Indiana Property Tax Cap Amendment, Public Question 1 (2010)
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Text of proposal
Summary
The summary of the measure reads:[1]
"Circuit breakers and other property tax matters. Requires, for property taxes first due and payable in 2012 and thereafter, the general assembly to limit a taxpayer's property tax liability as follows: (1) A taxpayer's property tax liability on homestead property may not exceed 1% of the gross assessed value of the homestead property. (2) A taxpayer's property tax liability on other residential property may not exceed 2% of the gross assessed value of the other residential property. (3) A taxpayer's property tax liability on agricultural land may not exceed 2% of the gross assessed value of the property that is the basis for the determination of the agricultural land. (4) A taxpayer's property tax liability on other real property may not exceed 3% of the gross assessed value of the other real property. (5) A taxpayer's property tax liability on personal property may not exceed 3% of the gross assessed value of the taxpayer's personal property that is the basis for the determination of property taxes within a particular taxing district. Specifies that property taxes imposed after being approved by the voters in a referendum shall not be considered for purposes of calculating the limits to property tax liability under these provisions. Provides that in the case of a county for which the general assembly determines in 2008 that limits to property tax liability are expected to reduce in 2010 the aggregate property tax revenue that would otherwise be collected by all units and school corporations in the county by at least 20%, the general assembly may provide that property taxes imposed in the county to pay debt service or make lease payments for bonds or leases issued or entered into before July 1, 2008, shall not be considered for purposes of calculating the limits to property tax."
Constitutional changes
If enacted by a simple majority of Indiana voters, the measure would amend Article 10, Section 1 of the Indiana Constitution.[1]
Support
Media editorial positions
- The Indianapolis Star is in favor of capping taxes, as an editorial stated, "Reining in spending should be a first order of business for all levels of government. But where government must be financed, far better that it be by way of a diverse source of taxes and fees accompanied by a diminished reliance on the property tax for local finance. Property tax caps will help facilitate that change."[2]
Opposition
Opponents
- Senator James Lewis and Representative David Cheatham stated they will vote against the measure during the November election, citing that the measure is unconstitutional.[3]
- Indiana Chamber of Commerce President Kevin Brinegar stated his and the chamber's opposition to the measure during an address to about 30 local business owners at Indiana State University. Brinegar stated about the measure, "Twenty-five, 50, 100 years from now, we’ll look back on this and realize what a mistake it was...It’s going to be the law of the land."[4]
- Bill Waltz, vice president of taxation and public finance for the Chamber of Commerce, stated that although the organization had no plans to campaign against the measure, "We'll continue to have concerns about their impact and how they will impact our business climate and situation," adding that the measure does not encourage business since companies would have to pay three times as more in taxes as homeowners.[5]
- Indiana Farm Bureau is an opponent of the measure, stating that they object to having different tax rates for different categories of property in the state. Bob Kraft, director of state government relations for the Indiana Farm Bureau, stated a concern that the proposed taxes would put a burden on people who benefit the least from services provided by the state.
Arguments
- According to the Indiana Chamber of Commerce, the referendum sets different property tax limits on different categories of property. Residential taxes will be capped at 1 percent, rental property in residential areas will be capped at 2 percent and taxes for business will be capped at 3 percent. As a result, the Chamber of Commerce gave the example that it wouldn't be far-fetched that a $200,000 residence would have a lower yearly property tax bill than a $100,000 business.
Polling
- See also: Polls, 2010 ballot measures
In a poll conducted by the Evansville Courier Press, there was a strong amount of support of the amendment. The poll is currently being conducted, so results may change until completion.
A survey performed by Ball State University also showed strong support for the measure. The survey was done in December 2009 with the results revealed on December 15. The Bowen Center for Public Affairs at the university teamed up with the Princeton Survey Research Associates to survey 600 Indiana residents.
Results of the polls are as follows:[6][7]
| Date of Poll | Pollster | In favor | Opposed | Undecided | Number polled |
|---|---|---|---|---|---|
| Jan. 2010 | Evansville Courier Press | 57% | 24% | 18% | 279 |
| Dec. 2009 | Ball State University-Muncie | 64% | 22% | 14% | 600 |
Last updated on February 26, 2010.
Path to the ballot
The Indiana House of Representatives approved the measure on January 11, 2010. The Indiana State Senate approved the measure on January 19, 2010 on at 35-15 vote.[1][8]
The Indiana Constitution is one of the most difficult in the country to amend, requiring that a proposed amendment be approved by two successive sessions of the Indiana State Legislature with an intervening election. The tax cap amendment was first passed through the 2008 session of the legislature.[9]
The motion to refer the proposed property tax cap amendment to the Indiana ballot was sponsored by Republican state senators Luke Kenley, Patricia L. Miller and Brandt Hershman.
Similar measures
2010
- Three measures in Colorado that are going to be considered by voters are similar to the tax cap proposal in Indiana. Amendment 60, one of the three measures, would cut school property tax rates in half by 2020 and would replace those cuts with state funds. Another measure would cut income and real estate taxes and decrease fees on auto registrations, while another would strictly limit borrowing in the state.[10]
Timeline
The following is a time line of events relating to the ballot measure:
- 2008: The tax cap amendment was first passed through the legislature.
- December 15, 2009: Ball State University conducted a poll that showed strong support for the measure. Results released on this date.
- January 11, 2010: The Indiana House of Representatives approved the measure.
- January 19, 2010: The Indiana State Senate approved the measure by a 35-15 vote.
- March 2, 2010: The Indianapolis Star published a commentary in favor of capping taxes.
See also
- Indiana Property Tax Exemption, Question 1 (2004)
- Indiana State Senate
- Indiana House of Representatives
- Indiana 2010 ballot measures
- 2010 ballot measures
- Amending the Indiana Constitution
External links
- Text of Senate Joint Resolution 1
- Bowen Center at Ball State University
- Hoosier Survey Official Results
References
- ↑ 1.0 1.1 1.2 1.3 Text of Senate Joint Resolution 1
- ↑ Pal-item.com, "Tax caps to facilitate needed changes", March 2, 2010
- ↑ The Madison Courier, "Cheatham, Lewis discuss legislation at final Third House", March 22, 2010
- ↑ TribStar.com, "State Chamber chief: Tax caps likely to pass", July 7, 2010
- ↑ Evansville Courier & Press, "Tax cap opponents have tough sell | POLL", January 31, 2010
- ↑ Evansville Courier Press, "Poll: What is your opinion of the proposed property tax caps in Indiana?", January 31, 2010
- ↑ Building Indiana, "Survey: Hoosiers Favor Property Tax Cap", December 15, 2010
- ↑ South Bend, "Indiana property tax measure clears hurdle in House", January 12, 2009
- ↑ "Tax Cap Amendment Passes Senate 35-15"
- ↑ Journal Gazette, "‘Evil triplets’ no worse than Hoosier tax caps", May 25, 2010
