Tax News

CCH (cch.taxgroup.com) reports:

On August 5, 2008, Indiana Governor Mitch Daniels called for final legislative passage of a constitutional amendment to make permanent the property tax caps contained in HEA 1001 and proposed giving taxpayers a refund for personal income tax purposes in the years when state revenues exceed those necessary for a balanced budget and rainy day reserves.
A constitutional amendment to make permanent the property tax caps, which limit property taxes to 1% of the value of a home, 2% of agricultural land or rental property, and 3% of any other business beginning in 2010, must be approved by two separate sessions of the General Assembly before it can go to a popular vote. Under Senate Joint Resolution 1 as passed by state lawmakers, effective January 1, 2012, the caps would be placed in the Indiana Constitution. The proposed constitutional amendment would go before the voters in the November 2010 general election only if lawmakers approve the measure again in the next General Assembly.
Governor Daniels also proposed the Automatic Taxpayer Refund, which would ensure that any tax revenues beyond those needed to maintain a balanced budget and adequate rainy day reserves be sent back to taxpayers in the form of a refund. In years when state revenues are above an agreed level needed for fiscal sufficiency, the surplus amount would be returned to taxpayers on a per capita basis in the form of a credit on their next income tax filing.
The governor's plan would require the approval of the General Assembly.
The full text of the new release can be found at the governor's Web site at http://www.in.gov/portal/news_events/24854.htm.
News Release , Office of Indiana Governor Mitch Daniels, August 5, 2008.