Thank god someone is finally stepping forward and addressing this property tax issue. Governor Mitch Daniels proposed a permanent cap on Indiana property tax bills that he claims would cut the average Hoosier’s bill by 1/3. Basically what the governor is proposing is to cap property taxes at 1% of the assessed value for residential, 2% for rental properties, and 3% for businesses. Hence, a $200,000 house would not pay more than $2,000 in taxes. He is also proposing another homestead exemption of 35% on top of the current $45,000 exemption.

Obviously, we need to make up for that money somewhere else. The somewhere else that the governor is proposing is at the register with a 1% increase in the state sales tax. One other change that is bound to provoke controversy is subjecting all significant local construction projects to a public referendum. There are more details and I am quite sure you can read about them daily in the Star for the next 5 months, but for now let’s move on.

I don’t know about you, but I would much rather pay an extra 1% at the register than be saddled by these outrageous property taxes that we are currently stuck with. I commend Gov. Daniels for bringing this to the table. In response to his proposal, it seems that the consensus right now is that this plan is not perfect but it is a start and somehow it will become law. I really hope so, I really hope our elected officials partisan pride doesn’t get in the way of passing this extremely urgent and imperative piece of legislation.

I don’t know, maybe I am being ridiculous, maybe I am being selfish because I am in the real estate industry but I would much rather pay these taxes elsewhere than in the form of real estate taxes. Am I being selfish? Would you rather pay at the register? Feel free to comment…

Date: 2007-10-25 15:43:32
Views: 288

Comments

Barry Cox

Have some of your people come take a look at our property tax system here in AZ. Taxes are very inexpensive. Every state gets you somewhere though. If it's not property taxes, it's something else.

JBoyer Convent Station Guy

Cutting the property taxes is great, but the ways to make up the difference are just plain murder to any possible future growth in your state. I guess count your self lucky, we have crazy Real Estate Taxes in New Jersey as well as 7% sales tax and 6% top income tax rate. Worst of all worlds on that one.

Bince

I agree, it is great to cut the tax, but "paying at the register" makes the market prohibitive to many people and will certainly affect our numbers as far as sales is concerned.

Mike Taylor

@Bince - I know paying at the register makes the market more prohibitive, but this a very fine line to walk. Real Estate, as we have seen in recent months, is a very strong factor in the economy and can also be made prohibitive by very high real estate taxes.

@JBoyer - Ouch! Now I see why so many people are leaving NJ and heading for Florida.

@ Barry - Maybe you should advertise in NJ to get some leads. AZ has no income tax either, right?

Ryan Ward

It's intersting how the taxes for real estate are always computed a little differently. I am sort of a consumption tax guy, believing in the Fair tax....You guys are right though, they will find a way to make the money up somewhere and in whatever state you are in.