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Sunday, October 17, 2004

Indiana Law - Gary paper opines again on proposed constitutional amendment

The Gary Post-Tribune, which wrote on Oct. 11 about all three proposed constitutional amendment, opines again today, here, on one of them, which it states is "of particular importance to Northwest Indiana". Some quotes:

The question asks whether the state constitution should be amended “to allow the General Assembly to make certain property exempt from property taxes, including (1) a homeowner’s primary residence, (2) personal property used to produce income, and (3) inventory?”

We urge voters to support the amendment.

The primary reason is that the amendment gives the General Assembly flexibility in dealing with taxes, particularly property taxes. The constitution currently requires — in terms of property taxes — that homes, businesses and inventory be taxed at the same rate.

Without the amendment, the state would be vulnerable to legal challenges when existing legislation to eliminate the inventory tax in 2006, payable 2007, takes affect, said Rep. John Frenz, D-Vincennes, the sponsor of the amendment.

The elimination of the inventory tax is paramount to Northwest Indiana’s drive for economic development. Although this corner of the state has an elaborate transportation network — with the Gary/Chicago International Airport as the hub — it cannot attract the necessary warehousing because of the inventory tax.

Also important to this area is the impact the amendment could have on any future circuit breakers the General Assembly might impose on property taxes. The amendment would allow circuit breakers to be phased in.

The amendment gives the Legislature considerable freedom in massaging property-tax code. Given what we’ve just been through with reassessment, legislators need that flexibility.

Presumably, the amendment, if approved by the voters in the Nov. 2 general election, would take effect immediately, allowing an opportunity for major tax overhaul in the upcoming (2005) legislative session. Oddly, I have been unable to locate any of the constitutional amendments on the General Assembly website.

Posted by Marcia Oddi on October 17, 2004 11:01 AM
Posted to Indiana Law