(STATEHOUSE) Jan. 17, 2008 - The House Ways and Means Committee, which hears all proposed tax legislation, 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 nearly $900 million in tax cuts.
"To date, Gov. Mitch Daniels' proposal to cut spending growth has remained nonpartisan," said Rep. Espich. "So long as we continue in this spirit of bipartisanship, our efforts will result in good things for Hoosier taxpayers."
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. Espich encourages constituents to contact him with questions or concerns through e-mail at email@example.com; by calling the Statehouse toll-free at 1-800-382-9841; or by writing him at 200 W. Washington St, Indianapolis, IN 46204.