 

?It helps local government tremendously. It is a state-funded program that tries to reduce local property taxes. When they removed that they (counties) to come up with local tax dollars,? Thompson said.

 

State Sen. Caryn Tyson speaks with county residents Tuesday at the Allen County Commission meeting. 

 

Humboldt city administrator Cole Herder questioned the LAVTR fund saying, ?the only way it  would work is by creating budget problems at the state level.?

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