Story Created:
Mar 14, 2008 at 4:45 PM EDT
Story Updated:
Mar 14, 2008 at 6:42 PM EDT
SOUTH BEND — You will get a break on your property taxes, but some lawmakers say the plan is flawed.
The Indiana House and Senate voted overwhelmingly for the plan. It would cut taxes by an average of 28 percent statewide. The plan caps taxes to 1 percent of a home's assessed value.
In St. Joseph and Lake counties, there will be slightly less relief, because the tax caps will not count against those counties’ debts.
The plan would mean the average St. Joseph County homeowner's property taxes would be capped at anywhere from 1.1 percent to 1.5 percent of assessed value, depending on the township. Elsewhere in the state, taxes would be capped at 1 percent.
Some local lawmakers voted against the plan.
See how members of the House voted on the property tax relief and reform plan.
See how members of the Senate voted on the property tax relief and reform plan.
Members of both parties voted against putting the tax caps in the constitution. They said it wasn't fair to not only give St. Joseph and Lake county taxpayers less relief, but also to make that disparity permanent in the state's constitution.
See how members of the House voted on the legislation to amend the state constitution to include limits on property tax bills.
Rep. Jackie Walorski objected to placing the debt exemption for St. Joseph and Lake counties in the state's constitution.
"House Bill 1001 is going to be changed. I guarantee you the St. Joseph County language will be changed next year, because the language is temporary," said Rep. Walorski, R - Lakeville. "I'm not going to vote for something you can't change if St. Joseph and Lake County are in there."
Democrats also objected to the plan, saying it is a tax shift, not a tax cut.
The plan would increase the state sales tax by 1 percent, and also give local counties the option to raise local income taxes.
Rep. Ryan Dvorak called the plan little more than an election year stunt.
“People voted for this knowing full well this wasn't going to work,” Dvorak said. “People need to grow up and be more serious about tax policy.”
Dvorak says lawmakers are already saying they will be back next year fixing what they did this year.
The plan does include money for school corporations that would lose revenue under the plan. The state would also assume a lot of the costs for which county governments are responsible. Lawmakers say that should cut property taxes even more.
Taxpayers will see property tax cuts this year. The bill placing the tax cuts in the state constitution would have to be voted on again next year. If it passes, it will be added to the Constitution in 2012.
Governor Mitch Daniels said late Friday afternoon that he will sign the bill on Monday.
Tuesday, Mar 18 at 8:18 AM Jerry DeMyer wrote ...
Keep an eye open for your new tax bills coming in the mail, folks, as your home value will be going up, to cover St. Joe County’s loss of revenue. Regardless of where you live in St. Joe County and what price range your home is in, the value of your home has been declining since 2004, but the assessed values have been steadily increasing. Make sure you look it over good and get a appraiser, or local Realtor to value your home, so you can file your appeal accordingly. Comments from Realtor.