By John Byrne, Post-Tribune staff writer
A property tax plan by Democrats in the state Senate would take into account homeowners' incomes and the value of their properties in determining how much Hoosiers would pay.
Sen. Frank Mrvan, D-Hammond, will join other Democratic leaders in formally unveiling the plan next week.
But Mrvan said it uses a "sliding scale" to take into account both the property's assessed value and how much money its occupants make.
"So if you live in a $400,000 home and make $100,000, you would pay more than if you lived in a $400,000 home and made $60,000," Mrvan said.
The Senate Democrats' plan also would increase financial assistance for low-income homeowners, Mrvan said.
The Democrats will be entering a field crowded with property tax ideas.
Gov. Mitch Daniels' proposed tax overhaul has itself been overhauled by House Democrats, who want to base property tax payments for homeowners solely on income.
And Senate Republicans have introduced their own plan, which phases in property tax caps of 1 percent of assessed value for homeowners, 2 percent for rental properties and 3 percent for businesses.
Democrats are in the minority in the Senate, so their plan will have a hard time gaining traction in the Statehouse.
But Mrvan said their plan is the fairest proposal put forward so far.