GARY | Indiana voters will decide in November whether the tax reform started in 2008 that limits or caps the amount property taxes paid -- by everyone from homeowners to businesses -- becomes part of the state's constitution.

There are positive and negative consequences of amending the state's constitution to codify that property tax credit system, said Larry DeBoer, a professor and extension specialist in agricultural economics at Purdue University, during Friday's quarterly meeting of the Quality of Life Council at Indiana University Northwest.

DeBoer said the tax cap constitutional referendum will ask voters to decide if the state's constitution should list the limits now placed on annual property tax bills to a specific percentage of the property's gross assessed value. It will also ask if the Indiana General Assembly should be allowed to put mobile homes in the same category for tax deductions or credits as a permanent housing structure.

However, DeBoer said, questions voters aren't being asked include, "Do you want your services cut? Do you want local governments to struggle to pay for services? Do you want government to seek other sources of funding than property taxes?"

Property taxes support many entities including county, township and municipal governments; school districts and library districts. Each one of those taxing units share taxpayers and divide up the property taxes paid.

Up until now, the funds that the taxing units lost to the tax credits were replaced by the state government out of its budget.

"Now all governmental units become interdependent that share taxpayers," DeBoer said. "What each unit does impacts the others. There's never been a reason before for local governments to talk together. Now there is."

A panel of municipal leaders gave their perspectives on the tax cap system's effects.

Highland Clerk Treasurer Michael Griffin said that the tax reform is forcing unchecked government policies to be eliminated and will reduce patronage.

However, he said, "It does not reduce the cost of government. It limits the resources available."

Whiting Mayor Joe Stahura said Whiting has actually gained from the reform because it "makes operations more efficient (and) stimulates economic development (in industry)."

But, services such as parks and recreation facilities may need to be cut, he said.

For Valparaiso, the effects have not been as great because the city has focused on improving its infrastructure, which in turn, has brought in more business," said Mayor Jon Costas.

"We took areas that were almost blighted and have them a completely new look by working with private industry," he said.