The proposal to permanently place the tax caps in the state constitution passed the Senate Tax and Fiscal Policy committee by a party line vote of 8-4. The measure now heads to the full Senate for a vote.
State Senators Ed Charbonneau, Brandt Hershman and Sue Landske voted in favor of the permanent tax caps. State Senator Lonnie Randolph voted against the measure.
Beginning next year, the caps will limit property tax bills to 1% for homeowners, 2% for rental property and 3% for businesses. The caps, enacted last spring by HEA 1001, were designed to give long awaited relief from escalating property tax bills.
If the tax cap proposal passes the legislature this year without any changes, voters will get the opportunity to make the caps permanent via referendum in 2010.
Democratic House Speaker Patrick Bauer has already said he is not ready to pass the tax cap proposal this legislative session until the full ramnifications of the caps on local government are known.
Governor Mitch Daniels and Republicans in the Senate and House want the caps added to the constitution where they would be safe from future legal challenges and legislative action.
"We could wait until next year to do this," said Senator Luke Kenley of Noblesville.
"But the message it would be sending the public is that we really don't know if we want to this."
What it really means is the Democrats want to make sure their lobbyist friends don't lose out on a piece of the pie and to heck with the taxpayers!
The tax cap proposal needs to get passed this legislative session. Let the voters decide in a referendum if we want the caps or not. It is our money and our government. Give us the choice!