Panel favors steep homeowner tax cut

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A state legislative commission studying Indiana’s tax woes said today that it thinks the government should trim property taxes 50 percent for most homeowners.

The bipartisan commission also wants to reduce taxes by 25 percent for other residential property like apartments and second homes. It would balance these cuts with increases in local option income taxes and by creating a broader base for the state sales tax.

The commission is headed by Republican Sen. Luke Kenley of Noblesville.

Gov. Mitch Daniels has pitched a plan to reduce homeowner tax bills by about a third statewide. But members of the State Tax and Financing Policy Commission say their plan isn’t meant to compete.

They say it should be used as a road map that helps lead to reform in the upcoming legislative session.

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