INDIANAPOLIS (Jan. 26, 2016) — The House of Representatives unanimously supported legislation co-authored by State Rep. Jeff Thompson (R-Lizton) that would provide financial relief to Hoosier schools.
House Bill 1109 would allow school corporations throughout Indiana to allocate circuit breaker credits proportionately amongst all school property tax funds for an additional three years. The bill does not allow for an increase in property taxes. Thompson said this added flexibility would provide much-needed financial relief for school corporations’ transportation and debt service funds. These include Brownsburg, Avon, Danville and North West Hendricks school corporations.
“In 2015, 90 school corporations throughout Indiana had circuit breaker losses of at least 10 percent in their transportation fund,” Thompson said. “By extending the ability for schools to reallocate these credits among funds for another three years, we are ensuring that our schools are able to continue funding their student transportation services.”
Circuit breaker caps limit the amount that taxpayers pay in property taxes to no more than a fixed percent of their property’s gross assessed value. If the tax liability exceeds the maximum allowed under the cap, then a credit would be applied to reduce the liability.
The bill now moves to the Senate for further consideration.
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State Rep. Jeff Thompson serves as K-12 Subcommittee Chairman of the Ways and Means Committee. He also serves on the Elections and Apportionment Committee and the Education Committee. Rep. Thompson represents portions of Hendricks and Boone counties.
