By Paul Minnis, The Republic
pminnis@therepublic.com
Changing the state constitution to reflect - and ultimately protect - Gov. Mitch Daniels' proposed property tax changes would prove a challenging and lengthy job.
State officials wanted it that way so the constitution could not "change on a whim," said Mary Jane Michalak of Indiana Department of Local Government Finance.
Daniels' plan would cap property tax limits, raise the sales tax by a percent, replace elected assessors with a single professional assessor in each county and expand each county tax board's power to approve all spending plans, among other changes.
Only the tax-caps part would require a constitutional amendment, said Jane Jankowski, Daniels' press secretary.
Daniels has proposed that lawmakers at first implement the change by law and then amend it into the constitution to make it more difficult to repeal.
The constitution can be changed in three steps, starting at the state government level and ending with a general election referendum.
Michalak said each house of the General Assembly must pass each change with majority votes.
If a change gets that far, it must again be approved by a General Assembly no sooner than two years later. It would then appear as a referendum in a statewide general election. If a majority of voters approves the change, it becomes law.
Due to the built-in wait, no constitutional change could occur until about 2010.
Under the fastest-case scenario, General Assembly committee meetings, all open to the public, could commence in 2008 and pass changes in April 2009, Michalak said.
The ballot referendum could go to voters in November 2009. January 2010 would mark the constitutional change.
The General Assembly, which meets January through April this year, must adopt Daniels' tax-cap plan before a formal motion would begin to change the constitution. Lawmakers have said the tax plan would dominate the short legislative session because of its multifaceted proposals.
"There have been many efforts to fix the property tax problem over the years," Jankowski said.
"But the state is still struggling with it."
Constitution
Gov. Mitch Daniels' proposed property tax changes would entail a state constitutional amendment to cap each homeowner's property taxes at 1 percent of his home's value. Rental properties would be capped at 2 percent and businesses at 3 percent.
According to Daniels' television remarks, "This last provision must be added to the state's constitution to ensure its permanence and guarantee that no Hoosier ever again pays more than a penny on the dollar of their home's value."