State senate votes in favor of property tax caps
>>Print ViewPublication Date: 01/14/2010
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The State Senate passed a constitutional amendment 35-15 to cap property taxes, clearing the way for voters to approve on Nov. 2.
The amendment must pass a second time in the House as well as a second reading in the Senate before going to the people. If voters support it, the tax would be 1 percent for owner-occupied homes, 2 percent for agricultural and other residential properties, and 3 percent for business in the so-called 1-2-3 cap.
Voicing the concerns of about 90 percent of his constituents, State Sen. Ron Alting, R-Lafayette, voted in favor of the amendment.
“I think that there are a lot of senior citizens that struggle with the high property taxes,” Alting said.
Additionally, Alting said there could not be a better time to help homeowners gauge how much they need to put aside for the tax.
Caution was also issued by Alting to voters to look at the big picture before voting.
“We owe it to the public to show how the two and three percent has affected farmers, business and our schools, so all the facts are out there to make an informed vote,” Alting said.
Particularly, the effect on education and local governments was of concern.
Alting said, “They have limited to zero areas they can increase revenue ... they can’t raise the fee in a public school. There is none!”
State Rep. Sheila Klinker, D-Lafayette, echoed Alting’s concerns.
“I think we need to watch it carefully, and I say that on behalf of the local governments and schools,” Klinker said.
As an example of a cap backfiring, Klinker described the funding troubles in California.
According to Mayor John Dennis, West Lafayette will not have significant funding problems due to the cap.
“About 59 percent of funding for city services comes from non-property taxes,” Dennis said.
“As always, we’re going to keep West Lafayette public services great.”