Eric Bradner of the Evansville Courier and Press has an excellent report on recent property tax action in the General Assembly. Some additional information concerning the property tax aspirations of the minority House Republicans is available from Niki Kelly’s report in the Fort Wayne Journal Gazette.
The basics:
Shifting school operating costs to the state. (SB 1). The Senate couldn’t act on a related matter – funding the shift – because revenue bills have to originate in the House of Representatives. A bill pending in the House includes a sales tax increase from 6% to 7%. (HB 1001).
Eliminating property taxes as a source of revenue to pay for the state forestry fund and the state fair (SB 14) – small potatoes, but helps get the State off the local property tax rolls.
Extending the deadline for filing for homestead exemptions from June 11 to October 1. (SB 15)
House Republicans are pitching a plan to amend the Constitution to prohibit property taxes on homesteads – business and rental property could still be taxed. They also want to amend the Constitution to make State funding of school operating costs permanent.
Overall, the House Republicans listed 10 goals to major property tax change; nearly all are identical to Daniels’ with a few exceptions.
For instance, while the governor wants to impose a cap on local government spending, the House Republicans also think the state should abide by its own spending cap.
Also, under the GOP proposal, all future school construction would be funded through local option income taxes instead of property taxes.
[tags]property taxes[/tags]
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