Governor Daniels stands next to an Elkhart homeowner while visiting the city to promote his plan for property tax relief, Wednesday, Oct. 24, 2007. (WSBT photo)
Story Created:
Oct 24, 2007 at 1:13 PM EDT
Story Updated:
Oct 31, 2007 at 9:40 PM EDT
(WSBT) Indiana Governor Mitch Daniels hit the road Wednesday to promote his plan for property tax relief.
He says it could cut the average taxpayers' bill by one third.
People on both sides of the aisle are calling it a good start. But there are still concerns about it and the plan's effect on local government. That's why the governor is on the road, taking his plan to the people.
Wyla Brooks says she worries about the day she'll have to decide between buying her medicine or paying her skyrocketing property tax bill.
"And if it kept going up, I'd have to do without my medicine,” Brooks told WSBT News.
That's why Wednesday, Governor Mitch Daniels chose Wyla's house as his backdrop to promote a property tax relief plan he says will cut bills, on average, by 30 percent.
"Wyla's house is very, very typical,” Daniels said.
Homeowners' bills would be capped at 1 percent instead of 2 percent; rental properties would be capped at 2 percent instead of 3 percent.
And public schools would be funded entirely by state taxes instead of local property taxes.
House Speaker B. Pat Bauer (D) says he's not so sure about that aspect of the plan.
“The only problem is, is this a loss of local control?” Bauer asked.
The governor says no.
"The state is already paying 85 percent of school operating costs and 20 percent of transportation costs,” Daniels explained. “We're just talking about picking up the rest of the tab.”
But that's not the only concern about the governor's plan.
Critics also worry about the effects of the proposed increase in sales tax — from 6 percent to 7 percent.
It would generate $928 million more a year; but at what cost?
"The sales tax does hit moderate and low income harder than the wealthy,” Bauer said. “So we want to make sure the relief is balanced.”
"The people we're most concerned about are low income people or fixed income people, senior citizens and others, and that's where the worst burden of the property tax problems of today is falling,” Daniels explained. “There may be no solution that everyone finds ideal, but to me, this was the fairest.”
Republican leaders are embracing the governor's plan; they're already planning on introducing ten bills in the statehouse to help it move forward.
Democrats also say this is a reasonable starting point. Bauer is cautiously optimistic.
