STATEHOUSE REPORT FROM REP. PHIL GIAQUINTA
The first phase of the 2008 session of the Indiana General Assembly has come to a close, and it is time to review what has been an active January at the Statehouse.
Wednesday (January 30) was the last day that House members could consider legislation authored by the members of that chamber. Of the 402 bills and 11 House Joint Resolutions filed this session, representatives ended up approving 114 bills and sending them along to the Indiana Senate.
Of course, the most attention this session has focused on the tax relief package contained in House Bill 1001. This is the top priority for lawmakers and Gov. Mitch Daniels in 2008, and the fact that the House plan passed 93-1 shows that members on both sides of the aisle want to get something done.
Here are the basics of House Bill 1001:
It contains a 1-percent increase in the state sales tax to 7 percent, which could generate nearly $1 billion in property tax relief. It enables counties to impose up to a 1-percent local option income tax to pay for additional property tax relief, which could generate another $1 billion in relief if completely enacted statewide.
It would cap property tax bills at 1 percent of assessed value for homeowners, 2 percent for farmland and rental properties and 3 percent for businesses. It would provide a graduated system for homestead deductions, ensuring that the most relief goes to working families and the middle class rather than the owners of the most expensive homes. Property taxes for seniors on fixed incomes will be frozen.
The state will assume responsibility for child welfare services, as well as the remaining 15 percent of the school operating fund and transportation costs, taking those amounts off the local property tax. At the same time, we are setting aside $200 million as a rainy day reserve for schools to help with tuition support and transportation.
The bill also expands tax relief by increasing the earned income tax credit for working families and doubling the income tax deduction for renters.
Any program as large as that contained in House Bill 1001 includes some provisions that I support, as well as several that cause great concern for me.
I want to see property taxes reduced. I also want to make sure we move carefully before enacting any general tax increase.
Since the governor’s plan to cut property taxes includes a shift to sales taxes and a potential increase in local option income taxes, we must protect those people who will be adversely affected by such a shift. In that light, I like that the plan helps others who are in need of relief, particularly seniors, farmers, working families and renters.
A substantial number of families pay property taxes at a rate beneath the 1-percent cap, which means their property taxes still can increase. Those families also could face additional sales and income taxes.
At this stage of the session, it is important to keep the concept of lasting, broad-based tax relief alive. House Bill 1001 will undergo many changes in the weeks ahead. I remain confident that something can be done.
While tax relief has been at the top of the House agenda this session, there are other measures that have passed out of our chamber and on to the Senate. They haven’t generated the same amount of attention, but they can affect many lives across Indiana.
Time zones: House Bill 1047 will allow residents in Indiana counties bordering the dividing line between Eastern and Central Time to have a voice in which time zone they prefer. If voters in a county approve a time zone switch in a referendum and the governor gives his blessings, that county’s executives will petition the U.S. Department of Transportation to pursue the change. In order to get the referendum on the ballot, 2 percent of registered voters in a county must sign a petition requesting the vote.
Pull tabs and tip boards: House Bill 1153 would authorize pull tabs, raffles, punch boards and tip boards in bars and other establishments licensed to sell alcohol for consumption. Revenue generated from these games would be turned back to counties for local property tax relief. The proposal extends the same rights to bars and taverns that were given to private clubs and non-profit and fraternal organizations in legislation approved by the General Assembly in 2007.
Age discrimination: House Bill 1034 will make age discrimination a civil rights violation. At present, officials can investigate and take action on claims of discrimination based on sex, race and religion.
Alcohol and tobacco: House Bill 1118 marks the latest attempt by lawmakers to regulate the sale of both alcohol and tobacco in Indiana. The measure helps clearly define the powers of grocery stores and other retailers to sell alcoholic beverages. It also gives state officials increased powers to curb the availability of tobacco products and alcohol to minors.
Spinal cord and brain injuries: House Bill 1318 would fund research to assist Hoosiers who have suffered spinal cord or traumatic brain injuries. This research would be funded through a 50-cent fee added to all motor vehicle registrations in Indiana.
Protecting children: Two measures are designed to increase Internet safety for Indiana’s children. House Bill 1134 makes it a Class D felony for a sex offender to solicit a child through a social networking web site or chat room, such as MySpace or Facebook. House Bill 1329 requires monitoring of Internet use by convicted sex offenders, increases penalties for Internet-related offenses and requires school corporations to develop Internet safety programs.
Our attention now turns to the bills sent to us from the Indiana Senate. I’ll have a preview of some of those bills, as well as a look at what will be taking place through the rest of this month.
If you need to reach me while the Legislature is in session, you can call me using the toll-free Statehouse telephone number of 1-800-382-9842, e-mail me at H80@in.gov or write to me in care of the Indiana House of Representatives, 200 W. Washington St., Indianapolis, IN 46204.
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