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Sunday, November 09, 2008

Ind. Law - "Approving a proposed constitutional amendment that would put limits on property-tax bills, so it can be put on the ballot for ratification in 2010"

Lesley Stedman Weidenbener of the Louisville Courier Journal writes today about one of the big issues facing the 2009 General Assembly:

[Governor] Daniels and Republicans say one of their priorities will be approving a proposed constitutional amendment that would put limits on property-tax bills, so it can be put on the ballot for ratification in 2010.

Republican and Democratic lawmakers approved the amendment last session for the first time as part of a larger property-tax package. But constitutional amendments require approval by two separately elected legislatures before they can be ratified.

That means lawmakers must approve it again in 2009 or 2010 or be forced to start over.

House Speaker Pat Bauer, D-South Bend, thinks it might be a good idea to wait until 2010. That's because property tax reform passed this year will start phasing in a cap on tax bills in 2009, limiting revenues to some local governments and schools.

Bauer wants to see how local officials adapt to the lost revenue before moving forward with the amendment.

Senate Republicans, though, think that's a bad idea.

Senate Appropriations Chairman Luke Kenley, R-Noblesville, said he feels lawmakers have a sort of "contract" with voters to put those limits into the constitution. That's in part because the larger legislative package that cut property taxes also boosted sales taxes.

Waiting, he said, means lawmakers might buckle under pressure from local officials complaining they'll have to cut spending to accommodate lower revenues. That's unacceptable, Kenley said.

The issue is bound to be one of the session's biggest quarrels -- but not the only one.

Posted by Marcia Oddi on November 9, 2008 10:57 AM
Posted to Indiana Law