(Statehouse) August 16, 2007- State Representative Tim Neese (R-Elkhart) supports having a special legislative session devoted to property tax relief, which could appropriate as much as $200 million towards immediate relief. Neese additionally supports a constitutional amendment, which could begin during the 2008 legislative session to substantially reduce/abolish property taxes. "Property taxes, as we have experienced this year, prove that we have to examine the other options that exist to fund education and government. Approximately $6 billion statewide is generated from property taxes, which makes me skeptical that a complete repeal is possible; however, a substantial reduction is feasible," said Neese. It is Neese's hope that Governor Daniels will meet with the four legislative caucus leaders, agreeing on specifics or related proposals, with a special session to follow. House Republicans have presented a variety of options to help property taxpayers including: (1) convert the rebate check to a credit on the fall 2007 tax installment, (2) extend the deadline for filing the homestead credit for 2007 to September 15 of this year, (3) allow counties the ability to apply a credit to individuals and communities hardest hit by recent tax increases, (4) freeze child welfare levies in 2007, with the state being all increases for 2007 and beyond and (5) appropriate $200 million in state funds toward immediate residential property tax relief. "Some of these proposals are not unique and have previously received discussion; however, they are now more necessary than ever. The first priority is tangible relief to property taxpayers, however, it is vital that immediate action occur to assist those threatened most by exorbitant property tax increases." "Although many reasons have been cited for high property tax increases, among those most frequently noted are the 2002 elimination of the inventory tax, local spending, reduction of property tax replacement payments by the state, the escalation of increased levies and poorly administered oversight by state officials. Regardless the reason for increases in property taxes, the fact remains that Indiana has seen record high amounts in bills, and I support a reevaluation of all levels of government," said Neese. "An alternative, which I support, towards the current situation of funding education and government solely with property taxes exists by increasing income tax 1% and sales tax 2% and keeping the rate of government growth at approximately 3.5% yearly, in addition to using interest from $300 million set aside in a property tax fund for operating costs. Elkhart County, with its predominance in commercial and industry was affected far more adversely by the elimination of the inventory tax in 2002 than other counties in Indiana," stated Neese.
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