House advances property tax cap bill

INDIANAPOLIS (WISH) - The path was cleared in the Indiana General Assembly Thursday for a November referendum on permanent property tax caps in a pair of test votes.

The votes came on Democratic amendments to the tax cap proposal, amendments that Republicans viewed as poison pills.

They were easily turned away. Minority Leader Brian Bosma rejoiced, saying, "This was the hurdle. Today was the test."

The Indiana House votes were 31-to-68 and then 15-to-82 against a pair of efforts to change the tax caps.

"I'm disappointed," said Rep. Jeff Espich (R-Uniondale) in a speech against the first amendment. "But any action to amend can only be construed as trying to kill the effort at this point in time."

Rep. Jerry Torr (R-Carmel) said, "Why take the chance of letting someone derail this before November?"

The Democrats who oppose constitutional caps must now hope that voters will reject them in the fall.

Rep. Trent Van Haaften (D-Mount Vernon) told fellow lawmakers, "I think the caps are a trap for Indiana taxpayers. Those that look at the big picture in terms of payment of Indiana taxes, these caps are going to trap them into higher taxes."

Rep. Earl Harris (D-East Chicago) said, "I don't think we should be putting constitutional restraints like this on future legislators."

A final House vote could come as soon as Monday and the House Speaker said he will schedule it then. The proposal to have a tax cap referendum could be law before the end of January. The caps would limit property taxes to 1% of a home's value, 2% for a farm, and 3% on a business.

Monday's House vote will be followed by votes in the State Senate but the caps passed there easily last year before Democrats blocked a House vote.