New Indiana House bill aims to limit property taxes even more than tax caps do

By Chris Fyall, Herald-Times

cfyall@heraldt.com

A major piece of legislation passed by the Indiana House last week could, for the second time in two years, radically change how property taxes work in the Hoosier state.

Unlike the tax cap system passed in 2008 - and championed by Republicans - this proposal does not target tax rates; it targets tax bills.

Proposed by Rep. F. Dale Grubb, D-Covington, it also comes from the other side of the political aisle. Grubb is the chairman of the House's Democratic Caucus.

The bill, which is now in the Indiana Senate, puts a ceiling on how fast any individual property tax bill can grow. In any year, no bill will be allowed to grow faster than the Consumer Price Index, a national measure of inflation.