What really happened with HJR 1?

House Joint Resolution 1was the proposed Constitutional amendment that contained permanent caps on property tax rates in Indiana.  The measure was part of Gov. Daniels’ solid plan for dealing with the current property tax crisis.  Unfortunately, HJR 1 effectively died last night when Speaker Bauer failed to call it down for a vote.

Some are reporting that the move by House Republicans to try and insert the language of SJR 7(the marriage amendment) into the property tax amendment is what killed the measure.  However, a House source has clarified that Rep. Tim Harris’s proposed amendment to HJR 1 was what really made Bauer kill the measure.  Rep. Harris’s “controversial” amendment proposed the complete elimination of all residential property taxes.

Note that Rep. Harris’s proposal was not that we eliminate all property taxes or immediately eliminate residential property taxes.  It merely set in motion the legislative ball on the process to eliminate residential property taxes, something that the House Republican Caucus has seriously considered, and the Governor has shown open-mindedness towards should it be shown that the numbers work with current revenue levels.  Further, the Governor’s plan will still be able to pass the General Assembly this session without the passage of HJR 1.