[r24] Rep. McClain Votes $900 Million Tax Cut Out of Committee (1/18/2008)

Friday, January 18, 2008

Start Date: 1/18/2008 All Day
End Date: 1/18/2008

The House Ways and Means Committee, which hears all proposed tax legislation, today passed House Bill 1001, the governor's property tax plan, out of committee with a vote of 24-0. Under the proposal, homeowners would receive almost $900 million in tax cuts.

"I am proud to have been a part of this early step toward providing permanent property tax relief for Hoosier families," said Rep. Rich McClain (R-Logansport). "There is much work left to be done, and the bill that includes Gov. Daniels' plan will certainly undergo many changes and challenges as it moves forward. However, moving this bill out of the Ways and Means Committee bodes well for homeowners across the state, and I will look to continue to advocate for fair, final and far-reaching property tax relief."

HB 1001 provides immediate and permanent relief for homeowners by introducing extra homestead credits and having the state assume the levy costs for school operation and child welfare. Additionally, future property tax bills would be capped at 1 percent for homeowners, 2 percent for rental property and 3 percent for businesses. This would result in property tax cuts of approximately 39 percent for homesteads, 27 percent for rentals, 15 percent for businesses and 21 percent for personal property.

The plan also includes local government spending caps, which would include caps on counties, cities, towns, schools and libraries. Spending would be capped at the county's personal income growth rate. Further, residents would be allowed to vote on significant local building projects to keep spending in-check.

HB 1001 now moves to the House floor, where it will be handed down for second reading on Tuesday, Jan. 22. During this phase, all House members will have the opportunity to amend the bill before the final vote.

Rep. McClain encourages local constituents to contact him with questions or concerns through e-mail at h24@iga.in.gov; by calling the Statehouse toll-free at 1-800-382-9841; or by writing him at 200 W. Washington St, Indianapolis, IN 46204.