DEALS AND DETAILS
It looks like there definitely is a deal reached amongst Indiana lawmakers. In an interview this morning with State Rep. Jeff Espich (R-Uniondale), the House Republican point man on tax relief, he told me that there are caps in the agreement; one percent for homeowners, two percent for rentals and three percent for commercial property. Espich says the caps will benefit Marion County as 91 percent of the residential property is assessed at more than one percent of its assessed valuation. He says Hoosiers should expect an average 25 percent cut in the property tax bills. He also says the state’s assessment system is being reformed to make it more fair and uniform.
Espich also says SJR-1, the proposal to put caps into the State Constitution is still there to make the property tax relief permanent. He adds there is a one percent increase in the state sales tax and the state will keep it’s property tax replacement credits to pay for child welfare, pre-1977 police pensions and school operation costs. Espich also says there is referendum language for school and civic construction projects.
Democrat State Rep. Terry Goodin (D-Crothersville) says while caps will help some residential property taxpayers, but there will be others who will see a tax increase if their current assessments are below one percent. He also says there is relief for renters and low-income Hoosiers. He says the assessor issue still has to be worked out, but it’s likely that assessors in townships with less than 15,000 people will be eliminated. Assessors in those in townships with more than 15,000 parcels will be subject to elimination via referendum. Goodin says the priority for Democrats was to provide Hoosiers with tax relief, but also to protect schools.
State Senator Pat Miller (R-Indianapolis) says there’s anywhere between $600-$700 million in relief. She says for her the problem with assessments hasn’t been the assessors but the assessment process and that local government reform (i.e. the Kernan-Shepard Commission report) will get addressed next session.
State Senator Tim Skinner (D-Terre Haute) says his caucus has been worried that the caps will create a shortfall for local governments.
Neil Pickett, Policy advisor to Governor Mitch Daniels says lawmakers will tackle government consolidation next session because it will be necessary to control costs. He says we are now entering a new era of taxpayer protection and it’s important not to go backwards.
Details still need to be worked out but all lawmakers say they will be able to adjourn on time tomorrow.
