Signed by Governor Mitch Daniels, Jr.

Vote Smart's Synopsis:

Vote to adopt a conference report that reduces property taxes.

Highlights:

- Increases the sales tax from six to seven percent (Sec. 310). - Increases the limit on state income tax deductions for renters from $2,500 to $3,000 (Sec. 318). - Creates a supplemental property tax deduction for homesteads taken after the standard deduction and before any other deduction equal to 35 percent of the assessed value of property that is not more than $600,000, and 25 percent of the assessed value of property over $600,000 (Sec. 116). - Transfers the powers of the township assessor to the county assessor in towns with less than 15,000 parcels of real property beginning July 1, 2008. In towns with 15,000 or more parcels of real property, the township may vote on whether or not to transfer these powers (Sec. 710). - Sets the maximum standard property tax deduction at 60 percent of the assessed property value or $45,000, whichever is less (Sec. 115). - Requires there be a referendum on whether to levy property taxes to pay for the following projects (Secs. 193-194):

- School buildings intended for students in kindergarten through the 8th grade and costs more than $10 million; - School buildings intended for students in grades 9-12 that costs more than $20 million; and - Any controlled project that will cost the lesser of: (1) over $12 million or (2) one percent or more of the assessed property value of the entire political subdivision.

- Sets the property tax credit for 2009 as the amount by which a person's property tax exceeds the following percentages (Sec. 222):

- 1.5 percent of a homestead's assessed value; - 2.5 percent of a residential, long-term care, or agricultural property's assessed value; and - 3.5 percent of a nonresidential or personal property's assessed value.

- Increases the state tax credit from six percent to nine percent of the federal earned income tax credit amount (Sec. 325). - Allows schools that expect to lose more than 2 percent of their property tax revenues due to the application of tax credits to apply for a government grant (Sec. 456). - Provides $620 million in additional homestead credits for 2008, $140 million for 2009, and $80 million for 2010 (Secs. 848, 849 & 850). - Transfers $50 million from the general fund to the state tuition reserve fund (Sec. 855).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report that reduces property taxes.

Highlights:

- Increases the sales tax from six to seven percent (Sec. 310). - Increases the limit on state income tax deductions for renters from $2,500 to $3,000 (Sec. 318). - Creates a supplemental property tax deduction for homesteads taken after the standard deduction and before any other deduction equal to 35 percent of the assessed value of property that is not more than $600,000, and 25 percent of the assessed value of property over $600,000 (Sec. 116). - Transfers the powers of the township assessor to the county assessor in towns with less than 15,000 parcels of real property beginning July 1, 2008. In towns with 15,000 or more parcels of real property, the township may vote on whether or not to transfer these powers (Sec. 710). - Sets the maximum standard property tax deduction at 60 percent of the assessed property value or $45,000, whichever is less (Sec. 115). - Requires there be a referendum on whether to levy property taxes to pay for the following projects (Secs. 193-194):

- School buildings intended for students in kindergarten through the 8th grade and costs more than $10 million; - School buildings intended for students in grades 9-12 that costs more than $20 million; and - Any controlled project that will cost the lesser of: (1) over $12 million or (2) one percent or more of the assessed property value of the entire political subdivision.

- Sets the property tax credit for 2009 as the amount by which a person's property tax exceeds the following percentages (Sec. 222):

- 1.5 percent of a homestead's assessed value; - 2.5 percent of a residential, long-term care, or agricultural property's assessed value; and - 3.5 percent of a nonresidential or personal property's assessed value.

- Increases the state tax credit from six percent to nine percent of the federal earned income tax credit amount (Sec. 325). - Allows schools that expect to lose more than 2 percent of their property tax revenues due to the application of tax credits to apply for a government grant (Sec. 456). - Provides $620 million in additional homestead credits for 2008, $140 million for 2009, and $80 million for 2010 (Secs. 848, 849 & 850). - Transfers $50 million from the general fund to the state tuition reserve fund (Sec. 855).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill to reduce property taxes.

Highlights:

- Increases state retail tax from 6% to 7% (Sec. 303). - Allows individual townships to vote on whether they want to transfer the powers of their township assessor to the county assessor (Sec. 703). - Increases the state income tax deduction for renters from $2,500 to $3,000 (Sec. 307). - Allows voters to pass referendums for all controlled projects, which are projects that lead to increased investment in Indiana; foster job creation or job retention in Indiana; have a positive impact on the political subdivision in which the project or facility is located or will be located; or otherwise benefit the people of Indiana by increasing opportunities for employment in strengthening the economy. (Sec. 191) (Sec. 186) (Sec. 193). - Provides a supplemental property tax deduction for those eligible for a standard property tax deduction. The supplemental deduction is applicable after the standard deduction has been applied, but before the application of another deduction (Sec. 117). - Sets supplemental property tax deductions as the sum of the following rates (Sec. 117): - 35% of the assessed value that is not more than $600,000. - 25% of the assessed value that is more than $600,000.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill to reduce property taxes.

Highlights:

- Increases the earned income tax credit from 6% to 9% (Sec. 302). - Freezes property taxes on homes valued below $200,000 for individuals 65 and older and who earn less than $35,000 per year, or less than $50,000 per year if taxes are filed jointly with a spouse (Sec. 131). - Doubles the state income tax deduction for renters from $2,500 to $5,000 (Sec. 184). - Creates the school contingency and reserve account which will have $150 million for state tuition support (Sec. 8). - Subjects large school construction projects unrelated to classroom learning such as sports stadiums or pools to a referendum, unless the project is necessary to remove a threat to the health, safety, or welfare of students (Sec. 181). - Increases state retail tax from 6% to 7% (Sec. 290). - Adds to those who are eligible for a standard property tax deduction, a supplemental property tax deduction that is applicable after the standard deduction has been applied but before the application of any other deduction, exemption, or credit (Sec. 96). - Sets supplemental property tax deductions at the following rates (Sec. 96): - 35% on homes valued $200,000 or less - 30% on homes valued over $200,000 but not exceeding $300,000 - 25% on homes valued over $300,000 but not exceeding $400,000 - 20% on homes valued over $400,000 but not exceeding $500,000 - 15% on homes valued over $500,000 but not exceeding $600,000 - 10% on homes valued over $600,000 but not exceeding $700,000 - 5% on homes valued over $700,000 but not exceeding $800,000 - 0% on homes valued over $800,000

Full Bill Text