HB 1487
July 28, 2016 at 4:25 p.m.
By -
We have entered the final days of session and are now finalizing the details of many bills in conference committee. This is where bills that were amended will be discussed by Republican and Democrat members of each chamber so they can come to an agreement between all four caucuses. Bills that are approved by the conference committees will go back to both chambers for a final concurrence vote before heading to the governor's desk for his signature to become law.
Currently, House Bill 1487 is probably the most heavily debated topic currently being discussed at the Statehouse. Many Hoosiers are concerned about the rising rates of their property taxes and this bill has the potential to bring that much needed relief.
Rep. Jeff Espich has proposed a local government finance reform plan that would provide immediate property tax relief while restructuring the way local taxes are collected. This plan would begin to direct the burden of school construction costs away from property taxes. On average, this year's property taxes are expected to rise by nearly 15 percent across the state. Espich's plan would include a supplemental Homestead Credit that would offset approximately 8 percent of this projected property tax increase. Because school construction accounts for about 37 percent of property tax growth in the state, Espich has proposed funding these projects with local income taxes. The School Construction Income Tax would give school corporations the flexibility to control their own growth and spending without relying on revenue from property taxes. The plan also includes a provision allowing taxpayers to seek voter approval of major construction projects. Under this plan, local citizens would have the option of using a simple ballot question, rather than a cumbersome petition and remonstrance proceeding, on projects that exceed $50 million or 2 percent of a taxing unit's assessed valuation.
In addition, counties going forward would choose to fund their future growth in spending through either the property tax, or through the local option income tax. If this income tax was chosen, then the counties' property tax levies would freeze and all new revenue growth would come through the income tax. This plan allows for home rule and provides local units of government more flexibility in determining their tax structure.
The General Assembly is looking for ways to reduce our reliance on property taxes while controlling growth and spending. I am hopeful that we will be able to find a solution by the end of the 2007 legislative session. I encourage you all to contact me with any ideas, questions or concerns you have about property taxes or any other legislation being debated this session. I may be reached at 800-382-9841 or e-mail me at [email protected] or send letters to: 200 W. Washington St. Indianapolis, IN 46204.
Bill Ruppel
Indianapolis, via e-mail[[In-content Ad]]
We have entered the final days of session and are now finalizing the details of many bills in conference committee. This is where bills that were amended will be discussed by Republican and Democrat members of each chamber so they can come to an agreement between all four caucuses. Bills that are approved by the conference committees will go back to both chambers for a final concurrence vote before heading to the governor's desk for his signature to become law.
Currently, House Bill 1487 is probably the most heavily debated topic currently being discussed at the Statehouse. Many Hoosiers are concerned about the rising rates of their property taxes and this bill has the potential to bring that much needed relief.
Rep. Jeff Espich has proposed a local government finance reform plan that would provide immediate property tax relief while restructuring the way local taxes are collected. This plan would begin to direct the burden of school construction costs away from property taxes. On average, this year's property taxes are expected to rise by nearly 15 percent across the state. Espich's plan would include a supplemental Homestead Credit that would offset approximately 8 percent of this projected property tax increase. Because school construction accounts for about 37 percent of property tax growth in the state, Espich has proposed funding these projects with local income taxes. The School Construction Income Tax would give school corporations the flexibility to control their own growth and spending without relying on revenue from property taxes. The plan also includes a provision allowing taxpayers to seek voter approval of major construction projects. Under this plan, local citizens would have the option of using a simple ballot question, rather than a cumbersome petition and remonstrance proceeding, on projects that exceed $50 million or 2 percent of a taxing unit's assessed valuation.
In addition, counties going forward would choose to fund their future growth in spending through either the property tax, or through the local option income tax. If this income tax was chosen, then the counties' property tax levies would freeze and all new revenue growth would come through the income tax. This plan allows for home rule and provides local units of government more flexibility in determining their tax structure.
The General Assembly is looking for ways to reduce our reliance on property taxes while controlling growth and spending. I am hopeful that we will be able to find a solution by the end of the 2007 legislative session. I encourage you all to contact me with any ideas, questions or concerns you have about property taxes or any other legislation being debated this session. I may be reached at 800-382-9841 or e-mail me at [email protected] or send letters to: 200 W. Washington St. Indianapolis, IN 46204.
Bill Ruppel
Indianapolis, via e-mail[[In-content Ad]]
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