To the Editor,

Now that the full extent of the property tax crisis has hit, we’re seeing some pretty impressive posturing.  Last week, Indianapolis Mayor Bart Peterson attempted to deflect his share of the blame by warning against political finger pointing.  He then immediately pointed the finger at the legislature for property tax increases, 99.9% of which fund local government services and schools. 

Last Sunday, Indianapolis Star columnist Matt Tully answered a reader’s question of who was to blame for this property tax fiasco.  Tully blamed “every level of government in Indiana – from schools to townships to cities to counties to the state,” but in his next sentence he got careless.  “But if you are looking for Public Enemy No. 1, focus on the Indiana General Assembly.”  Matt gave most of the story, but in this case, left out some critical information about the property tax debate that you need to know.
 
The entire General Assembly is not responsible for the “silly, inefficient and costly rebate program aimed at scoring political points.”  Democrat Speaker Pat Bauer is the mastermind of this one, and House Republicans did everything we could to stop it.  The Speaker’s plan:  let your property taxes go up an average of 24%, and send a little more than half of that back as a “rebate” with a letter to 1.75 Million taxpayers stating that they owe their thanks to the Indiana General Assembly.

House Republicans vehemently opposed this ill-conceived rebate program, and went so far as to cast 49 votes against an otherwise balanced and reasonably fair budget in an attempt to kill the rebate plan.  Instead, House Republicans called for $750 million in immediate property tax relief, to be applied before your tax bill came out, not after.  We even offered specific spending cuts to fund the additional relief and a voter approval proposal for new construction projects to keep property taxes low.  We lost on all counts.

Our plan would have limited the average homeowner property tax increase to 5%, the historic average.  Instead, after a 24% average increase (with some increases much higher), local officials will send 1.75 Million individual letters with 1.75 Million individual rebate checks, at a cost estimated at $25 or more per check.  By the way, that expense will be placed on the local property tax bill.  That’s efficiency. 

During the closing days of the session, I called this tax and rebate scheme a “hair brained idea” and “the worst tax policy I’ve seen in my 21 years in the legislature.”  I was even quoted during floor debate as asking, “Who was the genius that came up with this one?”  Well I found out – it was the Democrat leadership of the Indiana House.  Now you know the rest of the story. 

Unanswered questions abound.  How do I pay a 24% increase (or more) on a fixed income?  If I pay my taxes with my mortgage, who gets the rebate check?  If my mortgage company gets the check, when will my mortgage payments come back down?  Who gets the check if I sell my house or get a divorce?  What if I move, where will the check go?  Is the rebate taxable income if I receive the check after December 31? 
Don’t worry about those details silly taxpayer, thanks to House Democrats, the check is in the mail.

Sincerely,



Brian C. Bosma
Republican Leader
Indiana House of Representatives
115th General Assembly