Yes, We Have an Agreement!
Barring any crazy antics by Speaker Bauer (which can never be ruled out), we have a deal…a compromise if you will, on the property tax crisis. And it does include a constitutional amendment. Time to celebrate this compromise.
I love that band!
March 13th, 2008 at 2:21 pm
Great, My property taxes are going to go down by about $513,Sales tax is going up 17% and the best thing, I am going to pay an extra $750 in income tax. How did i win again?
March 13th, 2008 at 2:24 pm
Is this the same guy who doesn’t understand math who posted a few weeks ago anonymously?
What part do you not get that total repeal would have raised your sales and income tax to the ungodly numbers you mention. Or are you just a liberal flack bitter the Republicans actually came up with a real plan to address the problem?
March 13th, 2008 at 2:25 pm
My property tax cut taxes my property tax bill to where it was 2 years ago with the promise of it rising with my accessed value. Anonymous, don’t forget about the ability to have local taxing units apply to have the 1% cap set aside.
March 13th, 2008 at 2:30 pm
Josh,
Tell me how my math is wrong! My property taxes will go down 27% or $513. The city and count will have the option to implement a 1% local option income tax, (which they will) that will equal about $750 for my household. Plus my sale tax is going up 17%. I am will to listen, just tell me where my numbers are wrong!
March 13th, 2008 at 2:49 pm
It sounds like you need to get your local government to cut their spending, doesn’t it? If they have the OPTION to implement an increase in income tax, it is not MANDATORY that they do so. Time to get to work.
It seems to me that you would have to spend $51,301 on taxable expenditures to really pay more in taxes.
March 13th, 2008 at 7:10 pm
Joel,
While state government would love to put the blame on local government, and they do deserve part of the blame, the fact remains the caps will leave local goverments with a short fall of funds. The General Assembly put the caps into law and made the rules for the local government. So while you and the General Assembly would love to push the blame to local government, the fact remains the General Assembly passed the loit and local governments will implement it. And looking at Anonymous’s calculations, he will get a tax increase contributed directly to the General Assembly.
March 13th, 2008 at 9:32 pm
Let’s get this straight here. Property taxes pay for local government. Period. The state has been keeping these rates artificially low for the better part of 30 years by a patchwork of subsidizing property taxes.
The current crisis was caused by the state reducing the amount of subsidizing and localities suddenly seeing what the localities are spending.
Local governments will have plenty of funds. Schools will have plenty of funds. It just happens that this will be less than what they are currently throwing into deep dark holes.
The lesson to be learned with this is very simple: our governments (local, state and federal) need to get their hands around the profligate spending.
Once again. It is time to get to work.
March 13th, 2008 at 9:41 pm
Another point. There was a huge push for reduction or elimination of property taxes. Indianapolis largely voted out a mayor due to this issue.
Any time you change from one tax method to another, some people will pay more. Some will pay less. I believe that the goal was to help the poorer homeowners who could not afford their property taxes. I am guessing that we are arguing that a household making more than $75,000 per year is deemed more able to pay those taxes than the elderly retired folk in an otherwise paid-for house.
It seems like this bill is making that happen.
March 14th, 2008 at 7:35 am
Joel,
You have a good point on the elderly, and this bill will help them out. Unfortunately, for most people, especially the middle class, will experience a tax increase from this bill. I consider myself in the middle class, and i will see a net increase in my taxes by $237, not including any raise i get this year and not including the increased sales taxes i will be paying. A direct result in this bill. There is a lot of frustration with this bill and most people realize this. I would guess most of the members of the General Assembly who either have primary opponents or general election opponents will be in trouble. This bill will not save them like they were hoping.
March 14th, 2008 at 8:36 am
With the outcry for Property Tax relief, what does anyone think will happen?
THIS IS CRAZY.
Property tax relief only means moving taxes from one category to another (i.e. from property taxes to sales and income taxes). EVERYONE KNEW THIS FROM DAY ONE.
Controlling spending is, for better or worse, a separate issue.
March 14th, 2008 at 9:44 am
You are correct, this is property tax relief, but not tax relief. I have no problem if they were raising sales and imcome taxes if it eliminated my property taxes. The General Assmbly and the Gov. are hoping people see the property tax relief before the election and hope most don’t realize the tax increase until after the election. While i believe the governor is safe, some key members of the Genreal Assembly may not be as lucky.
March 14th, 2008 at 10:04 am
My understanding is that the sales tax increase will take place “immediately” (I have no idea what that means, but certainly before the election).
March 14th, 2008 at 10:07 am
I believe “immediately” means April 1. I could be wrong, but I remember hearing that date thrown around in regards to the property tax legislation. I should have a more solid date for you later in the day.
March 14th, 2008 at 10:14 am
Joel,
You are correct, April 1 i believe, but it will be the loit increases that will take some time, certainly after the primaries and most likely not before the general in November. That is what the members in the General Assembly that face primary challenges and incumbents in the general are banking on. “Let’s hope people don’t realize the full effect on everyone until after we get re-elected.” Afterall isn’t that what it is all about for incumbants?
March 14th, 2008 at 10:49 am
Forgive me if I am overly bashing local governments. BUT, any LOIT will wait until Localities (i.e. the L in LOIT) Opt (i.e. the O in LOIT) to increase it.
If you fear that they will opt to increase it, now is the time to be talking with your local controlling boards to let them know that it will be unacceptable. Now is the time to be organizing to PREVENT these increases rather than waiting for increases to get mad about.
Your local governments should easily be able to handle the caps given that school operating budgets, pre-1977 pensions, and welfare will be funded by the state rather than through property taxes.