(STATEHOUSE) Jan. 24, 2008 - Hoosiers are a step closer to property tax relief after the Indiana House of Representatives on Thursday passed House Bill 1001 by a vote of 93-1. The bill now heads to the Indiana Senate. The bill contains about $700 million in new property relief, along with $250 million in already scheduled relief for 2008 and about $300 million in relief in 2009. The immediate relief should cut most homestead property tax bills by about one-third. It also removes school operating and transportation funding and child welfare funding from local property tax, shifting the responsibility to the state. "This is only the half-way point of House Bill 1001's journey through the legislature," said Rep. Cleo Duncan (R-Greensburg). "This is the only vehicle we have to enable us to vote for real property tax restructuring. While it is far from perfect, I believe it is a work in progress. This is the best opportunity we have had since Gov. Otis Bowen's reform package in 1973 to significantly reduce property taxes in Indiana." Several elements of the House Republicans' Standards for Success were eliminated or altered in the final bill, such as a state spending cap and a strong referendum process. The bill does not have a state spending cap, and voters would be allowed to vote only on school projects not directly related to classroom learning, such as athletic fields. Although the bill has been changed from its original form, it still contains several elements that House Republicans have fought for. It offers immediate property tax relief, includes caps on property taxation and includes at least some form of public referenda on public spending. Rep. Duncan encourages constituents to contact her with questions or concerns through e-mail at h67@in.gov, by calling the Statehouse at 1-800-382-9841 or by writing her at 200 W. Washington St, Indianapolis, IN 46204.
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