Senate Bill 39 - Referendum Property Tax for Parks

Information provided by Michael Klitzing, Carmel Clay Parks & Recreation.

Over the past year, Carmel Clay Parks & Recreation (CCPR) has been exploring opportunities to secure a long-term capital funding source for parks, especially for capital repairs and replacements. As part of this effort, we have been talking to our local delegation to see if there is a possible path for special legislation. One of the ideas that was floated was the ability to have a referendum, similar to what is available for schools, dedicated to such projects.

Fast forward, Senator J.D. Ford (D), who represents part of Carmel, introduced Senate Bill 39 to grant such authority. Based on recent conversations with members of the majority party, there is no prospect for this bill to receive a hearing, making it effectively dead on arrival. CCPR continues to lobby our local delegation and leadership to encourage a new dedicated funding mechanism for parks, but this is a heavy lift during a session that promises to have a strong focus on cutting taxes.

Options that have been floated by CCPR include: (1) the referendum option, (2) allowing at least a portion of the park district special benefits tax currently available under IC 36-10-3-19 (for Counties, Cities & Towns) or 36-10-7.5-17 (for Townships) to be outside a community’s maximum levy , or (3) the ability to create a true special taxing district similar to Illinois. It appears leadership is currently focused on allowing some local units of government the ability to raise Local Income Taxes to increase available funding, which we have not discouraged. CCPR has expressed the importance of also considering a dedicated funding source for park capital projects. As we all know, if the funds flow unrestricted to the General Fund of our municipalities, there is no guarantee the parks and recreation department will receive anything.

If a new dedicated funding options appears to have a potential path forward this legislative session, we will keep you posted. If you have any questions, please contact Michael Klitzing at mklitzing@carmelclayparks.com.

IPRA members are encouraged to talk to your local delegation to identify capital funding challenges you are experiencing and express the need for dedicated funding for parks. Quality of life and health communities are key to the growth and economic development of our state and communities.