TELL CITY, IN (WFIE) -
Indiana's property tax cap has local governments looking at other ways to generate and save money.
Officials in Tell City say their community is nearly $280,000 down in tax revenue.
In Tell City, local government officials say that they're having issues with state property taxes, and that it's deeply impacting the town's budget.
Every year, Indiana counties are assessed for their value by the state government. Then, according to value classifications, tax caps are applied, limiting the amount of money property tax-payers must pay.
"Which actually reduces the amount of property tax revenue that municipalities, like Tell City, would receive from the property taxes," Tell City Clerk-Treasurer Jenny Richter told 14 News.
Richter says the town's general fund will lose just under $280,000 this year, due to the tax caps.
"We have to come up with creative ways in order to make sure that we don't spend that money that we're not going to be getting," she said.
Richter says those 'creative ways' include reusing and recycling resources, something she says towns are doing state-wide.
Perry County Auditor Connie Berger says the county itself is losing money also.
"For the county, for our four levied funds, which is our county general fund, our health fund, property reassessment, we've lost approximately almost $200,000," Berger said.
As a result, Berger says the county has had to cut back on public services and eliminate some part-time positions.
Richter says that the most immediate effects could be seen in slower trash pick-up or street repair, and if this tax-cap trend continues, Berger says layoffs are possible.
"You hope it will never get to employees, but it could eventually, with the losses that we're getting."
Those 14 News spoke to Thursday say they don't know a quick-fix to this problem. They just hope that future state legislation will further consider the challenges of small town government.
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