Warsaw Mayor Joe Thallemer is headed to Indianapolis today with mayors from around the state to discuss a plan by Gov. Mike Pence to phase out the personal property tax on businesses.

Pence said the plan is a key part of his agenda this legislative session, but Thallemer told the Warsaw Common Council Monday night, “It doesn’t bode well when the state tells locals not to pay taxes and the city’s are left to figure it out.” He said the county would lose $10 million in revenue – 20 percent of that is the city’s share – if the governor’s proposal passes.

Pence is proposing a phase out of the personal property taxes businesses pay on equipment. Cities, counties, schools and even libraries depend on those monies to fund local services and operations. Thallemer surmised, “Businesses may think it sounds good, but that would likely mean it would shift to real estate taxes.”

Thus far, Pence has provided no details on how local governments would deal with $1 billion in lost revenue although he did say he would work to “ensure that this reform does not unduly harm local government.”

Lawmakers could approve a phase out of the tax and decide in future years how to replace the lost revenue. Republican House Speaker Brian Bosma said his caucus will also propose the cuts in the personal property tax, but he said the plan will likely give local officials some discretion.

Thallemer said he will provide information on today’s legislative meeting to StaceyPageOnline.com on Monday.