INDIANAPOLIS | House Speaker Pat Bauer, D-South Bend, said this week the 2 percent circuit breaker seems to unduly benefit wealthy homeowners as well as business interests.
Bauer made his statement in reaction to a recent Times analysis indicating a large proportion of circuit breaker tax relief goes to middle class and wealthy homeowners. The circuit breaker was designed to prevent the needy from losing their homes to high taxes.
Bauer said some property tax cap will remain in place, but "I don't know if it's going to be 2 percent. I didn't support 2 percent."
Bauer and Senate President Pro Tem David Long, R-Fort Wayne, said they were confident some property tax solution could be worked out before the General Assembly adjourns April 29.
Property taxes were the talk of the town Wednesday, with mayors, county officials and legislative leaders competing for public attention.
The day started with a panel discussion allowing county officials from across the state to grill former Indiana House Speakers John Gregg, a Democrat, and Republican Paul Mannweiler.
Lake County Commissioner Roosevelt Allen Jr. said property tax relief wouldn't be such a pressing issue if lawmakers would undo the caps they imposed on local riverboat casino revenues.
"My problem is they won't acknowledge what they've taken," Allen said. "They give us two riverboats (in Gary) and then they cap the revenue for the city. Then they add insult to injury by introducing House Bill 1858."
Allen said that resulted in a massive transfer of tax burden from big industry to homeowners and small businesses.
Long promised the "Senate is going to pass (a property tax plan)" and keep negotiation alive until the end of the session.
State Rep. Bob Kuzman, D-Crown Point, said he sees some promise in the current Senate plan, which would raise the circuit breaker to 3 percent for businesses, shift some local costs to the state and move new spending toward local income taxes.
Meanwhile, House Republicans presented their own multilayered tax solution Wednesday. It would spend $140 million to give homeowners an additional 8 percent homestead credit, which would halve tax bills expected to grow by 15 percent this year.
Kuzman said he dangled a similar homestead credit in negotiations last month. His tax plan received no support from House Republicans and failed by two votes last month.
