Indiana

Put On Your Tax Caps

By Abdul Hakim-Shabazz

I’m going to go out on a limb here and predict that in 2010, Indiana lawmakers will pass putting property tax caps on the ballot for the November election.

“Wow, Abdul, you really did go all out on that one!”   Tell me about it.

Seriously though, I base this assumption on some new data from the State of Indiana concerning property taxes.   The average Hoosier property taxpayer pays about 30% less in property taxes than he or she did in 2007.

In Marion County, about 90% of property taxpayers saw some decrease in their tax bills between 2007 and 2009, 83% of that had decreases between 20 and 60%.    Because of that I frankly don’t see how lawmakers (i.e. House Democrats) can vote against putting tax caps on the ballot without suffering serious political consequences.

Already Democrats have to deal with the political climate of mid-term elections which doesn’t favor the party in power.  In addition,  Republicans have fielded or will field between 20-30, mostly credible, challengers for the House of Representatives.  And while there may not be much political capital in voting for tax caps, there are consequences for voting against them.

The one ace that I believe House Speaker Pat Bauer does hold in his hand is the desire to put caps on assessments as well.   As much as I have always supported tax caps, I have always thought homeowners could use the extra protection of caps on assessments;  absent the home being recently sold which would determine the new assessed value.

Of course the big criticism of caps is that is puts local governments in a vice.  Although there are a lot of people in local government around Indiana that I respect, I’ve never fully bought that argument either.  The Legislature has given the locals plenty of tools to make up for loss revenue and local governments have dragged their feet on consolidation and reform, which would immensely help them deliver services in a more efficient manner.

A committee vote on the tax caps could could come this week in the House of Representatives.   And as much as some House Democrats may dislike the notion of tax caps, they dislike the notion of Speaker Brian Bosma even more.

*Editor’s note: I did not talk about property tax repeal because that is not going to happen because I live in this place called the real world.

Full post as published by Indiana Barrister on December 13, 2009 (boomark / email).