[r90] Relief is on the Way! (3/28/2008)

Friday, March 28, 2008

Start Date: 3/28/2008 All Day
End Date: 3/28/2008

Finally!  After many years of trying and many votes cast in frustration, I was able last week to help push through historic property tax relief for all homeowners.

Effective immediately, homeowners in Franklin, Perry and Warren Townships will see their property taxes cut by an average of 30 percent.  For example, if your property tax bill last year was $2,000, your bill this year should be approximately $1400.

There is more good news.  Going forward, now in law and soon in the constitution will be permanent property tax caps that will limit your residential taxes to 1 percent of your home's assessed value.  For example, if you have a home valued at $150,000 your taxes would be no more than $1500.

If you are a senior citizen, have a home valued at $160,000 or less and have an annual income of $40,000 or less, your property taxes will never be able to rise more than 2 percent per year.

All these measures were passed in order to bring your tax burden under control and to limit government spending so that government does not grow faster than your ability to afford it.

Many of our neighbors understandably are concerned about the tax cuts' impact on school funding.  I can assure you that our public schools will be funded adequately:

  1. The legislature will invest $120 million over two years to help school districts like ours that may initially lose property tax revenue.
  2. The new law requires the state to assume all of the school general funds.  This means teachers' salaries will be protected from the effects of property tax limits.
  3. School districts will be able to spend above their caps if you and your neighbors approve the spending in a referendum.  After all, I trust you to know what's best for your children and their education.  It's your government and your school system.

No solution is perfect, but I am proud to have been able to join Governor Mitch Daniels in supporting historic tax reform at a time when my neighbors need it most. 

As always, it is an honor to serve you.