[Southsider2k12]

http://heraldargus.com/articles/2010/01/14...aa402791017.txt

Property tax caps OK’d by Indiana Senate

By Craig Davison
Published: Thursday, January 14, 2010 12:49 AM CST
Staff writer

1-866-362-2167 Ext. 13865

cdavison@heraldargus.com

LA PORTE — A day after the Indiana House passed a proposed amendment to the state constitution, the Senate followed.

It sets up a November vote for Hoosiers on whether to add property tax caps to the highest document in Indiana.

Senators voted mostly along party lines in approving the caps in a vote of 35-15.

Local state Sen. Jim Arnold was in the dissenting minority.

He said that at some point, cuts may have to be made. A constitutional amendment would limit options for future legislatures. Cuts could have to be made in services or personnel.

“Be careful what you wish for, because it might come true,” Arnold said.

State law limits property tax bills to 1 percent of homes’ assessed value, with 2 percent caps on rental property and 3 percent caps on business property.

Arnold said he doesn’t believe a constitutional amendment is the way to handle the issue, but is glad the people will ultimately decide.

“People are going to have a chance to cast a vote and make their voice heard,” he said.

Rep. Tom Dermody, R-La Porte, voted for the House version of the bill and Rep. Scott Pelath, D-Michigan City, voted against it.

Michigan City Mayor Chuck Oberlie also expressed concerns that a constitutional amendment offered no flexibility. If a problem arises, there won’t be a quick solution, he said.

“The process of amending the constitution takes time,” Oberlie said.