Monday, March 3, 2008
Bills in Legislative Limbo
With two weeks left in the session, House and Senate lawmakers head to conference committees, where final deals are brokered
IndyStar, March 3, 2008 on Property tax reform
House Bill 1001
This legislation reflects much of Gov. Mitch Daniels' proposal.
House version Applies caps on property taxes in 2009 based on assessed value. Homeowners' bill would be limited to 1 percent of assessed value, rental properties and farmland at 2 percent, businesses at 3 percent.
Senate version The property tax caps would be phased in so the full impact isn't felt until 2010.
Chances for compromise In an election year, pressure from voters is high for significant property tax relief, so the chances of Republicans and Democrats striking a compromise are good. Look for tough negotiations on the final form of the tax caps and additional benefits for low-income Hoosiers. Widest range of opinions can be found on the question of township assessors: Some want them gone, others want them to remain in urban counties, and keeping all the state's assessors is an option.
Senate version Caps homeowners tax bills at 1 percent of assessed value, rental properties at 2 percent and businesses at 3 percent.
House version Changes the cap for homeowners to 1 percent of household income, but excludes existing debt from the cap, meaning homeowners would pay for that, too, which currently makes up between 25 percent and 33 percent of the average bill.
Chances for compromise Republicans have insisted on a constitutional amendment to ensure any property tax relief is permanent. Democrats have been far less committal. Daniels has threatened a special session if a constitutional amendment is not part of a final package, but both he and House Speaker B. Patrick Bauer, D-South Bend, said they don't think it will come to that.
IndyStar, March 3, 2008 on Property tax reform
House Bill 1001
This legislation reflects much of Gov. Mitch Daniels' proposal.
House version Applies caps on property taxes in 2009 based on assessed value. Homeowners' bill would be limited to 1 percent of assessed value, rental properties and farmland at 2 percent, businesses at 3 percent.
Voter referendums are exempted for classroom-related projects, requiring them only for recreational projects like swimming pools.
All township assessors are eliminated.
Provides additional help for low-income Hoosiers by doubling the renter's deduction from $2,500 to $5,000 and increases the income tax credit for the working poor from 6 percent to 9 percent.
Senate version The property tax caps would be phased in so the full impact isn't felt until 2010.
Voter referendums required for all major building projects.
All township assessors are left in their jobs unless voters decide in a referendum to shift duties to the county assessor.
Renter's deduction increased from $2,500 to $3,000; no increase in the income tax credit for the working poor.
Chances for compromise In an election year, pressure from voters is high for significant property tax relief, so the chances of Republicans and Democrats striking a compromise are good. Look for tough negotiations on the final form of the tax caps and additional benefits for low-income Hoosiers. Widest range of opinions can be found on the question of township assessors: Some want them gone, others want them to remain in urban counties, and keeping all the state's assessors is an option.
Property tax caps
Senate Joint Resolution 1
Places caps on property tax bills into the state constitution.
Senate version Caps homeowners tax bills at 1 percent of assessed value, rental properties at 2 percent and businesses at 3 percent.
House version Changes the cap for homeowners to 1 percent of household income, but excludes existing debt from the cap, meaning homeowners would pay for that, too, which currently makes up between 25 percent and 33 percent of the average bill.
Chances for compromise Republicans have insisted on a constitutional amendment to ensure any property tax relief is permanent. Democrats have been far less committal. Daniels has threatened a special session if a constitutional amendment is not part of a final package, but both he and House Speaker B. Patrick Bauer, D-South Bend, said they don't think it will come to that.
# posted by Jeff @ 7:13 AM 
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