Credit Rating Agencies Flag Property Tax Bill For Creating “Uncertainty”

By Whitney DownardIndiana Capital ChronicleINDIANA — Experts warn that Indiana’s cities, towns and counties could take a hit to their credit rating through no fault of their own, but rather due to continued fallout from the state’s effort to curb property tax growth. But a report co-authored by Sauter flags concerns with new provisions of the wide-ranging bill, which limited local tax growth and has left some municipalities scrambling to continue providing government services. In an effort to grant counties and cities a reprieve, state lawmakers opted to revisit local income taxes. Much like how people use their credit rating to borrow against their future income, local units of government rely on these bonds to finance capital projects and operations. But the top credit rating agency said it wouldn’t take any action until 2028 when those requirements start.