Muncie mayor talks about new taxable property – but not potential property tax losses – in annual speech

Muncie’s mayor touted new housing in the city in his annual “State of the City” speech.  As IPR’s Stephanie Wiechmann reports, he mentioned how much more taxable property the city has, but did not mention tax relief efforts at the Statehouse that could undo much of that progress.

As part of the “greatest hits” nature of every “State of the City address,” Muncie Mayor Dan Ridenour tallies wins beginning with his first year in office in 2020.  This year, as in past years, he focused on housing.

Ridenour said with apartment complexes, townhomes, infill housing, and a new Storer Woods subdivision, the city has put in 489 new housing units, with hundreds more planned.

He says selling city-owned lots, which aren’t taxable, to those who pay taxes is good for the city budget.

“Now, developers own those, they’re paying taxes, and that helps our general fund, which makes the city council happy.  But also makes me happy.  And it should make all of you happy, because that’s additional tax base, not increasing taxes.”

What Ridenour’s speech did not mention is the potential for Muncie, along with all other cities and counties, to lose significant amounts of property tax revenue as a tax relief plan is negotiated at the Statehouse.

Read More: Delaware County Council opposes governor’s property tax relief plan

Under Governor Mike Braun’s original plan, Muncie would lose $2.4 million dollars in the first year, with more each year after.  A significantly smaller relief plan was passed by the Senate and is being discussed by the House, but Braun has said that version isn’t broad enough.

Read More: Gov. Mike Braun again highlights property tax relief in invite-only roundtable

When asked at Monday’s city council meeting how Muncie would weather those losses, Ridenour said he and the council would “all have to get together” to figure out the best method.

Stephanie Wiechmann is our Managing Editor and “All Things Considered” Host.  Contact her at [email protected].