Property Taxes

Republican tour continues in New Albany

Thu, 10 Apr 2008 13:46:33 -0500

Reps. Brian Bosma and Eric Turner visited New Albany last week to continue to promote the Republican property tax relief program passed this general assembly.

The News and Tribune:

The two were in Evansville on Wednesday before making the drive to New Albany. Their message has been one of support for the property-tax relief package, which will include $620 million in aid for 2008.

“The burden of property taxes was becoming unbearable for homeowners,” Turner said.

Turner said the goal of legislators in favor of the package was to make taxes less formidable for property owners, while at the same time making the levies predictable.

“Over and over, people said to us that they would go to their mailbox with sweaty palms, not knowing how much there property taxes were going to go up,” Turner said.

Bosma called the reform historic, saying there had not been such an effort in Indiana since the 1973 tax freeze.

He said homeowners will save an average of 25 percent this year on property taxes. Floyd County property owners will save nearly 31 percent on average, according to Bosma.

By 2010, the tax circuit breaker will be at 1 percent for residential property owners. The median homeowner’s cap would be $1,207.

The state sales tax will be raised to seven percent to provide funds to replace property-tax dollars. Bosma said residents around Indiana have told him they prefer the sales tax increase in exchange for reductions in property taxes.

Immediate tax relief was one of four goals Bosma said GOP lawmakers had outlined for the latest legislative session. Other aims were to make caps permanent, empower local taxpayers and to place limits on local government spending.

Jackie Walorski's Capitol Letters Blog

Thu, 27 Mar 2008 08:14:55 -0500

Jackie Walorski gives us a round-up of this session on her blog. Here's some of what she had to say.

The 2008 Indiana General Assembly is now in the history books and will certainly go down as a session that delivered some major wins for taxpayers. Especially the 30-40% immediate property tax cut for Elkhart and St. Joseph County homeowners. Let me tell you, those wins didn’t come easily. It was a fight all along the way with those who felt they knew how to spend your money better than you. Not only that, it was a battle to convince them that no Hoosier should ever lose their home because of high taxes. I still firmly believe that until we actually “eliminate” the property tax it will be a source of many court battles and fights between local and state governments. But faced with limited options, this tax plan was the only one that I felt brought some immediate relief to Hoosiers this year.

House Republican Property Tax tour continues

Wed, 26 Mar 2008 10:26:15 -0500

We’ve posted a couple articles on our blog about the House Republican town hall meeting tour this week. Bruce Borders, Amos Thomas and Brian Bosma held one of those Town Hall meetings on Tuesday in Terre Haute. The Tribune printed a long article.

“It is the strongest and most historic property tax relief package that has been adopted in my 22 years in the General Assembly and some have said in two generations,” Bosma said. “It was truly a historic event which will significantly benefit taxpayers in western Indiana today and also cap their property taxes in the future.”

Bosma said House Republicans sought to measure the tax relief plan, in part, by an immediate property tax cut of at least 25 percent to homeowners.

“For folks in Vigo County, that property tax cut for homesteads will be 36.2 percent. In Clay [County] it will be nearly 30 percent and Sullivan [County] will hit nearly 25 percent,” Bosma said.

Republican caucus members visit Marion

Fri, 21 Mar 2008 09:54:38 -0500

Republican members of the Indiana House visited Marion on Tuesday to discuss the property tax reform bill that passed the house.

From the Chronicle-Tribune:

Eight House Republicans came to Marion City Hall, 301 S. Branson St., to discuss the recent legislative session and to answer questions from the public. The No. 1 topic was property tax relief and how it could affect residents of Grant County.

“It was a piece of landmark legislation,” Rep. Jeff Espich said of the property tax relief plan that was passed Friday by the legislature. “It’ll change the way we do business here in Indiana.”

While the statewide average savings in property taxes is around 30 percent, Espich said Grant County residents could see a 35 percent cut from what they would have paid in property taxes this year, then a 39 percent cut in 2009 and a 40 percent cut in 2010.

Knollman takes case for referendums to district

Thu, 21 Feb 2008 12:21:08 -0500

Representative Knollman recently spoke with voters in Liberty, IN about legislative issues. There he made the common sense Republican case for allowing voters to have input on school construction projects.

From the Palladium Item:

Knollman, R-Liberty, said his constituent survey showed people want the right to vote on building projects.

"Do we think voters are dumb? Do we think they're stupid? We need to look at referendums," Knollman said.

Too bad the Democrats don’t have the same common sense on this issue. HV08 thinks it may have a lot to do with their “special friends” at the teacher’s union.ublican case for allowing voters to have input on school construction projects.

Need A Reason for Referendum and Reform?

Fri, 01 Feb 2008 11:05:44 -0500

If you need a reason to support the Republican-backed referendums, look no further than to what’s happening in the Center Grove area in Johnson County. Note that the Johnson County Daily Journal requires a subscription to read the full text:

Two Center Grove elementary schools will be closed and sold, two will be expanded or renovated, and a new elementary school will be built if a plan by school officials is accepted.
The change would make Center Grove’s five remaining elementary schools larger, housing 650 to 750 students, and follow Gov. Mitch Daniels’ request for schools to consolidate and operate more efficiently, Superintendent Steven Stephanoff said. The project is being done quickly to get approval before state legislators make major changes to the property tax system, he added.

