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The three top issues for the General Assembly this session are property taxes, property taxes, property taxes. We must end Band-Aid fixes to Indiana’s outdated system, and House Republicans have endorsed a bold plan for immediate relief and permanent tax reform. Our 10 “Standards for Success” should be included in any plan adopted this session.
•Immediate property tax cut by May 2008. Homeowners must receive an immediate property tax cut of at least 40 percent by this May. No rebates, no gimmicks.
•Permanent state and local spending caps. Both local and state spending must be controlled. State spending increases must be permanently limited to the growth in personal income in the state and exceeded only with a two-thirds vote of the legislature.
•Permanent 1 percent of assessed valuation homestead cap. No homeowner should pay property tax exceeding 1 percent of his or her home’s assessed value. Savings to homeowners: $215 million, beginning in 2009.
•Remove schools and welfare from property tax. Removing these state burdens from local property taxes would bring $1.1 billion in property tax relief.
•Make caps and levy removals permanent. No more temporary fixes. These taxing and spending limits should become permanent through an amendment to Indiana’s Constitution.
•Referenda for local construction and budget increases. Taxpayers should control how their tax dollars are spent by voting on major local construction projects and budget increases that exceed local spending caps.
•School construction projects built on local option income tax. Statewide, school debt constitutes 37 percent of the increase in our property-tax levy. Placing projects on a voter-approved optional income tax would end that.
•Fund all cuts with sales tax alone. Even if the property tax burden is relieved, public services still must be funded. Replacement funding should come from the state sales tax alone and no other taxes. This is fair, equitable and supported by most Hoosiers. According to the Legislative Services Agency, a 1-penny sales tax increase would provide almost $1 billion in property tax relief in 2009.
•Single assessment official in each county. Hoosiers deserve consistent and predictable assessments. Each county should have a single assessor, who is trained and qualified to ensure uniform assessments.
•Permanent elimination of homestead property tax. This is the key to truly ending Indiana’s property tax crises. House Republicans support the elimination of homestead property taxes by 2012, and the process should start this session.
We face a great challenge, but also a great opportunity. Other matters will demand legislative attention, but all else shrinks before our current property-tax crisis. Our plan to cut taxes now and cap them forever offers immediate relief and permanent reform. Hoosier taxpayers deserve no less.
