Property tax cap legislation passes through Senate
INDIANAPOLIS -- The Senate passed property tax caps with a 35-15 vote despite continuing questions about ramifications and public awareness.
Three Democrats, Sen. Tim Lanane, D-Anderson, Sen. Frank Mrvan, D-Hammond, and Sen. Connie Sipes, D-New Albany, voted for the constitutional amendment that would cap property tax rates at 1 percent for residences, 2 percent for farms and 3 percent for businesses.
Sen. Jean Leising, D-Oldenburg, was the lone Republican to resist the measure.
Leising said she opposed her caucus because Senate Joint Resolution 1 would be detrimental to her heavily agricultural district. She said it would be difficult to explain to her constituents that Lake and St. Joseph counties would be exempted from this amendment, but her hurting counties, including Fayette County, which was in the top three in the state in unemployment prior to the current economic recession, would not.
“I knew that if I spoke against it, I couldn’t stop it,” Leising said. “For me, when I look at the whole issue, if we really want to adjust property taxes, we’ve got to look at capping or limiting assessed valuation.”
Sen. John Broden, D-South Bend, questioned whether the 1-2-3 system was sound in policy and was more than just a catchy slogan. He said he wasn’t convinced that this “constitutional straightjacket” would work or if it will send the state more down California’s economic road.
"If the goal is to provide protection to homeowners as well as all classes of property owners, maybe we’ve missed the mark,” Broden said.
Democrats continued the arguments that the impact this could have is still unknown. Sen. Lindel Hume, D-Princeton, questioned why legislators were “rushing to do this” and said the Legislature should wait and so they could better gauge the ramifications.
“Putting language like this in the constitution before we even know the impact on local government, on our business and economic development; it’s good politics and pretty lousy public policy,” Minority Leader Vi Simpson, D-Bloomington, said.
Sen. Luke Kenley, R-Noblesville, said this was the time for the senators to stand by the commitments they made in town hall meetings to work to control property taxes. President Pro Tem David Long, R-Fort Wayne, said this would be beneficial to the state and the taxpayers.
“If we really remember what they said and if we really intend to follow through on that commitment, I don’t think we have any choice but to pass this resolution, let it go to the people, let them decide whether or not they want these controls on their property taxes in the constitution of the state of Indiana,” Kenley said.
“A yes vote is a good thing for our state and a good thing for the long term economic stability of our state,” Long said.
