Accounting

In legalese, the term "accounting" means that somebody entrusted with funds must provide an explanation as to how those funds were used. In other words, the entrustee must "account" for all of the money. It's a pretty simple concept once you think it through.

In light of that, I will quote a blog post from Indy Tax Dollars, in full:

A little over a month ago it was announced that a move was afoot to establish a downtown Economic Improvement District which would tax property owners in the Mile Square (area bounded by East, West, North and South streets).  The funds would be used for problems not being adequately handled by current municipal budgets.

The subject is brought to mind again by an on-line IBJ story about VisitIndy (VI), and that organization’s fiscal boast.  For 2016, according to a report commissioned by VI, visitors to the city had an economic impact of $5.2 billion, and $719 million in additional state and local taxes.  (No division given as to state and local.)  This following substantial increases in previous years.

We know nothing about the report authors but we admit to a visceral suspicion about the accuracy of such glowing essays when they are being paid for by the subjects of said essays.  But let us assume the numbers are accurate.

Then, does not the question arise, "Where do all those dollars go?"  How do these figures connect with the need for downtown property owners to volunteer a heavier tax burden on themselves?  Why did the original story about the EID refer to the city as "cash-strapped?"

Why would it not be reasonable to be able to check on the amounts of dollars, and at the same time place a significant part of the burden on the most direct recipients of those revenues?

We believe this could be done by adopting something similar to our earlier suggestion of a Revenue Increment Tax - RIF. A huge proportion of that $5.2 billion comes into the city via members of the hospitality industry - food, beverage and lodging operations.

Surely the increase in revenues, at the time of a Super Bowl, an NBA All Star Game or a convention of thousands for instance, could be compared to revenues of a like period in other times for the application of an RIF plan.

Should we not make a more direct connection between revenues generated by sports franchises and the dollars handed back to them as incentives to remain here?

Very important points in a discussion that we, as a community, are notably NOT having.