The Post-Tribune
With the start of the 2009 session of the Indiana General Assembly still a month away, there already is a point of contention between Republicans and Democrats.
At issue is a constitutional amendment capping property tax bills. Republicans want to act next year. Democrats want to wait until 2010. We side with the Democrats for a variety of reasons.
The General Assembly last year approved phasing in property tax caps over the next two years as part of a tax reform package that included an increase in the sales tax in exchange for shifting most school costs away from property taxes. And legislators want to make it permanent by amending the constitution.
Whether the Legislature approves the constitutional amendment in 2009 or 2010, it won't appear on the ballot for voter ratification until the fall of 2010.
It seems there is a bit of politics involved in the urgency of the Republican stance to get the job done in the coming legislative session.
Senate Appropriations Chairman Luke Kenley, R-Noblesville, said it is important to act quickly because people are concerned that the caps are temporary.
We think it is best to wait until 2010 to see the impact the property tax caps as they are phased in.
The law passed last year fixes the property tax cap at 1.5 percent of a home's assessed valuation for 2008 taxes that are payable in 2009. The cap is 2.5 percent for rental properties and 3 percent for businesses. The cap for the 2009 taxes payable in 2010 is 1 percent for homes, 2 percent for rental properties and 3 percent for businesses.
Particularly given the financial condition these days, it makes sense to wait on the amendment until we see the total impact of the caps on government.
Prematurely going to war on something both sides basically agree on isn't smart government.