Coalition for Homelessness Intervention and Prevention Hopes To Raise Sales Tax To End Homelessness

An Indianapolis coalition helped slash the number of homeless people in half since 2002, but is determined to wipe the problem out altogether with its innovative retail initiatives.

The Coalition for Homelessness Intervention and Prevention -- or CHIP -- released a new draft of its "Blueprint to End Homelessness" in Indianapolis. The 10-year-plan calls for a number of sweeping changes, including an increase on sale taxes. The organization proposes a new taxation in the range of one-eighth of a cent to one-quarter.

The move could generate between $9.6 and $19.3 million a year, and would only change the current sales tax slightly. Fox 59 reported that customers making a purchase of $100 would pay between $7.13 and $7.25, versus the current $7 in taxes.

CHIP representatives estimate 4,500 to 7,700 people are homeless in Indianapolis, with about 1,500 sleeping on the streets each night. They have called the proposal a "Common Cents" initiative because of its possibility for homelessness alleviation according to The Indianapolis Business Journal.

The tax increase would provide a permanent -- and immediate -- stream of money to combat the problem without having to wait to see the fruits of the fundraising efforts.

"For mere pennies per household, our community can provide housing and services for thousands of our neighbors," the authors of the Blueprint noted. "Neighborhoods will be safer when empty houses become occupied and are put back on the tax rolls. Lives will be saved."

Michael Hurst, program director for CHIP, told Fox 59 that an advisory board will oversee the money and nonprofits whose missions align with CHIP's efforts could apply for grants.

Still, the decision is up to those who might get taxed. CHIP is hosting open forums and accepting feedback on whether or not taxation is the best route in solving homelessness in Indianapolis.

"That's out there for a conversation," Hurst told the Indianapolis Business Journal. "We'll see what the conversation brings."

Should the public feedback and conversation go well, CHIP leaders plans to lobby state lawmakers in 2013 for a referendum in the 2014 general election, according to WIBC.com.

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Comments

[TNTtnt]

06:43 AM on 11/26/2011

From an Indianapolis Resident during the years the tax increases were happening. There should always be a story of what the rest of the facts are.

The original tax rate (5%) was increased years ago by a penny (to 6%) to pay for the Hoosier Dome, which was built, used by the Colts, renamed the Something Else? Dome, and then Torn DOWN, to be replaced by the Lucas Oil STADIUM, built by an ADDITIONAL penny's worth of sales tax (making it 7% now).

EVERYONE in Indy wondered where the money was going once the Hoosier Dome was finished, but the Tax Rate didn't decrease? Why did the PTB need more money to build the Lucas Oil (who is that anyway?) Stadium? As a side note, a perfectly good Arena was torn down, which could have been used for concerts or the WNBA.

And Indy wonders why they are called India NO Place or NAP Town...

[scarecro9]

03:58 PM on 11/18/2011

You will never end homeless. I really wish the solution from the government or states is always let's raise taxes. Why don't they cut funding on something else and divert that money to CHIPj?

[Your name here]

11:30 PM on 11/17/2011

Good Idea.

[Gia Marie Medina]

10:30 PM on 11/17/2011

It's absolutely ridiculous that hard-working, struggling families should have to pay more for what they buy (through a higher sales tax) to support homeless people-the majority of whom are adults that aren't elderly and don't have a disability. There will always be more and more poor people; there will never be enough money to provide for all of them. And if they'd like to waste their entire lives drinking and smoking all day instead of bothering to look for work then good for them. But they shouldn't expect anyone else to provide for them either.

[orangegenie1]

12:35 AM on 11/18/2011

Either that, or tax the very wealthy more as they are able to write off more stuff and given tax breaks. I know it varies from state to state, but so much in excess, including ones in office that maybe are not as weathy, but hold higher positions, are not immune from laundering, embezzling, or any unlawful hoarding of city or state government. I might add, not all of this is "Wall Street" per se, it's the pocketing of money for public services by officials. You see--there are freeloaders from all sides of the class spectrum, not just the poor (some relate as bums, and no-goods, though many poor are good people too --and--and--and--many do have jobs!)

[Kara E]

02:17 AM on 12/13/2011

Not every person who is homeless is that way because of drinking and smoking. That is so judgmental! 90% of Americans are 1 emergency away from becoming homeless. Many people do not have anywhere to turn should they need help. In other words they have no support system in place. They may have family or friends who either can't help or chose not to help. 20 years ago I met a young couple with a baby, I gave them some money talked to them. I brought them some baby clothes. They came to here on the promise of a job for the man, he became injured and lost that job. She couldn't find work they could not get the money together to return to their home & had no one who could help. That same couple showed up painting the numbers on the curbs on my street. I was happy to see them and talked to them again. They were doing much better & had a place to stay. Not everyone is a bum,freeloader or drunk!! Take the time to see the people for who they are, down on their luck not trash. Yes, many do have drug and alcohol problems. For which they need help. Many have medical problems or job loss etc. Be a part of the solution reach out and help your fellow man. Drop the prejudice and the world would be a much better place.

[dstephenson777]

07:29 PM on 11/17/2011

Can see the potential there...