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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowThe Indiana House has advanced a proposal that supporters say would accelerate limits on tax bills and provide $200 million in property-tax relief.
But don’t count on seeing those savings.
The proposal is unlikely to pass the more deliberative Senate, where a Republican leader said caps on property-tax bills must be gradually implemented as originally planned so that local governments can adjust to shrinking incomes.
Current law will phase in tax caps by 2010, when property-tax bills on homeowners would be limited to 1 percent of their homes’ values, with 2-percent limits for rental property and 3-percent caps on business property. The limits for 2009 limits are 1.5 percent, 2.5 percent and 3.5 percent, respectively.
The Democrat-led House voted 85-11 for an amendment yesterday that would put the “1-2-3” caps into law retroactively, starting Jan. 1 of this year. They said it would save people money during the recession, when they need it most.
“It keeps $200 million in Hoosier taxpayers’ pockets at a time when we have over 300,000 unemployed,” said Rep. William Crawford, a Democrat from Indianapolis who suggested the amendment.
House Republicans derided the proposal as a “phony gesture.” But only one Republican – Rep. David Wolkins of Winona Lake – joined 10 Democrats in voting against the politically popular idea of saving taxpayers money.
House Republicans said the proposal was a “bait-and-switch” to avoid what they called the real issue: taking another step toward amending tax caps into the Indiana Constitution. Rep. Jeff Espich (R-Uniondale) said the proposal illustrated the need for more permanent taxpayer protection.
“How easy it is to change the law,” Espich said.
Republicans have been trying to pressure House Democrats into quickly taking another step toward constitutional property tax caps, and have set up a countdown clock displayed outside House chambers showing the time remaining to act on the matter this session.
House Speaker Patrick Bauer (D-South Bend) has suggested lawmakers wait until next year to consider moving toward a constitution amendment so lawmakers know more about the financial hit local governments may take from the caps. If lawmakers pass the constitutional proposal either this year or next, the earliest the issue would go to voters is the 2010 election.
House Minority Leader Brian Bosma (R-Indianapolis) said he voted for the proposal because he supports property-tax relief. But, he said it was an empty gesture that allows lawmakers to issue press releases saying they support tax relief without taking the most important step of voting for constitutional caps.
“Honestly, does anybody think that’s serious?” Bosma said of the Democrats’ proposal. “It doesn’t mean anything. It’s not going to get enacted.”
That much seemed clear yesterday.
Senate Appropriations Chairman Luke Kenley (R-Noblesville) broke into laughter when reporters told him about the House proposal. He said the tax caps should be implemented over time so that local governments have a chance to adjust their budgets. Hastening the implementation wouldn’t be fair, he said.
“They’re really going to cut the throats of local government,” he said.
Some House members said they weren’t afraid to vote against what they characterized as a silly, nonsensical idea.
“This is baloney,” said Rep. Craig Fry (D-Mishawaka).
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