(STATEHOUSE) - The Senate has approved a constitutional amendment to cap property taxes.
On a 40-7 vote, Senators endorsed a so-called circuit breaker capping taxes at 1% of your home's value. Taxes on farms and rental properties would be capped at 2%, with business taxes held to 3%.
The proposal makes an exception for Lake and Saint Joseph Counties, allowing them to impose taxes above the caps to cover their debt payments until 2019. For the other 90 counties, the caps would take effect in 2012.
Schools would be able to ask voters to approve taxes beyond the caps in a referendum. The house will vote on the amendment later today.
If approved, the amendment still must pass the legislature again in either 2009 or 2010, then go to the voters for final approval in November 2010.
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