Tax caps pass House
INDIANAPOLIS -- The House voted 75-23 today to advance a State Constitutional amendment capping property taxes to the Senate, which will hear testimony in the Tax and Fiscal Policy Committee Tuesday morning.
“There comes a time when you do something not because it is safe, popular or expedient; you do it because it is right,” said Rep. Bill Crawford, D-Indianapolis, who presented HJR 1.
The constitutional amendment was not purely partisan. Thirty Democrats voted for it and three Republicans voted against it. Rep. Tom Knollman, R-Liberty, Rep. Dan Leonard, R-Huntington, and Rep. Tom Saunders, R-Lewisville, all voted against it.
Gov. Mitch Daniels applauded the bipartisan effort. Daniels has said he believes the tax caps will set off a number of government mergers and consolidations. Zionsville recently merged with two neighboring townships and Greenwood is discussing a similar merger with White River Township. Evansville and Vanderburgh are also working on a referendum that likely will come before voters in November.
"Our lower property taxes are closer to being permanent. Thanks to the speaker for allowing this vote to happen and to members of both parties who voted ‘aye,’” Daniels said.
Minority Leader Brian Bosma, R-Indianapolis, said he understood those who had issues with the legislation, but he said HJR 1 this ensures predictability for homeowners that their property taxes never would exceed one percent of their assessed value.
“It’s not without its faults. It’s not perfect. But it’s the best thing for Hoosier taxpayers,” Bosma said.
"I look forward to swift action by the Senate so we can be assured that every Hoosier taxpayer can vote to permanently cap their property taxes on Nov. 4," Bosma said in a statement.
Although the vote wasn’t close, many questions lingered about ramifications and public knowledge.
Rep. Scott Pelath, D-Michigan City, said he believed 1-2-3 tax caps – the different levels for homes, farms and businesses -- is a political “slogan” that will only “muddy” the Constitution. He said he worries whether it will live up to the “sales.”
Rep. Win Moses, D-Fort Wayne, said he voted for the measure only to put it in the hands of the taxpayers. He expressed concern that taxpayers are not informed about the intricacies of the 1-2-3 system or what the implications could be for local government. Saunders voted against the caps and questioned whether the House should put language in the constitution that will tie future lawmakers’ hands as well as those of local government officials.
“This is not a panacea,” Rep. Ed DeLaney, D-Indianapolis said. “I will vote for the hope, I will work against the fear.”
Speaker Pat Bauer, D-South Bend, did not vote but said he gave an extra year for local government, education and public safety to make their case against the caps. He said they did not, so he went ahead and brought it to the floor. He said he foresees more consolidation and volunteerism in local government in the future as a result of this amendment.
“It is important to remember that the most substantial strides toward permanent property tax relief in recent years have come when Democrats have been in charge of the Indiana House. Under our control, the 1-2-3 property tax caps were placed into state statute,” Bauer said in a statement. “It is time for Indiana residents to decide if these protections deserve permanent placement in our state’s highest document. Those groups that feel the caps are unfair will have the chance to convince the public that they will harm the ability of local government to provide critical services, such as police and fire protection.”
Ron Bacon, a Republican candidate running against Rep. Dennis Avery, D-Evansville, said he was “disappointed” that Avery voted against it.
“As a small business owner, I realize the profound effect that property taxes can have on economic development. As a voter I would like the opportunity to choose my destiny. That's why I am encouraged to see the House of Representatives vote today to pass constitutional property tax caps and put the issue in the voters' hands. But I am also disappointed that Rep. Avery chose to put partisan politics ahead of taxpayer protection by voting against releasing a referendum on property tax caps. Hoosiers in Southwest Indiana deserve leaders who will listen to and trust their opinion. Indiana deserves a government that works with business and industry fostering jobs and economic growth,” Bacon said in a statement.
Cheryl Musgrave is a Republican candidate running against Rep. Gail Riecken, D-Evansville, who voted in favor of the tax caps.
“This is a huge win for Indiana taxpayers on multiple fronts. As someone who worked tirelessly on this issue while Commissioner at the Department of Local Government Finance, I'm excited that Hoosiers are now one step closer to being protected from skyrocketing property taxes and that they will be able to have their voices heard on the issue in a November referendum. Most importantly, however, this victory makes Indiana even more enticing to businesses looking to relocate and bring jobs to Southwest Indiana,” Musgrave said in a statement.
Rep. Trent VanHaaften, D-Mt. Vernon, voted against the tax caps and drew criticism from his Republican challenger, Wendy McNamara.
“Protecting taxpayers is fundamental to strong, representative leadership. It is disturbing to hear that Trent Van Haaften voted against providing this basic protection," said McNamara.
"What concerns me the most is that this action indicates that he is not interested hearing taxpayers' opinions on the property tax cap legislation; otherwise, he would have allowed the issue to be put before a referendum," McNamara said in a statement. “By permanently capping property taxes, we position Indiana to attract new homeowners, and ultimately new businessesing businesses, and that's what our community needs."
Rep. Cleo Duncan, R-Greensburg, said she voted for the amendment to simply hand the decision to the taxpayers.
“The reason I voted for HJR 1 today was primarily to give the people of House District 67 the opportunity to vote in November on permanent property tax caps," Duncan said in a statement. "Voters will now have the chance to vote on whether or not they want to change our state's constitution."
