Republicans Call For Special Session On Tax-Relief

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(STATEHOUSE) - Indiana House Republicans are proposing an additional 200-million dollars in property-tax relief, and calling for a special session to enact it.

Republicans are calling for an additional 100-million dollars in homestead credits, and an extra two months to apply for them. They'd also have the state pick up 50 million dollars in child-welfare costs. The GOP plan would also convert the upcoming 300 million dollars in property tax rebates to a credit on fall tax bills.

Minority Leader Brian Bosma says county councils should decide how to parcel it out, with the option of targeting relief to specific classes of property owners, or delivering the same percentage to everyone as currently planned. Speaker Patrick Bauer says the GOP's proposing too little, too soon.

Bauer proposed earlier this month the state should pay 300 million in welfare costs as a reward to counties who adopt a local income tax. He dismisses the smaller amount as insignificant and temporary.

Both plans would have the state pay for increases in welfare costs over a fixed baseline. But Bauer's plan would set last year's budget as the baseline, while Republicans would use a five-year average and adjust for inflation.

Bauer says it's too early to return to the Statehouse to craft a solution, because three-quarters of the counties haven't even sent their tax bills yet. Both majority caucuses -- Senate Republicans and Bauer's House Democrats -- have resisted a special session, saying it would be easier to hammer out a deal when the legislature reconvenes in November.

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