Evansville Courier & Press
A few months back when it became apparent Gov. Mitch Daniels and the Indiana Legislature were serious about attempting the near impossible - passing major property tax relief legislation in a short session - we offered one piece of advice. So basic was that advice that some surely thought of it as an oversimplification.
But today, with less than two weeks to go before the March 14 legislative deadline, that advice makes even more sense than before. It was, and is, keep it simple.
Otherwise, March 14 will come and go with no tax relief and with an unnecessary and costly special session on tap, or with a monstrosity of a confusing tax package, unlike any envisioned in October when Daniels started this ball rolling.
With pressure on the governor and lawmakers from property owners in some parts of the state to give them relief, the governor put a plan on the table that seemed doable, in part if not in total.
He proposed to increase the sales tax by 1 cent, shift some costs for schools and child protection services from local government to the state, cap property tax increases, and require referendums on major construction projects. There is more, including the removal of township assessors from the process and writing the caps into the constitution, but no one expected all of his proposals to be approved this year. Daniels estimated that his proposals could result in a reduction of one-third in property tax bills.
The Legislature, aware that 2008 is an election year and that anger about property taxes in some counties will bring out voters, took Daniels' plan and ran with it with uncommon speed.
That should have been enough for the Legislature to engage in debate and discussion of differences, before sending the package on to a conference committee for the final work and voting before March 14.
It should have been, but it wasn't. Recall that Republican Daniels' original proposal would cap property taxes on homesteads at 1 percent of assessed value, taxes on rental properties at 2 percent of assessed value and taxes on businesses at 3 percent.
Those proposed caps are a contentious enough issue heading into the final days of the session, but House Democrats have unnecessarily complicated matters by changing the cap on homestead property taxes to 1 percent of household income instead of 1 percent of assessed value.
It is a ridiculous idea - tying a tax based on the value of property to household income.
House Democrats say they are protecting senior citizens and others on fixed income with this provision, but the truth is, as of Friday, they had no analysis to show its impact, should it be approved.
In short, it seems administratively unworkable, while creating opportunities for tax cheats to avoid paying property taxes.
But what it may prove to be in the end is a negotiating chip for Democrats. We are not sure what they would want in return, but no one should want this provision to become law.
It seems that in most every legislative session Hoosiers watch in frustration as lawmakers take key legislative matters down to the final minutes of the last day of the session. We would suggest that, given the stakes this year, taxpayers will find little humor in the usual game-playing.