Tax caps on fast track in Indiana General Assembly

INDIANAPOLIS — Efforts to add Indiana’s property tax caps to the state constitution are on the fast track in Indianapolis. This is just the third day of the General Assembly’s 2010 session, but both the House of Representatives and the Senate are scheduled to hear second readings today of joint resolutions that would put a tax cap amendment on the ballot in November. House Minority Leader Brian Bosma, R-Indianapolis, told his fellow representatives on the General Assembly’s opening day Tuesday that the tax cap is the top issue for Republicans during this 10-week session. “For the first time in state history, Hoosiers will have a permanent cap on their property taxes,” Bosma said. Senate President Pro Tempore David Long, R-Fort Wayne, also called for quick action on the tax caps Tuesday. Long said in his speech to the Senate that a final reading of the resolution could come Monday. House Speaker B. Patrick Bauer, D-South Bend, acknowledged Wednesday that the tax cap bills will likely move more quickly than any other proposals during this session. Bauer said he is concerned the caps could lead to budget crunches that could force localities to lay off teachers and public safety workers. The tax cap measure passed in 2008, but Bauer blocked it in 2009 to give local officials time to tell leaders in Indianapolis how it will affect budgets for local governments. “We gave them a year to see if they could make the case that they would have to lay off workers, and they didn’t,” Bauer said. “That case should have been made by the people on the front lines.” When asked Tuesday on the House floor if Democrats will propose any amendments to the resolution, Bauer answered, “I don’t have absolute certainty on that. I’m not ruling that out.” The caps are already state law. They limit property tax bills to 1 percent of a home’s assessed value, 2 percent on farm land and rental properties, and 3 percent on business properties. Including the caps in the constitution would simply make it more difficult to change them.