Statement from Senator Young on Indiana Property Tax Reform Proposals

INDIANAPOLIS, IN - The following is a statement released by Senator Richard Young regarding Governor Mitch Daniels' proposed property tax reforms in Indiana.

"I asked the Governor to engage in our discussions for property tax reform during the legislative session this spring and I'm pleased to finally hear from him this week. Several of the ideas included in his plan have been proposed and supported by Democrats in the Senate and House in the past, including the removal of child welfare from the property tax levies.

I am concerned about the plan's reliance on an increase in the sales tax because I believe it creates a more regressive tax environment and may unfairly harm low and middle-class Hoosiers, particularly those with fixed incomes. Senate Democrats have long advocated for a more progressive overall tax structure, and I would like to see consideration given to make that happen.

I appreciate the Governor's focus on Hoosier homeowners. As State Senator Lindel Hume pointed out in his plan released earlier this week, property tax relief funded by sales and income taxes must be limited to Homestead and renter relief. If property tax relief was spread across the board, more than half of the relief would benefit businesses at the cost of Indiana workers.

I agree with the Governor that we need a permanent solution. However, I want to clarify that at 1% cap will not flatline homeowners' property tax bills. Under the Governor's plan bills will continue to increase as a home appreciates in value.

We look forward to recommendations from the Commission on Local Government Reform and Commission on State Tax and Financing Policy on other potential local government reform and spending reductions as well as reconsideration of the assessment process."

For more information on Senator Young, his legislative agenda or other State Senate business call 1-800-382-9467 or visit http://www.senatedemocrats.in.gov./

Source: Statehouse Press Release

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