House OKs proposal to speed property-tax caps-WEB ONLY

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The Democrat-controlled Indiana House has passed a proposal that supporters say will provide $200 million in property-tax relief this year by accelerating the phase-in of tax caps. But the bill is unlikely to win approval from the GOP-led Senate.

Current law will phase in tax caps by 2010, when homeowners’ property-tax bills would be limited to 1 percent of homes’ values, with 2-percent limits for rental property and 3-percent caps on business property. The House voted 80-12 yesterday for an amended bill to enact those caps immediately, although some said the proposal was a sham simply meant to make lawmakers look good in supporting tax relief.

Republican Sen. Luke Kenley of Noblesville said limits on property-tax bills must be phased in as originally planned so that local governments have time to adjust to shrinking tax revenue.

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