This week’s property tax events here in Marion County once again highlight the need for some type of county government reform by consolidating offices as recommended by the Kernan-Shepard report. It’s obvious that there are so many cooks stirring the broth that not only is it spoiled, but it’s often impossible to determine who spoiled it.

On Tuesday, County Treasurer Mike Rodman held a news conference to explain the 2007 catch-up property tax bills, which were just being mailed to homeowners. Rodman and his aides gave a very detailed, informative presentation, which answered most questions. But he knew homeowners would have more, and he wanted them to know up-front that he didn’t have most of the answers.

What if I disagree with my assessment? Call Greg Bowes, the County Assessor. When can I expect my rebate check in the mail? Call Billie Breaux, the County Auditor. Why do I have to wait for the rebate check, when it would have been so much simpler and quicker to apply the rebate as a credit on the catch-up bill? See your House Democratic majority, which refused to even hear a bill to do just that.

All of those issues (except the House Democratic one) would be greatly affected by combining the offices of Treasurer, Auditor, and Assessor, as some reform proposals would do. It might not make the answers to those questions any more palatable to taxpayers. But it would at least put the onus on one official. And it wouldn’t matter if he or she was elected or appointed. The trail would still lead to one door, to one person who could be held accountable if things went wrong. If elected, that person could be tossed out of office. If appointed, his or her boss would be in hot water. But there would be no shifting of blame or questions or issues or anything else.

By the way, notice that all the people to whom Rodman transferred questions or criticisms (Bowes, Breaux, House Speaker Pat Bauer) are all fellow Democrats. It shows just how seriously our elected officials fear any revival of last year’s taxpayer revolt. Party loyalty is taking second place to self-preservation.

Often times, when you read political news, you wind up thinking, “Good Lord, how could that elected official be so dumb as to think he or she could get away with that?” (See also: Larry Craig.)

Once in a blue moon, however, a story comes along that makes you want to reach out and pat those very same elected officials on the back and say, “Nice work. In the face of temptation, you did the right thing.”

Here is one such story.

Northern Indiana lawmakers can ride free on the Indiana Toll Road if they choose - and all legislators can get the same deal if they use the pass offered by the highway’s private operator.

But several lawmakers who have received the electronic transponders aren’t using them, saying it’s only fair that they pay the same amount as other motorists.

“When I got it I was in a state of disbelief,” said Rep. Scott Pelath, D-Michigan City. “I can’t describe it as anything other than a perk. Mine is in the possession of solid waste authorities.”

With the exception of Republican State Rep. Dick Dodge of Pleasant Lake, who will probably reconsider his incredibly stupid decision to use the pass after he fields a few angry constituent phone calls this weekend, it looks like all of the Northern Indiana lawmakers who received this perk turned it down.

Kudos all around.

Except, of course, for the Indiana Toll Road Concession Co., which ought to fire the idiot(s) who thought this would be a great thing for public and political relations.

Walk me through the logic: Everyone in Northern Indiana already was pissed off because the Guv sold “their” road out from under them in exchange for a one-time pot of money, most of which will be spent outside of Northern Indiana. And you thought it would be a good idea to add insult to injury by offering this special perk to local lawmakers?

Did you honestly think any of them would take it? Did you think this wouldn’t somehow fan the flames of rage average folks already feel because you’ve raised their tolls? Did you ask yourself the first question of public relations: “How would this make us look if it was printed on the front page of the newspaper?”

Obviously not.

And so it is with great pleasure that I congratulate those lawmakers who filed this freebie in the recycling bin, and I scoff at the corporate types running our Toll Road who still don’t seem to understand that there’s a difference between public service, where you stand alongside the people you represent, and private industry, where perks like this are de rigueur.

Update 3:23pm:  HB 1001 just passed the Senate by a vote of 41-7.  The amendment passed the House this afternoon as well, meaning the property tax reform plan is headed to Governor Daniels for his signature.  We’ll have reaction on 6News First at 5. 

Update 12:56pm: The House just passed HB 1001 by a vote of 82-17.  The chamber burst into applause when the vote was announced.

Update 11:20am:  The House has begun debating HB 1001, the main property tax reform package.  The vote is likely to happen around noon. 

Update 10:10am:  The Senate has just voted to approve the constitutional amendment.  The vote was 40-7. 

Update 10:00am:  The Indiana Senate is currently preparing to vote on the constitutional amendment to cap property taxes in Indiana.  The Senate just began debating the measure, and is expected to vote within the hour.  The amendment does not contain most of the basic language from the governor’s tax plan.  That is contained in HB 1001, which will be voted on later today.  But supporters say the constitutional amendment is needed to make sure the tax bill is not overturned in court.  Supporters say it will prevent a repitition of what has happened in previous years, when legislators would vote to control property taxes, only to have their work undone by lawmakers in subsequent years. 

