Evansville Courier & Press

The Indiana House has just passed a modified version of Gov. Mitch Daniels' property-tax restructuring plan.

The massive proposal, House Bill 1001, passed the Democratic-controlled House by a vote of 93-1. State Rep. Craig Fry, D-Mishawaka, was the only no vote.

As proposed, Daniels' plan would cap homestead property taxes at 1 percent of assessed value, increase the sales tax to 7 percent, require referendums on some public construction projects and abolish township assessors, among other things.

In a late-night session Tuesday, the House made numerous changes to the Daniels bill, including limiting referendums to projects other than education-related school facilities. Despite changes, the basic elements of the Daniels plan remain more or less intact in the bill.

During House debate today, state Rep. Dennis Avery, D-Evansville, said he had new concerns about what the fiscal impact of the modified bill would be. "We added to cost of the bill significantly," Avery said today. "I don't think we know how much this is going to cost us."

All local representatives voted for it, including Republican Suzanne Crouch and Democrats Dennis Avery, Kreg Battles, Dave Crooks, Phil Hoy, Dennie Oxley, Russ Stilwell and Trent Van Haaften.

House Bill 1001 now goes to the state Senate, which is currently hearing its own separate versions of the Daniels property-tax restructuring legislation. While the House heard it as one massive bill, the Senate broke it up into 11 bills and four constitutional amendments, some of which have already passed the Senate.

Attempts to reach a final compromise between the House and Senate versions are likely before the Legislature adjourns March 14.

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