Members of the Indiana House on Monday overwhelmingly decided that property taxpayers should have their own voice on tax bill caps.
In a largely bipartisan vote, the House approved legislation that would add property tax bill caps into the state Constitution.
If the Senate acts accordingly, as expected, the tax measure would go to a referendum vote in November. Therefore, voters will to decide in November whether or not to amend the state Constitution to limit property taxes.
“I think it’s a good thing,” said Rep. Wes Culver (R-Goshen), who voted in favor of the bill. “All it’s doing is allowing the people to decide for themselves if they want it or not. It lets the people decide.”
Culver, who represents District 49 that includes Goshen, Bristol and Middlebury, said that recent polls indicate that roughly 70 percent of taxpayers will likely support limits on their property tax bills.
Currently the tax cap, commonly referred to as the “Circuit Breaker” in recent years, caps property taxes on homes to 1 percent of assessed value. The cap on rental property is 2 percent and the cap on business property is 3 percent. Those caps were passed in 2008.
Those opposed to the caps argue that the lack of revenue will hinder services statewide. Proponents argue that property owners carried too much of the state’s tax burden for too long.
“This piece of legislation is a step in the right direction,” said Rep. Jackie Walorski (R-Jimtown). “Hoosiers deserve the right to vote and make the ultimate decision in how to protect themselves financially. They must have the last word in the debate. It is their right as citizens and as taxpayers.”
Walorski represents District 21, which includes portions of Elkhart, Mishawaka and Nappanee.
Rep. Bill Ruppel (R-North Manchester) agreed with his neighboring Republican colleagues.
Ruppel represents District 22, which includes North Webster and most of Syracuse.
“I believe amending property tax caps to the Indiana Constitution should be decided by Hoosier taxpayers,” Ruppel said. “I am glad (the bill) moved through the House with such speed and support. Hopefully the Senate can pass (it) just the House and let Hoosier taxpayers ultimately decide this November.”
Rep. David Wolkins (R-Winona Lake), voted for the measure, but wasn’t as enthusiastic about it. Wolkins represents District 18, which covers portions of Elkhart, LaGrange and Kosciusko counties.
“I don’t like putting numbers in the constitution,” said Wolkins. “But, the current property tax cap is unconstitutional. That’s the only reason I voted for it. I’m mildly excited about it.”
Local Representatives Bill Friend (R-Macy) and David Yarde II (R-Garrett), also voted in favor of the bill. Friend represents District 23 that includes Milford, Nappanee and Wakarusa. Yarde represents District 52 that includes most of LaGrange County.
Staff writer John Kline contributed to this report.
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