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Legislators Pass Tax Reform, Some Worried About Long-Term Effects

Last updated on Saturday, March 15, 2008

(STATEHOUSE) - Legislators have overwhelmingly approved what’s being called Indiana’s most sweeping tax reform in 35 years, sending it to Governor Daniels for final approval.

After weeks of what one legislator called brutally hard negotiations, the final votes weren't even close. Only 17 House members and six senators voted against a bill cutting property taxes 26-percent, starting this year... then capping tax bills at one-percent of your home's value.

Negotiators worked to cushion the financial blow to schools and local governments, creating several appeal processes for extra leeway, and giving lake and Saint Joseph counties permission to collect taxes beyond the caps for debt payments.

Even so, some legislators, including some voting yes, say they're worried about the effects. They say the General Assembly may have to reopen the bill next year.

Legislators also passed a constitutional amendment to lock in the tax caps. It has to pass again in 2009 or 2010 before going to the voters for final approval.

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