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Star - indiana rural counties get bigger benifits from taxes 1-13-09

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Star - indiana rural counties get bigger benifits from taxes 1-13-09

  1. 1. indystar.com | Printer-friendly article page Page 1 of 1 January 13, 2010 Study: Indianas rural counties get bigger benefit from taxes By Mary Beth Schneider mary.beth.schneider@indystar.com Indianas rural counties might want to send a big thank you to urban counties. A new study by the Indiana Fiscal Policy Institute shows that urban counties get back fewer tax dollars from the state than they generate, while rural counties reap the benefits. The study, which looked at tax allocations by county in calendar year 2008 and fiscal year 2009, showed that of the $13.7 billion in state tax revenue allocated to counties, more than a third was paid by taxpayers in the Indianapolis metropolitan counties. Those counties got back only about 28 percent of state expenditures. Of the states 92 counties, the 46 considered "metropolitan" paid 82.5 percent of taxes, while getting back 76.7 percent of revenue. The top 10 donor counties, the study found, were Vanderburgh, Hendricks, Hamilton, Bartholomew, Monroe, Dubois, Marion, Steuben, Clark and Kosciusko. The top 10 recipients, getting back more dollars than they paid in, were Cass, Sullivan, Parke, Miami, Clay, Union, Crawford, Perry, Jennings and Jefferson. Legislators from rural districts frequently complain in the Indiana General Assembly that the urban counties, and Marion in particular, get all the attention. That resentment was particularly strong as the state put together a funding package for Lucas Oil Stadium and the Indiana Convention Center. But John Ketzenberger, president of the Indiana Fiscal Policy Institute, said the report is evidence that lawmakers should consider before making such complaints. "The numbers speak for themselves," he said. "The fact is urban counties like Marion, Allen and Vanderburgh and others essentially subsidize more rural counties," he said. The study, the first of its kind in Indiana, was released Tuesday at a Statehouse news conference by Ketzenberger, as well as Michael Hicks and Dagney Faulk of the Ball State University Center for Business and Economic Research, which conducted the research.http://www.indystar.com/apps/pbcs.dll/article?AID=/20100113/NEWS05/1130343/1008/L... 1/13/2010

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