By VICKI URBANIK

Saying that property taxes need to be brought under control, the Porter County Commissioners on Tuesday endorsed the gist of Gov. Mitch Daniels’ property tax reform plan calling for a hike in the state’s sales tax in order to fund a deep cut in property taxes.

Commissioner President Robert Harper, who has been outspoken against property tax increases, authored a resolution in support of the governor’s plan. The resolution won the backing of fellow commissioners John Evans, a Republican, and Carole Knoblock, a Democrat.

When a reporter pointed out that Harper is a Democrat endorsing a Republican governor’s tax plan, Harper said the issue was about protecting homeowners from getting taxed out of their homes. “It’s not a Republican or Democrat issue,” Harper said, adding that House Speaker Pat Bauer, also a Democrat, has pledged to give the governor’s plan fast-track consideration.

The resolution points out some of the key points in the governor’s plan, focusing on the tax impact on homeowners: A cap on property taxes of up to 1 percent of a home’s value, taxpayer referendum approval if local spending exceeds a county’s average personal income growth over a six-year time period, state takeover of funding for school operating costs and services for abused and neglected children, referendums on major new construction projects, and provisions for streamlining local government.

The resolution also cites lobbying groups expected to fight the plan. “We feel it is important for all citizens to contact their legislative representatives and indicate a support of this plan,” the resolution states.

The resolution doesn’t directly mention a few other aspects of the governor’s plan, such as a constitutional amendment setting in stone the property tax caps or the proposed increase in the state’s sales tax from 6 percent to 7 percent to fund the property tax cuts.

Daniels has projected that his plan would cut homeowner taxes by about a third; an alternate plan from a legislative committee is similar, but is projected to cut homeowner taxes in half.

Evans said he cannot endorse the part of the governor’s plan calling for a tax cap of 3 percent on business property, saying that’s an inequitable distribution of the property tax burden compared with the 1 percent cap on homes. But Evans also said he wholeheartedly endorses the resolution because something has to be done “or else people are going to be losing their homes.”

“This is a great starting point,” he said.

Knoblock, too, said the issue of property tax reform shouldn’t be a political one, as she called on the Indiana Legislature and the governor to end “this injustice” of rising property taxes.

Harper earlier this year blasted the Indiana Legislature for its weakening of a previous law, which attempted to set a 2 percent cap on residential property taxes. Harper said lawmakers will be pressured again by lobbyists this session to weaken any effort to cap taxes. Even though it’s important for the commissioners to take a stand, Harper said it’s even more important for the average citizen to contact their lawmakers and “insist this relief be given to us.”

Harper, noting how Americans have been encouraged to save up for a home, said he believes the American dream of homeownership may be eroding by property taxes that increase every year.

In a separate but somewhat related matter Tuesday, the commissioners approved a renewal of the office lease for Pine Township Trustee/Assessor Nancy Kolasa. But the approval wasn’t as routine as it normally is: Kolasa made sure that the contract contained a no-penalty clause in the event the county has to break the lease prematurely “due to the governor’s plan to get rid of assessors.”

Daniels’ tax reform plan would eliminate township assessors, replacing them with a single county assessor appointed by the county councils. An alternative plan, promoted by a state assessors association, calls for consolidating the township assessors in regional districts. Duneland’s township assessors oppose both proposals.

The resolution adopted by the commissioners Tuesday doesn’t directly mention the fate of township assessors. But Harper said he agrees that something should be done to streamline assessing, and that this is referred to in the resolution’s support of “streamlining local government by combining certain governmental units.”

In another related matter, Evans noted that Porter County’s 2007 property tax bills are expected to go out in the coming weeks, with a due date around the holidays. He called on state legislators to allow county treasurers the flexibility needed to give or extend the grace period for people to pay their property taxes. While people who pay their taxes through escrow accounts won’t be as affected, he said others who don’t have their taxes in escrow may have a difficult time paying their tax bill at the same time that they’re shopping for Christmas presents.

Posted 11/21/2007