Tax Relief Could Help, But Also Hurt Schools And Local Governments

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(INDIANAPOLIS) - The powerful Senate Tax Committee considering a property tax reform plan has been listening to hours of testimony from taxpayers, school representatives and local government officials.

The committee is discussing a House bill that contains most of Gov. Mitch Daniels' plan for property tax relief and reform. The plan would cap property tax bills and have the state absorb local costs for school operating and transportation expenses.

The plan also includes stricter spending controls on local governments and would raise the state sales tax from 6 percent to 7 percent to pay for some of the relief.

Supporters say the plan would bring significant relief to taxpayers. But schools and local governments worry it would cut their funding.

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