Well it's about time. There is a lot of debate regarding how to fix the Indiana property tax problem, but at least we are now working towards a solution. On Tuesday, Indiana's Governor Mitch Daniels proposed the following changes to address Indiana's serious property tax problems:
- Cap every home owner's property taxes to no more than 1% of a home's true value
- Increase sales tax by 1% and use a "small share" of the state's budget surplus
- Move school operating costs and the cost of protecting abused and neglected children to the state level
- Control excessive government spending on school construction, libraries, fire departments, and local services by making the County Tax Board responsible for spending
- Any new capital project or spending in excess of the growth of local income be approved by voter referendum
- Elimination of political assessors and the appointment of a single qualified and certified assessor to be responsible for future assessments
I've reviewed many discussions regarding the proposed changes and there are people on both sides of the fence. Non-homeowners are upset that they will be required pick up a larger portion of taxes if the burden is pushed to sales tax. There have been requests to eliminate property taxes for those over 65, so they can truly own their home. There is also a debate that transferring the tax burden to sale tax will hurt the lower and middle class.
I don't know that we can find a solution that will make everyone happy, but I do believe the proposed changes will be an improvement over our current situation. While the Governor's changes aren't exactly in line with the proposed changes by the IAR, they are very similar in nature.
As a Realtor, I am tired of seeing friends, family, clients, and myself hurt by the current property tax assessment system. Change is needed and needed soon. I am a little surprised that no one has proposed to use income from the lottery to replace the reduction required in property taxes.
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