8:50am: We’re back at the Statehouse, where today is the deadline for lawmakers to pass legislation in this session of the General Assembly.  We’re watching for action on the property tax plan, which did not get a vote last night.  And, in case you missed us at 11pm, the immigration reform bill is dead.  Keep coming back for updates today, and leave your comments as well.

Update 10:40pm:

State Lawmakers have gone home for the night without taking a vote on the tax reform plan. There is apparently dissension among some Democrats over the deal negotiated by their leaders. It’s still unclear if there will be enough votes on either side of the aisle to pass the package before tomorrow’s deadline.

Update 12:55pm:

Major elements of property tax settlement, as revealed by House Speaker Pat Bauer:

–Tax caps for all three property groups (1% homeowners, 2% rentals, 3% business) Caps based on property’s assessed value, NOT owner’s income.

But with major exceptions for two counties, Lake and St. Joseph, because they have so much local debt. Counties with debt exceeding twenty percent of their budgets would be exempt from caps.

–State takes over school general operating fund and several child welfare levies, which means those would be off property tax burder forever.

–Voter referenda on all local building projects above a certain value. ($10 million for local government, $20 for schools) And it would apply to any school project, not just sports stadiums.

–Democrats get several items for low-income families. (increase in renter’s deduction from $2500 to $3000, increase in earned income credit from 6% to 9%, and property tax freeze for seniors whose home values and incomes do not exceed certain benchmarks.

–Township assessors eliminated in all but the biggest townships. Those with 15,000 or more parcels, which includes all Marion Co. townships, would have voter referenda on whether to get rid of assessors.

Bauer says the compromise would encourage counties to adopt higher Local Option Income Tax to help avert budget shortfalls, but wouldn’t require it. He says the bill would produce average tax cuts for homeowners of about 30% in the first year.

State will also provide some additional money for rainy day assistance to schools which experience revenue shortfalls. But it isn’t clear how much that would be.
11:22am:

State lawmakers have reached a deal on property tax reform in Indiana, just one day before the legislative session is to end.

Here is what I know right now:

• There will be property tax caps: 1% for homes, 2% for businesses, 3% for commercial property.
• Lake and St. Joseph counties will be treated differently than the state’s other 90 counties, at the insistence of democratic leaders.
• Township assessors will be eliminated where there are fewer than 15,000 parcels. Any township with more than 15,000, including all of Marion County, will be subject to a voter referendum on elimination.
• At least part of the tax caps will go in to the state constitution.
• There will be referendums on construction spending projects for schools and local governments.

More to come throughout today, and leave your comments here.

Will there be an agreement on Property Tax reform, or will a special session be necessary?

That’s the question on the great property tax debate with the General Assembly with one week left before the legally-mandated adjournment for the regular session. On Thursday both sides made what appeared to be major concessions. The Republicans, as expected, offered to accept Democratic proposals to increase credits and deductions for seniors, renters, and low-income families. Their increase in the renter’s deduction (from $2,500 to $3,000) wasn’t as much as Democrats wanted ($2,500 to $5,000), but the concept was there.

Democrats, also as expected, backed off their proposal to cap homeowners’ property tax bills based on their household income, not the assessed value of the house. But did either of these move the talks closer to compromise? Not if you listen to the participants. Governor Daniels proclaimed the new Republican version to be essentially the second invention of sliced bread and said that anyone who couldn’t support it really doesn’t want property tax reform. That, as you can imagine, ticked off House Speaker Pat Bauer, who accused the governor and the Republicans of negotiating through the media and sabotaging the talks, which he says had been promising.

Democrats also agreed to vote for a constitutional amendment capping property taxes. Until now they’ve been willing to put it into law, but not the constitution. However, yesterday’s concession came with a caveat. They’re only willing to put the one percent cap for homeowners into the constitution. The two percent cap for rental and farm property and the three percent cap for business property would only be in the law, meaning it could be changed by any future legislature.

Many states have handled their caps that way, protecting only homesteads in the constitution. But it isn’t likely to fly with Indiana Republicans, given their strong association with business. Business groups didn’t like having higher caps before. And the prospect of having no caps while homeowners are capped at one percent could produce a strong shift of the property tax burden to their members.

It’s too early to proclaim an impasse between the two sides. The last days of a session resemble a roller-coaster ride, moving wildly back and forth between extreme optimism and pessimism. Both sides say a property tax solution is essential and that they would be foolish to go to the voters without one. But a small part of me still says that if one side can figure out a foolproof way to blame the other for sabotaging a deal, they might feel it would give them such a huge advantage in the campaign they would be hard-pressed to ignore it.