(WSBT) Politicians running in Indiana are trying to accomplish two things when it comes to property taxes: make local governments less reliant on property tax money, and lower the amount homeowners are paying.

Steve Downey of South Bend asked, if passed, "How soon could the governor's property tax plan be implemented?"

"The status quo is not tolerable and we must act to fix it,” Indiana Governor Mitch Daniels said in a televised speech.

Gov. Daniels' proposal would lower Indiana property taxes by raising the sales tax 1 percent, and using a state budget surplus.

The governor wants taxpayers to see relief by their May 2008 bill. But at a local level there's concern about the logistics of making it happen that quickly.

“We have to plan for the worst, and hopefully we will be able to respond to the challenges that are created,” said St. Joseph County Treasurer Sean Coleman.

Coleman estimates there are 3,000 property tax bills the county mailed out that have been returned. That's one issue his office faces.

Another issue: Early next year the county must send homeowners rebate checks, and in the spring a new credit will be in place for the May property tax bill.

Coleman doesn't want a repeat of this year where homeowners were given one tax payment for the entire year instead of two.

“We hope that the legislature will act swiftly if there are considerations that they do plan to enact, but you just never know,” Coleman said.

“I'm very optimistic that we will have success in this short session,” said Sen. John Broden (D) South Bend.

Broden is a member of a bi-partisan tax committee.

“Certainly parts of the governor's plan will undoubtedly be part of the final legislative compromise that goes forward,” Broden explained. “But this will sort of be a process where there will be a lot of different ideas.”

The governor believes those ideas can come together so homeowners are paying less by May.

The next legislative session starts in January and ends in March.
A spokesperson for Governor Daniels says if a property tax plan is passed they could start collecting the increased sales tax money in April, and then pull money from the general fund anticipating more sales tax money coming in later.

That could provider homeowners relief in time for their May bill.