TERRE HAUTE, Ind. (WTWO/WAWV) — Terre Haute Mayor Brandon Sakbun expresses his frustration with the state government’s recent moves.
Earlier this year, property tax cuts were made by state lawmakers with the passage of Senate Enrolled Act 1. In Terre Haute, property taxes account for more than 80% of the city services budget. Mayor Sakbun said these recent moves have done nothing but hurt them.
“They’ve found a way to give businesses their largest tax break they’ve received in decades, which lowers the fund that pays police and fire”, Sakbun said. “They’ve asked cities to pay more of their retirement while the state is not chipping in as much as they used to, keep in mind that the police and fire pension is the healthiest it has ever been. Right now, that pension could be self-funded.”
Sakbun said the state isn’t backing up their claims of making sure service employees are covered.
“They’re asking local tax payers to pay more in their pension, giving cities less, and then saying they back the blue”, Sakbun said. “Do you really back the blue? If you do, you’ll pay them a livable wage and you’ll give them the benefits they need to be able to raise their family right here in Terre Haute, Indiana.”
The City of Terre Haute recently lost 8 employees to attrition and has consolidated a number of roles. With that, Mayor Sakbun believes the current income tax will not have to be raised.
“The income taxes we have go away in 2028, so the decision we have in 2027 is to keep the 1.2% rate, which we currently have to go to the city”, Sakbun said. “We plan to keep the rate the same, not increase the rate, to be able to recoup some of what is going to be lost from property taxes.”
Sakbun went on to say the residential credits are positive, but big businesses are becoming the winners in the end.
“I think the residential tax credit is actually a good thing, I just can’t get behind handing checks right back to these big businesses who are demanding services like streets, police, and fire”, Sakbun said.
In a press release announcing the hiring freeze, Mayor Sakbun stated that a total of six city departments were consolidated to reduce overlap and trim headcount.
