Gary committee hears competing views as ordinance to bar liens on rental properties is discussed

At a Gary Common Council Planning and Development Committee meeting, Councilman at large Darren Washington introduced CPO 202602, an ordinance that would bar the city from placing liens on rental properties for unpaid sewer and sanitation charges. The committee took public comment but did not vote; the item is scheduled for consideration at the next full council meeting.

Public commenters offered conflicting views on whether municipal sanitation and stormwater charges function as user fees or as taxes when they appear on property bills. John Allen, a resident who addressed the committee, said the ordinance is legally permissible but warned it could be poor policy that “would drive up rent rates” and push landlords to demand larger security deposits. Allen also stressed the legal distinction between taxes and fees, saying the attachment of a charge to property can raise constitutional issues: “I remind the council that it's a difference between taxes and fees,” he said.

Another resident, Jim Noaki, urged the council to consider how some local fees are collected. Noting that the Gary Sanitary District’s storm-water and development charges “appear on your tax bill,” Noaki said, “you can pay your taxes but not pay those two fees. And where do you think your property ends up? It ends up on the tax sale.” He argued that enforcement practices that place those items on tax statements make them function like taxes subject to Indiana constitutional limits.

Andy Young, also speaking as a member of the public, argued the sanitation charge is a user fee tied to service received by tenants, not property owners, and said enforcement should follow the user rather than the landlord’s parcel. “The landlord is not getting any use of that service,” Young said. “It shouldn't be a lien on the landlord's property.” He referenced a statement by a sanitation-district representative, Mrs. Henry, that the district treats the charge as a utility fee.

Committee members did not debate the public comments during the meeting. Chair Darren Washington said there were no council questions and stated the ordinance will be taken up at the next Gary Common Council meeting. The committee then adjourned.

The proposal could change how unpaid sanitation and sewer charges are enforced against rental properties in Gary. Supporters said it would protect landlords who do not receive the service, while opponents cautioned that shifting enforcement could lead to higher rents, larger deposits or other unintended consequences. The committee record shows public concern over whether some municipal charges listed on tax statements function as taxes in practice; those questions were not resolved during the session.