(STATEHOUSE) Jan. 17, 2008 - The House Ways and Means Committee, which that 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. "House Bill 1001 came out of ways and means committee today with the recommendation to pass it to the floor of the house so that we may debate the merits of the bill," Rep. Davis said. "It is evident that everyone in the Statehouse has recognized how important the property tax crisis is by the level of bipartisan cooperation. The attitude here is to get the bill passed, and put it in front of the Senate so that property tax relief gets to taxpayers as quickly as possible." 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 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. The assessment system would be over-hauled, bringing training and certification to the process and reducing 1,100 assessors statewide down to one assessor per county. The assessor would be appointed by the county commissioners and county council. HB 1001 now moves to the House floor, where it will be handed down for second reading. During this phase, all House members will have the opportunity to amend the bill before the final vote. Rep. Davis encourages constituents to contact him with questions or concerns through e-mail at h33@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. -30- |
