R.I.P. SJR-8
For my friends who were hoping Senate Joint Resolution 8 would be their last best hope for the repeal of property taxes, I hate to be the bearer of bad news, it ain’t gonna happen. The Senate Republican Caucus voted 2-to-1 Thursday against moving SJR-8 to the floor for a full vote. The problem most of the Senators had with the proposal was that there was no way to eliminate property taxes without driving half the state in bankruptcy.
While proponents argue a property tax repeal could be paid for with an increase in the sales or income tax, opponents say increase business income taxes would lead to more tax avoidance and an increase in the sales tax would be passed along to the consumer.
In addition a repeal of residential property taxes could also result in an increase on business property taxes, which although now make up 37-percent of the assessed property in Indiana, they make up 53-percent of the property taxes paid.
Supporters of SJR-8 tell me they are deeply disappointed in the Senate Republicans’ decision, they are still looking for ways to eliminate residential property taxes.
In the meanwhile, the only measure on the floor for real tax reform is Governor Mitch Daniel’s plan, which is about to be run through the amendment gauntlet in the Indiana House of Representatives.
