EDITORIAL: Daniels fires starter pistol in race to property tax reform

Times of Northwest Indiana

Indiana Gov. Mitch Daniels is leading the transition from hand-wringing to solutions with his property tax reform proposal.

It's a starting point that offers hope for real change, but there are some rough spots that need work.

Under Daniels' plan, homeowners would never have to pay more than 1 percent of the assessed value of their homes in property taxes. The cap for rental properties would be 2 percent, and other business would see 3 percent caps. Agricultural land would be assessed according to the existing formula.

Under this proposal, the state would pick up the tab for child welfare and K-12 school operations.

There are many other details, too numerous to mention.

Daniels says the plan would reduce the property tax bite for the average Hoosier homeowner by about one-third, although the actual amount would vary widely. He estimates about 91 percent of homeowners in Lake County and 75 percent in Porter County would benefit.

There's a catch, of course. The state sales tax would jump from 6 percent to 7 percent.

Particularly troublesome is his plan to require a public referendum for any significant local construction project.

These referendums have hamstrung school districts in Illinois, and the quality of education has suffered as a result. That must not happen in Indiana.

However, the extravagant spending for elaborate school buildings must stop. Emphasis should be placed on classroom instruction, not on classroom construction.

Likewise, it cannot be said often enough that the best way to provide tax relief is to cut government spending. This is especially true in Lake County, where wasteful spending abounds.

The Good Government Initiative reports identified numerous ways to both make government more efficient and less expensive. The public must continue to demand implementation of those recommendations.

Daniels has thrown out the first ball in the property tax reform game. The Indiana Commission on Local Government Reform is due to issue its recommendations by the end of the year.

Now let's hear from other interested groups, particularly legislators, so a lasting solution to the property tax crisis can be found.