Articles
Property Tax Reform Puts Taxpayers First
|
Historic Property Tax Reform Puts Taxpayers First |
|
While the General Assembly tackled a number of issues this session, none was more critical or received more attention than property tax reform. After months of detailed debate and discussion, I'm pleased that the General Assembly has passed a property tax package that puts taxpayers first. Indiana has entered a new era of taxpayer protection thanks to some great cooperation and compromise in the Statehouse. Taxes will be cut sharply, by 30% on average this year, and in the future, Hoosiers will be protected from the kinds of increases so many families have struggled with in recent months. The legislation also goes a long way to address the concerns of local governments and schools, with more transition money, local referendums on spending and additional money put away in the rainy day fund for school tuition. Governor Daniels and I have worked with legislators to reach an agreement that includes the essentials of real property tax reform - immediate relief, permanent protection, assessment reform and local spending control. |
|
Immediate relief will come in the form of cuts in this year's bills, 30% on average, starting with the May bills and continuing in November. Additionally, $870 million in additional homestead credits will be added this year. Permanent protection - the heart of this plan - will be delivered in a constitutional amendment that caps homeowners' property tax bills at 1% of the home's assessed value. Assessment reform will occur when township assessors with less than 15,000 parcels will be eliminated - taking the number of township assessors from 1,008 to 44 and virtually eliminating an outdated system of township government.
|
Lt. Governor Skillman presides over the Indiana State Senate in the last hours of debate on property tax reform. |
Finally, local spending control will benefit Hoosiers by repealing excess levy appeals. And now, any non-elected board, such as a solid waste district, must have their budget approved by their local county council. State government will also assume the costs for child welfare, the school general fund and juvenile incarceration, health care for the indigent and police and fire pension funds. All of these levies will be romoved from all classes of taxpayers.
What has occurred today is truly historic. These changes mean a great economic boon for Indiana and terrific savings for taxpayers.
We are grateful to all those who lent their voices to support this landmark legislation, especially the citizens who took their own time to let us know what is important to them. And we are grateful to the senators and representatives who worked so hard to achieve compromise for the good of Indiana.
There was plenty of speculation going on about whether or not a final agreement could be achieved. I'm proud that we have arrived at this point, on time and with a bill that will provide relief not just for us, but for future generations of Hoosiers as well.