So let’s get this straight. The Center Grove Superintendent is pushing a major construction project for the district. He wants to get it approved NOW. Why?

By his own admission, because he fears that the legislature will give more power to the voters this session. I suppose he wonders whether or not (with property tax increases through the roof) taxpayers will agree to pay for it.

Last I looked, we were living in a democratic country. But, I digress.

Now, that’s bad enough. But here comes more.

A vote by the board could come in February or March. If approved, officials would next decide how the project would be paid for and whether the money borrowed should be part of a larger loan to pay for renovating and expanding the high school.
How much the work will cost, or exactly how it will be paid for, isn't known.

Yeah. You read that right. The Superintendent wants to approve his new multi-million dollar project- without a price tag and without a way to pay for it.

If we don’t get the referendum proposal passed, this kind of insanity will continue. That’s why the Republicans are fighting hard for it. We are still looking for a credible reason why the Democrats have opposed it.

GOP, Indy Star: Give the people a voice, Dems: No way

Wed, 30 Jan 2008 08:16:37 -0500

That’s how it seems to be shaking out, and it’s disappointing. Even the Indianapolis Star editorial board seems to be perplexed.

One new amendment, approved by House Democrats voting along party lines, would limit school construction referendums to those projects not directly tied to classroom instruction. Taxpayers under the proposal could still decide whether to build a new high school football stadium but wouldn't be able to vote on whether proposed classroom buildings are excessively expensive.

Opponents of referendums fear that taxpayers would be too stingy, blocking necessary construction to the detriment of students. But Hoosiers have shown repeatedly that they're willing to spend money on education when school administrators make clear that needs -- and not mere wants -- truly exist.

Taxpayers already have oversight of sorts through a remonstrance process. But it's a convoluted system that lacks transparency.

What opponents of referendums are really saying is that they fear taxpayers are unable to make wise decisions about how their money should be spent. That's not an attitude the General Assembly should embrace.

House Republicans, however, are clear. There is nothing dangerous about giving voters a voice in local school construction projects. Why the Democrats don’t trust the people is a mystery.

Republicans focused on restraining the excesses of government

Tue, 29 Jan 2008 15:26:32 -0500

Let’s be clear. As Republicans, we understand that increases in property taxes haven’t materialized from nowhere.

They came because government isn’t living within its means.

That’s why we support a state spending cap and support giving voters a voice in local government spending projects. The Indianapolis Star editorial board agrees. The Democrats, however, have rejected giving voters a say and shot down spending caps.

That’s bad for Hoosiers because it sets us up for another property tax crisis down the road.

Republicans have set standards for success so we won’t have that happen.

Immediate property tax cut by May 2008.
Strong state and local spending caps.
Permanent 1 percent of assessed valuation homestead cap.
Remove schools and welfare from property tax.
Make caps and levy removals permanent.
Referenda for local construction and budget increases.
School construction projects built on local option income tax.
Fund all cuts with sales tax alone.
Single assessment official in each county.
Permanent elimination of homestead property tax.

Reasonable minds agree that the people should have a voice. Why don’t Democrats?

More Republican ideas to save taxpayers money: Democrats continue to dig a debt hole

Mon, 28 Jan 2008 15:55:54 -0500

If we’ve learned one thing from the final version of HB 1001, it’s that Republicans have emphasized fiscal responsibility while Democrats have been looking for ways to create more problems.

Take Rep. Dan Leonard’s idea to save money on school construction.

Last year, three new schools were built in the 50th District, and they were all very similar, but all had separate building plans. Rep. Leonard’s amendment, the Little Red Schoolhouse Amendment, would require the state to have school building plans already drawn up for counties to use. This would save Hoosier taxpayers millions of dollars in design fees.

“School construction is a large portion of local government costs,” said Rep. Leonard. “By moving to pre-designed school construction plans, we will reduce cost to counties, cutting property taxes. Many other states, such as Florida, have already successfully instituted statewide school building plans.”

Whitley County is currently building a new school and estimated costs are $62 million. This bill would help contain costs on construction plans, architect fees and engineering cost. School building costs in Indiana now average 149 percent of the national average for cost per square foot. This is an attempt to lower that and keep spending under control.

The Democrats, however, stopped a spending cap amendment designed to reign in state spending. In addition, they again eliminated a provision that would give Hoosiers input on local construction projects- a line item that’s now estimated to be responsible for as much as 50% of the total property tax burden on taxpayers.

So let’s summarize 2008 thus far…

Republicans announced a property tax solution that voters demanded. Democrats tried to shift blame.
Republicans announced a fiscally responsible proposal. Democrats added $340,000,000 in spending.
Republicans proposed spending caps and voter referenda. The Democrats protected the entrenched liberal leadership of the teachers union, not the taxpayers.

General Assembly - 1, Rep. Craig Fry - 0

prospergroup — Thu, 24 Jan 2008 14:59:51 -0500

The House just passed the majority of the Governor's property tax relief plan (supported by House Republicans) by a vote of 93-1. Great. The General Assembly agrees. Score one for the good guys!

Democrat Craig Fry, protector of all things ridiculous, voted against it. This may be because he couldn't force Pat Bauer into giving him some sort of special earmark like in the 2007 budget. See Fry's own press release bragging about his 2007 feat at http://www.in.gov/legislative/house_democrats/fry_press_20070223.html.

Sorry Craig, no money for your pocket this time.

Here's the coverage of the bill passage from the Indy Star.