Forum to address property tax caps

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December 2, 2009

Anonymous The Kokomo Tribune Wed Dec 02, 2009, 12:28 AM EST

THE ISSUE:A discussion panel on Thursday will address the issue of adding tax caps to the state constitution.

OUR VIEW:The discussion might be of interest both to taxpayers and to elected officials.

Caston schools in Fulton this week will play host to a panel discussion on a proposal to make property tax caps part of the state constitution.

Two area lawmakers, Sen. Randy Head and Rep. Douglas Gutwein, will be among the participants. Watchdog Indiana, which can be found online at www.watchdogindiana.com, is sponsoring the event, and the moderator will be Aaron Smith, that organization’s founder.

Indiana lawmakers talked about the issue in this year’s session.

Republicans, led by Gov. Mitch Daniels, generally favored the idea, saying that it was important to lock in the property tax limits that legislators had already made a part of state law.

Democrats, led by House Speaker Patrick Bauer, generally opposed it, saying that it would be premature to pass a constitutional amendment before local units of government had a chance to figure out how the caps were affecting them.

As lawmakers return to Indianapolis next month for their biennial short session, they’ll hear from tax reform advocates seeking to lock in the tax caps they won in 2008, and they’ll hear from cities and towns who say they have been forced to make difficult budget cuts as a result of the declining tax revenues.

They might also hear from taxpayers complaining that the tax caps didn’t do enough. For some, the tax caps might have meant lower tax bills, but others might have seen their tax bills go up.

As it now stands, the tax on homeowners is limited to 1 percent of assessed value, while the tax on rentals is limited to 2 percent and the tax on businesses is limited to 3 percent.

But what of property owners whose taxes already fall below the caps? What protection would the proposed amendment provide for them?

If the Legislature approves the proposed amendment in the coming session, the measure will be the topic of a referendum in the November election.

Should lawmakers give voters that opportunity? That will be a topic of discussion at Thursday’s public meeting. Those interested in the answer might do well to attend.

— Pharos-Tribune, Logansport, and Kokomo Tribune

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