Governer Daniels Unveils IN Property Tax Fix
By: Andy Schroeder
Updated: October 23, 2007
Indiana Governor Mitch Daniels is the latest to pitch a fix for the states skyrocketing property taxes. In a statewide address, Daniels said he supports raising the states sales tax to 7 cents per dollar, from the current 6 cents. Using that additional income, he would cap homestead property taxes at 1%, rental property tax at 2% and business property tax at 3%.
The governor says he would like to abolish property tax all together. He said that would require a hike in the states income tax, a move he does not support.
In addition to capping property tax, the governor favors abolishing political assessors posts, and having each county served by a single, appointed assessor who would be professionally trained. In addition, he wants to see a single system of accountability for local government spending.
"Ill propose that any significant capitol project of any spending beyond the growth in local income must be approved by voter referendum," Daniels said.
His proposal would have to be approved by the General Assembly this winter, and some aspects of it would require changes to the states constitution. Most Indiana lawmakers have pledged property tax relief by the end of this coming legislative session.
