House Republicans Push For Zero Average Property Tax Increase

INDIANAPOLIS -- Indiana House Republicans on Tuesday proposed additional property tax relief for homeowners that they said would reduce average bill increases this year in the state to zero.

House Republicans, who are outnumbered 51-49 in that chamber, say their five-point plan would add $200 million in relief for homeowners on top of $300 million the General Assembly has already allocated.

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WatchBlog: Property Tax Analysis

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They also called for legislative leaders to meet with the governor and agree to call a special session to provide more immediate relief this year.

"The call to action is critical. It's clear that Indiana, segments of Indiana, not just in Marion County, but throughout this state, are in property tax crisis mode," said House Minority Leader Brian Bosma. "Action is appropriate. We concur that action without a plan is no action at all. We put a plan on the table."

The Republican plan calls for some things that have already been proposed, such as changing rebate checks into credits that homeowners would get this fall, and having the state pick up all new county welfare costs.

Republicans also want to appropriate an extra $100 million from the bigger-than-expected state surplus for property tax relief.

Their plan also would extend the deadline for applying for the homestead credit, which has already passed for next year's taxes, to Sept. 15 and make it apply to this year's taxes, too.

Property owners who saw their tax bills double or triple would still see higher bills under the Republican plan, but the amount of the increase would be significantly less.

Taxes on homeowners are expected to increase by 24 percent on average statewide this year, but many face bills that have spiked higher. Several factors are driving up bills in many parts of the state.

A law passed in April would provide $300 million in relief to be sent out as rebate checks late this year or early next year.

Those legislators also are looking to freeze local child welfare levies this year with the state picking up this year's levy increases.

Senate Republicans, who control that chamber 33-17, say they want more permanent, lasting reform and that it is too soon for a special session.

Republican Gov. Mitch Daniels wants some changes to provide tax relief sooner through credits and not rebates and has said that calling a special session is an option.

Daniels' press secretary, Jane Jankowski, said the governor supports part of the Republican plan but questions pulling money out of the surplus.

Democratic House Speaker Pat Bauer said the plan represents progress by House Republicans but doesn't go far enough. Bauer said there is not agreement on any plan to justify a special session.