Senate committees to begin early on 2008 property tax reforms
Key reforms to be heard in three committee meetings next week
STATEHOUSE – State Senators will begin early hearings on 2008 property tax reform legislation next week, more than a month before the Indiana General Assembly is scheduled to begin.
Sens. Luke Kenley (R-Noblesville) announced today the State Tax and Fiscal Policy Committee will conduct its first hearing Tuesday, Dec. 4, at 9 a.m. in Room 431 of the Statehouse. Tuesday’s hearing will be the first of three scheduled in the Senate next week. Kenley said the early start symbolized the Senate Republican Caucus determination to make property tax reform “Job 1” in the coming legislative session.
On the agenda Tuesday are two Senate bills and one Senate resolution:
- Senate Joint Resolution 1: A proposed constitutional amendment requiring the General Assembly to establish a 1 percent cap for property taxes on owner-occupied homes. The resolution also allows the General Assembly to enact credits and deductions to limit tax liability for other types of property.
- Senate Bill 12: A proposal establishing a 1 percent property tax cap for homesteads (dwellings and land up to one acre); a 2 percent property tax cap for other residential property (buildings of two or more dwelling units, common areas shared by the dwelling units and the land on which the building is located); and a 3 percent property tax cap for non-residential real and personal property.
- Senate Bill 18: A proposal establishing controls and requirements for the issuance and management of local debt. According to Sen. Kenley, approximately 30 percent of all property taxes currently go for debt service on capital projects plus levies for capital projects
Committee members include Sens. Tom Weatherwax (R-Logansport), who is ranking majority member; Ron Alting (R-Lafayette), Gary Dillon (R-Columbia City); David Ford (R-Hartford City); Brandt Hershman (R-Wheatfield), Sue Landske (R-Cedar Lake) and Bob Meeks (R-LaGrange) along with Sens. Tim Skinner (D-Terre Haute), who is ranking minority member; John Broden (D-South Bend); Frank Mrvan (D-Hammond); and Connie Sipes (D-New Albany).
Sen. Connie Lawson’s Local Government and Elections Committee will meet Wednesday at 1 p.m. in Room 431 to discuss Senate Bill 16 on property tax assessing duties. This legislation would eliminate the office of elected township assessors, transferring assessing duties to county assessors when a township assessor vacancy occurs. Currently there are 1,100 township and county assessors. According to the Indiana Department of Local Government Finance, there are some current standards for these officials, but they lapse on Dec. 31, 2007. As of Jan. 1, 2008, there will be no minimum standards for these assessors.
The proposed legislation also gives the Department of Local Government Finance authority to approve contracts for professional appraisers “only if it determines the firm has a sufficient number of qualified employees and adequate training and experience.”
Thursday, Sen. Robert Meeks’ Appropriations Committee will meet at 10 a.m. in Room 431 to discuss:
- Senate Joint Resolution 3 – A proposed constitutional amendment to prohibit use of property taxes for common school purposes other than for transportation, capital projects and debt related to capital projects, and employee retirement and severance.
- Senate Bill 1 – A repeal of property tax levies for county child welfare and school general fund, beginning in 2010.
- Senate Bill 14 – A repeal of the state’s 0.1 percent share of property tax revenues for the Indiana State Fair, State Forestry Fund and DLGF management of the local government finance data base. If passed, this measure would mean 100 percent of all property taxes would go to school and local governments.
- Senate Bill 15 – An extension of the filing date from June 11 to Oct. 1 for credits and deductions beginning with payable 2009 taxes: homestead credit and homeowner’s deduction, mortgage deduction, elderly, blind and disabled and disabled veteran and surviving spouse and World War 1 veterans
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