[r90] HB 1001Passes House With Key Components in Place (1/24/2008)

Thursday, January 24, 2008

Start Date: 1/24/2008 All Day
End Date: 1/24/2008

(STATEHOUSE) Jan. 24, 2008 - Today, Rep. Mike Murphy and his House colleagues voted 93-1 to advance HB 1001, which encompasses a 35-percent reduction in property taxes for Hoosier homeowners.

Work on the 935-page property tax bill had been frantic, with a late-night, second reading session on Tuesday that added 27 of over 100 proposed amendments.  Despite significant changes and additions, much of Gov. Mitch Daniels' original plan remains intact within the bill, including:

  • Expanded tax caps.
    • 1 percent assessed value for residential property.
    • 2 percent assessed value for rental property.
    • 3 percent assessed value for all other property.
  • Over $700 million in immediate relief.
  • Expanded homestead credits.
  • State assumption of remaining K-12 school operating costs and child welfare.

A major deletion from HB 1001 is the opportunity for voters to control spending for school projects.  A Democrat amendment limits referendums to only those projects not used for education, such as sports stadiums and swimming pools.  The original proposal allowed taxpayers to vote on all major school building projects.  Tax breaks for the elderly, farmers, renters and low-income workers were added to the bill, as well.

Although there are changes he would still like to see before final vote, Rep. Murphy is positive about the bill.

"Today, we took the first step toward the elimination of property taxes," said Rep. Murphy.  "The actions called for within the bill are reasonable and appropriate.  Even with the caps, local governments will see an 8-percent increase in funds over the next two years.  The cooperation demonstrated by my fellow legislators has been remarkable, and I believe as we move through the process, we will continue to refine this bill by adding the necessary spending limitations and removing unnecessary costs."

HB 1001 will move now to the Senate, where it will be heard and amended before returning to the House for vote in March.


Rep. Murphy encourages local constituents to contact him with questions or concerns through e-mail at h90@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.