State Senator Ed Charbonneau

200 West Washington Street – Indianapolis , Indiana 46204

NEWS RELEASE
2-25-08

Courtney Smith (317)232-9539
csmith@iga.state.in.us

FOR IMMEDIATE RELEASE

Charbonneau: Property tax survey results are tallied

(STATEHOUSE)- Results of this year’s legislative survey show a majority of Hoosiers in Senate District 5 support alternative revenue sources to fund local government and reduced government spending to help solve the state’s property tax crisis. Sen. Ed Charbonneau (R-Valparaiso) announced results from his district-wide survey today, which focused on proposed legislation aimed at resolving the property tax issue.

Of more than 1,100 local respondents to the survey, Charbonneau’s results show a majority – 61 percent – support a bill similar to that proposed by Gov. Mitch Daniels that would permanently cap property taxes on a home’s value.

Earlier this week, a Senate panel passed an amended version of Gov. Mitch Daniels’ property tax reform package offering $600 million in new relief. The Senate’s version of House Bill 1001 includes a one percent property tax cap on owner-occupied homes, a two percent cap on other residential properties and agricultural land and three percent cap on businesses.

Of Charbonneau’s survey respondents, 70 percent supported a measure shifting remaining school operating costs and child welfare costs from property taxes to the state budget. The Senate version of HB 1001 proposes to do just that. Under the Senate version, the state would pay $1 billion of local costs including school and child welfare from state revenues other than property taxes, resulting in $1 billion in additional property tax relief.

Among Charbonneau’s other survey findings, a large majority – 79 percent – support proposals creating one assessor per county and developing standardized school construction plans to save tax dollars.

Additional survey results show:

  • A plan increasing sales taxes from six percent to seven percent to permanently cut property taxes on owner-occupied homes by a statewide average of 38 percent was the most popular option selected at 29 percent.
  • 25 percent of respondents favor increasing sales taxes by up to one percent and local option income taxes by an average of 0.6 percent to 0.7 percent to permanently cut property taxes on owner-occupied homes by a statewide average of 50 percent.
  • Using an increase in sales taxes from six percent to 13.2 percent to completely eliminate property taxes was chosen by five percent of respondents, the same amount who preferred using an increase in income taxes from 3.4 percent to nine percent.

Sen. Charbonneau represents Senate District 5, which includes Starke County and portions of Porter, LaPorte, Marshall, Jasper, Pulaski, and St. Joseph counties.

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