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Plan Would Change Property Tax System
submitted by WJOB News
March 23, 2007 | 07:49 AM
INDIANAPOLIS (AP) - A new plan in the Legislature calls for the state to largely stop subsidizing local property taxes
and, instead, pay for most of school operating costs. Senate Tax Chairman Luke Kenley says the proposal would either encourage or mandate that local governments rely more on income taxes, rather than property taxes, to pay for most other services.The Republican plan would have the state pay all school operating costs, such as teacher salaries and instruction expenses, and have local school districts rely less on property taxes. Money for that move would come by the state shifting the two billion dollars a year it now pays in property-tax relief to cities, counties and schools. Kenley says although the state would pick up more costs for schools and child welfare expenses, it should not subsidize other local spending. Governor Mitch Daniels' press secretary says his staff is reviewing the proposal.
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