Monday, January 30, 2006

Property Tax Pipedreams?

I suppose one had to admit that the handwriting was on the wall that something would have to be done this year with property tax reform. I have to say, though, I never thought I'd hear a sitting Indiana legislator talk publicly about abolishing it.

Thursday, the House approved 97-1 the sweeping property tax bill (House Bill 1001), which not only abolishes the tax in 2009 but changes the way Indiana pays for child welfare by gradually shifting the costs from the counties to the state. The bill grants a one-time tax credit to help mitigate any property tax increases in this year's bill. That will cost an estimated $147 million at a time when the state is climbing out of a financial hole.

Property tax is a very sensitive subject in this state. The Democrats ignore the issue (because they see no problem) and the Republicans dance around it and try to pretend it's not there usually. However, given that, as the article in the Indianapolis Star points out, property tax is about to reach the "perfect storm" of higher government spending at the state and local level while reassessment looms this year. Combined, they will mean even more ridiculously high property tax bills for Hoosiers, and the legislatures, rightly so, feel we voters might take it out on them at the ballot box.

Of course, there's little chance these lightweights will have the courage to actually abolish property tax at this time. The move appears to be more political than anything. The measure has to pass the Senate and almost no one believes the Senate will budge on the issue. Still, it's a start, and yet another example of the Republicans taking a wildly popular idea from the Libertarians and at least parroting like they believe it.

Nobody likes to pay property tax and the likelihood of it going up yet again fills most of us, including me, with a great deal of dread. You expect a more fixed bill with a mortgage, but not when insurance companies and local government have anything to say about it. Property tax for local government is often seen as a "guiltless tax" because they always throw out "Well, how do you propose we pay for x or y then, hmmmm???? Explain that? If you can't, then shut up!!!" I wish I were exaggerating.

What I like to remind these feeders at the property tax trough is that that isn't exactly our job. In a representative government, we ask them to do that. We say, property tax bad, you fix. The proper response is not "tell us how" but "right away, absolutely, let's see what other states have tried or come up with some new ideas ourselves and we'll get back to you ASAP". Or, am I imagining that the duty of state and local government is to be responsible to the people? Am I simply dreaming that? Nope, this one looks like another nightmare, courtesy of the very people we put in to do this to us. Somewhat masochistic of us, wouldn't you say?

3 Comments:

Blogger Mike Kole said...

Sadly, it is a pipe dream. While one lawmaker proposes the elimination of property taxes, this morning on WXNT, State Senator Luke Kenley (R-Noblesville) cracked the joke that he thought that as long as we're at it, he would throw in an amendment to eliminate death, too. That about sums up the possibility of it happening.

The problem is the addiction to spending tax dollars. Until the attitudes about spending change, particularly among Republicans, the money will have to come from somewhere- property taxes will unfortunately continue to be included among the sources.

7:48 AM  
Blogger Rob Beck said...

Perhaps someone should've called in to remind the good senator that he can be eliminated as a candidate for Senate just as easily, and be sent out to pasture in exchange for someone without quite such a pedestrian sense of humor.

11:40 PM  
Blogger Mike Kole said...

Alas, he is counting on the fact that his term runs trhough 2010, and that memories run shorter than that.

Sadly, more Hoosiers will better remember tonight's Super Bowl in 2010 than Kenley's follies of 2005 & 2006.

1:20 PM  

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