Property Tax Bill Clears State Senate Committee

The state would stop using property taxes to pay public school operating expenses, under a bill that has cleared an Indiana Senate committee. Right now, property taxes cover about 15 percent of public school expenses. Some school officials say that’s a good thing, because during weak economic times, property tax revenue is more reliable than revenue from sales and income taxes. Meanwhile, Indiana House Republicans have announced their property tax reform plan. They call it, “cut now, cap forever.” It calls for an immediate cut in property taxes by this May and a permanent cap on residential property taxes.