Daniels outlines plan for tax relief

INDIANAPOLIS – Gov. Mitch Daniels wants to create an opportunity out of a state crisis – and he wants it done in six weeks.\nThe governor challenged the state legislature to pass sweeping and long-lasting property tax reforms by Feb. 26 during his annual State of the State address Tuesday night.\n“Indiana’s property tax dilemma presents us with a \nglistening opportunity not merely to alleviate a problem,” Daniels said, “but to create yet another positive advantage for our state.”\nDaniels outlined of the relief package that he has floated over the past months and hoped to sell to the public and legislature on Tuesday. That plan includes making the state’s property taxes among the lowest in America, raising the sales tax by 1 percent and amending the state construction to make a 1 percent tax cap on a property values.\nLaying out the potential largest tax cut in the state’s history, he said the plan only could be accomplished if spending is cut as well. One of the ways he planned to accomplish this is to require public referendums on major capital projects.\n“I do not share the fear of some that Hoosiers cannot be trusted to weigh the pros and cons of big investments for which they will pay the costs,” he said. “I say, trust the people; give them the facts, and let them vote.”\nDaniels said passing the historic legislature would not be easy and must be met with bipartisan support, two points also made by Indiana House Speaker Pat Bauer, D-South Bend, after the speech. Bauer said some parts of the state might see cutbacks as a result of the plan, and those concerns should be listened to.\n“The governor is going to need to sell a plan,” Bauer said. “This is his fourth year (as governor) that he has seen this crisis, but it is not too long to come to the table.”\nThe challenge to pass the legislature could also be seen in protestors in and around the Indiana State Capitol Building, many of whom held signs calling for an all-out elimination of property taxes. This concern is one in which Bauer said is simply impossible.\nDaniels also used a portion of his speech to highlight achievements of the state, including low unemployment and recently passed telecommunication legislation.\nBut in the end, the speech came back to the topic on everyone’s mind – property taxes. Showing his commitment to getting a deal done within months, Daniels alluded to calling a special session if a bill is not passed by spring, saying legislators shouldn’t “make spring break reservations without a refundable ticket, because we’re all staying as long as it takes.”