| | | © McCauley, Nicolas & Company, LLC | Spring 2008
Go back to E-letter | Printer-friendly version | | Tax Related | Indiana Property Tax ReformAfter months of debate, disagreement and compromise, Gov. Mitch Daniels signed into law on March 19th a property tax reform plan (HB 1001) he said would "inaugurate a new era of taxpayer protection in Indiana."
The measure, which will be financed by an increase in the sales tax from 6% to 7%, will cap homeowners’ property tax bills at 1.5% of their home’s assessed value in 2009 and 1% in 2010 and thereafter. The plan caps rental and agricultural property at 2.5% in 2009 and 2% in 2010, and business property at 3.5% in 2009 and 3% in 2010. The plan also takes the first step toward placing caps in the Indiana Constitution. Taxpayers will get a chance to approve the caps in the November 2010 general election if lawmakers approve them again next year.
The legislation will transfer to the State about $3 billion of costs that were previously on local property tax rolls, including school operating costs, child welfare levies, costs of juvenile incarceration in state facilities, state fair and forestry levies, health care for the indigent, pre-school special education levies, and costs of police and fire pensions.
HB 1001 places limits on local government spending and requires a referendum for new school and local government capital projects.
Various other changes have been included as part of HB 1001 as well. For more information, please visit www.mnccpa.com or call us at 288-6621. |  | | | © McCauley, Nicolas & Company, LLC | Spring 2008
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