INDIANAPOLIS | With angst over soaring property tax bills continuing to mount. Gov. Mitch Daniels moved Wednesday to give counties more time to consider shifting future costs to local income taxes.
The Republican governor also said he has asked legislative leaders to consider a range of more immediate tax-relief options that could be considered if he were to convene a brief special session of the General Assembly.
While Lake and Porter counties won't be ready to mail property tax bills for another two months, homeowners in Indianapolis and other pockets of the state have begun receiving bills measuring more than a third higher than last year. State estimates show residential bills soaring more than 35 percent in Marion, Elkhart and a half-dozen other counties.
A number of factors, including the elimination of the tax on business inventories and a new assessment system known as trending, are to blame for the crushing blow befalling homeowners.
Assessors across the state have struggled to meet deadlines under the new assessment system. And Lake and Porter are among the counties farthest behind in their trending work, which is why region tax bills won't be ready until at least September.
No one knows whether the impact on Northwest Indiana homeowners will be as severe as what their Indianapolis counterparts now are experiencing.
In April, legislators were told residential bills statewide would spike an average of 24 percent. And they quickly crafted a plan to lower the average spike to about 8 percent by sending homeowners $300 million in partial rebate checks at the end of this year.
On Wednesday, Daniels said one legislative option would be to reallocate the $300 million, steering it only to homeowners hit the hardest by the higher tax bills. He also said scrapping the rebate check and applying the money as direct credits could be considered.
"The ideas I'm looking at would require a special session," Daniels said.
The governor said he is considering a brief special session, but only would call one if legislative leaders can agree upon its objectives beforehand. House Republican leaders say they're ready and willing to go to work. But Democratic House Speaker Pat Bauer said there is no need to discuss a special session until Daniels offers a "defined bipartisan proposal that offers long- and short-term solutions."
What's all the fuss about?
While Lake and Porter counties won't be ready to mail tax bills until at least September, homeowners in Indianapolis and other areas of the state are starting to be hit with whopping property tax hikes -- more than 35 percent in Elkhart and Marion counties.
A number of factors, including the elimination of the tax on business inventories and a new assessment system known as trending, are to blame for the spike, as well as the late tax bills. Lawmakers expected residential tax increases would spike an extraordinary 24 percent and passed a rebate plan this spring to lower the average spike to about 8 percent.
But with some areas now seeing even higher residential bills, lawmakers and Gov. Mitch Daniels have been scurrying to find a solution, which could mean a special session of the General Assembly.
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