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Proposal includes 1-cent increase in state sales tax

Commissioners endorse Daniels' tax plan

Commissioners endorse Daniels' tax plan
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VALPARAISO | Porter County commissioners said homeownership in Indiana must be protected -- and Gov. Mitch Daniels' new property tax plan is a good start.

On Tuesday, the commissioners unanimously voted to support Daniels' recent proposal, which seeks to cut property tax bills by 33 percent by 2009. Under Daniels' plan, homeowners would never have to pay more than 1 percent of the assessed value of their homes in property taxes.

The plan also calls for a 1-cent increase in state sales tax to 7 percent, tighter constraints on local spending and streamlined local government.

"Property taxes in this state must be controlled, or people will be losing their homes," Commissioner John Evans said. "This is a great starting point, and it has to have bipartisan support."

In addition to citing their own support, commissioners called on residents and legislative representatives to back the plan.

"The American dream of owning a home and retiring safely is being threatened," Commissioner Bob Harper said. "When it comes down to it, this plan is only going to succeed if everyone gets hold of their legislatures and insists that this relief is given."

Harper said lobbyists in Indianapolis will fight the proposal and attempt to fill the plan with loopholes. Legislators must avoid these attempts, he said.

Despite the commissioners' large-scale approval of the plan, Evans expressed disagreement with implementing different property tax caps for homes and businesses.

"Under the plan, residents are capped at 1 percent and businesses at 3 percent," Evans said. "I just can't endorse this part. I don't think there should be a difference."

The commissioners said they will be mailing letters to state representatives shortly, urging support of the proposal.

Copyright 2012 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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