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Property Taxes To Rise With New Legislation

Last updated on Wednesday, January 23, 2008

(STATEHOUSE) - As it now stands, a plan to cap your property taxes would actually raise them next year. But legislators emphasize they’re not done working.

The senate's version of Governor Daniels' property tax circuit-breaker anticipates a one-time 25-percent cut in tax bills this year through an expanded homestead credit. By the time the cap takes effect next year, that credit will be gone, leaving an average net increase of 11-percent.

Tax and Fiscal Policy Chairman Luke Kenley (R-Noblesville) cautions the relief package moving through the House will alter the bottom line.

Daniels has called for capping property taxes at one-percent of a home's assessed value. The cap would be two-percent for rental properties and three-percent for businesses.

Kenley's committee unanimously approved a two-year phase-in of the cap. The full Senate will vote on the circuit-breaker proposals next week.

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