Governor Clarifies Tax Cut Measure

Governor Clarifies Tax Cut Measure (Indianapolis, IN) House Bill 1001, which contains Gov. Mitch Daniels property tax relief plan, passed the House last week with 27 amendments attached to it. Today the Governors office noted that the amendment process and reporting may have confused some residents. Under the original bill, all homestead property taxes (the taxes on your primary residence) would have been cut by a statewide average of 35 percent. The bill also places a cap on homestead property taxes of 1 percent of the assessed value. (For instance, the property taxes on a $100,000 home could never be more than $1,000 per year, and the taxes on a $500,000 home could not be more than $5,000). Some have been confused about the cap, fearing that their taxes would go up if they are currently paying less than 1 percent. A spokesman says hat is not the case. Under the proposal, every single property tax-payer should see a reduction in his or her property tax bill. Some constituents have also been misinformed about one of the amendments adopted on second reading. Rep. Russ Stillwell (D- Booneville) offered an amendment to phase out a proposed supplemental deduction for homes above $200,000, with no additional property tax relief for the portion of the value above $800,000. This provision was apparently misreported, leading some to believe that homeowners with higher-value homes might actually pay more property tax than they currently are. If the amendment were to become law, homeowners with high-value homes would not get as much relief as the governor proposed, but they would still pay less than they are currently paying. The bill is only about a third of the way through the process. The Indiana Senate will now deal with HB 1001, and they will be dealing with amendments before sending the bill to conference committee. (Copyright 2007 Newsroom Solutions, LLC) Delivered by Newsroom Solutions RNS-01-29-08 1030CST