The Goshen News
The Indiana House of Representatives pulled a late-night surprise Wednesday by voting unanimously to eliminate property taxes in the state by 2009.
It’s a symbolic gesture since no one really thinks it will happen. What’s even worse is that there was no indication of how the lost revenue from property taxes could be replaced.
Skittish lawmakers are reluctant to discuss tax increases, even if there is a concurrent reduction in other taxes.
Property taxes will likely increase significantly over the next few years. A variety of factors will cause this, including a state budget that caps property tax relief payments, a new assessment rule, local government spending increases and the elimination of the inventory tax.
A cigarette tax hike proposal died in a House committee, and likely can’t be resuscitated. This measure was suggested by Gov. Mitch Daniels in order to reduce the number of young smokers in the state.
This anti-tax mindset is pervasive in the Legislature and perhaps led to Gov. Daniels’ plan to lease the Indiana Toll Road. Only a small increase in the gas tax has been approved in recent years instead of much larger boosts needed to build and maintain the state’s roads.
And even the tolls on the Toll Road have languished, since lawmakers are hesitant to propose regular toll increases on a government-owned asset.
Hoosiers wonder why state government couldn’t operate the Toll Road and make money, but lawmakers would object to hiking tolls on a regular basis. It would make constituents angry and the politicians may not be re-elected.
Approving a proposal to eliminate property taxes without including a method to replace the revenue is just political posturing.