Town of Griffith one step closer to joining a new township

STATEHOUSE - State Rep. Hal Slager (R-Schererville) is pleased that House Bill 1585 passed out of the House today with a vote of 66-32.  HB 1585 will allow the town of Griffith to vote by referendum to opt out of Calumet Township in Lake County. 

“Griffith is paying a large amount of taxes to a township government, without receiving very much in return,” said Rep. Slager. “This legislation will allow Griffith to move to join a township that allows for a more balanced tax to benefit exchange.”

Current law prohibits a town or city to remove itself from a township or apply to join a new township by referendum.  The city of Griffith in Lake County is partially included in Calumet Township. Calumet Township’s assistance tax rate is 20.5 times higher than the state average township assistance tax rate. HB1585 will result in lower bills for Griffith property owners and increased revenue for other government units. According to the fiscal analysis Griffith would gain $310,000 to their general fund and Griffith Public Schools Corporation $134,000.

In order for Griffith to remove itself from Calumet Township and apply to join a new township, residents must petition for a referendum, and the referendum must pass by a two-thirds margin. If the referendum passes, the town will apply to join an adjacent township.

“This bill creates the opportunity – with the necessary provisions and safeguards in place – for a municipality to relocate to another township,” said Rep. Slager. “As a former town council member, I know the difference HB 1585 will create in providing Griffith with the tools to continue to create a prosperous and thriving community.”

Without this legislation, Griffith’s township taxes will continue to go to other areas in Calumet Township outside the town limits. HB1585 would allow the town of Griffith to join a different township with a lower tax rate and one that would return more funds to the town of Griffith. HB1585 will only allow a town to opt out of a township if the township assistance tax rate meets the minimum tax threshold of 15 times the statewide average.

HB1585 is coauthored by Rep. Jerry Torr (R-Carmel) and Rep. Mara Candelaria Reardon (D-Hammond).