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Watchdog Indiana provides information about the revenues, spending, and long-term debt assumption of Indiana local and state governments. An online community is established where Hoosier working families come together voluntarily to help control government growth.

Watchdog Indiana is a non-profit, non-connected, and non-party advocate for good government that focuses on the state and local tax burden of Hoosier working families.
Watchdog Indiana was founded by Aaron Smith on November 14, 2001.

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Good Guys Unknown Guys Bad Guys

The foundation for genuine property tax relief is a meaningful homeowner property tax cap amendment to the Indiana Constitution. A meaningful constitutional homeowner property tax cap will enable Hoosier working families to reasonably predict their property taxes so they do not become an unaffordable burden that could lead to the loss of the family home. A meaningful cap ends the legacy of failure where (1) we suffer permanent tax increases for temporary property tax relief and (2) property tax caps disappear.

Senate Joint Resolution 1 passed the Indiana Senate 40-7 and the Indiana House 79-20 on March 14, 2008, and was signed by the Governor on March 19, 2008. SJR 1 amends the Indiana Constitution to cap homeowners' property tax bills at 1% of assessed value, rental and agricultural property at 2%, and business property at 3%. For property taxes first due and payable in 2012, 90 of Indiana's 92 counties must have a homeowner property tax cap that is 1% of the gross assessed value. Until 2020, existing debt service prior to July 1, 2008, is exempted from the 1% homeowner gross assessed value cap in Lake and St. Joseph counties ONLY. The result of these two existing debt service exemptions equates to a 1.88% homeowner cap in Lake County and a 1.52% homeowner cap in St. Joseph County. The homeowner caps for Lake and St. Joseph counties must become 1% in 2020.

The exact same version of SJR 1 that passed in 2008 must again pass in the General Assembly in 2009 or 2010 to put the 1% constitutional homeowner property tax cap amendment on the 2010 ballot. We the people can then vote to make the 1% homeowner property tax cap a permanent part of the Indiana Constitution.

Never has it been so easy to separate the Good Guys from the Bad Guys. A General Assembly member who pledges to vote for the exact same version of SJR 1 that passed in 2008 is a Good Guy, otherwise the legislator is a Bad Guy. The General Assembly member who does not respect his or her electorate enough to clearly declare whether he or she is for or against SJR 1 is an Unknown Guy. The identification of Good Guys versus Unknown Guys versus Bad Guys is listed next.

HOW TO IDENTIFY AND CONTACT YOUR GENERAL ASSEMBLY PUBLIC SERVANTS: (1) Go to Who's Your Legislator? at http://www.in.gov:80/apps/sos/legislator/search/ to find your Indiana House and Indiana Senate District Numbers. (2) Click on the names of your legislators below to obtain their mail address, phone number, and E-mail contact information.

Good Guys

The following Governor, State Representative, and State Senator legislators have promised to be public servants that are Good Guys by pledging to vote for the exact same version of Senate Joint Resolution 1 that passed in 2008.

Governor: Mitch Daniels.

Indiana Senate
District 5: Ed Charbonneau District 6: Sue Landske District 7: Brandt Hershman District 9: Ryan D. Mishler District 12: Carlin J. Yoder District 16: David C. Long District 17: Gary Dillon District 18: Randall Head District 20: Luke Kenley District 22: Ron Alting District 23: Philip L. (Phil) Boots District 24: Connie Lawson District 28: Beverly J. Gard District 29: Mike Delph District 30: Teresa S. Lubbers District 31: James W. Merritt, Jr. District 32: Patricia L. Miller District 35: R. Michael Young District 36: Brent Waltz District 37: Richard D. Bray District 44: Brent E. Steele

Indiana House of Representatives

District 4: Ed Soliday District 15: Donald J. Lehe District 16: Douglas L. Gutwein District 19: "Shelli" Rochelle VanDenburgh District 20: Tom Dermody District 22: William J. "Bill" Ruppel District 23: William C. Friend District 24: Richard "Rich" McClain District 26: Randy Truitt District 28: Jeffrey A. Thompson District 32: P. Eric Turner District 33: Bill J. Davis District 34: Dennis Tyler District 35: L. Jack Lutz District 38: Jacqueline "Jacque" R. Clements District 39: Jerry Torr District 40: Gregory E. Steuerwald District 41: Timothy (Tim) Brown District 45: Bruce A. Borders District 46: Vern Tincher District 47: Ralph M. Foley District 48: Timothy Neese District 49: Wes Culver District 51: Richard A. Dodge District 52: David Yarde II District 53: Robert "Bob" Cherry District 55: Tom Knollman District 58: Woody Burton District 59: Milo Smith District 65: Eric A. Koch District 67: Cleo Duncan District 69: David Cheatham District 83: Matt Bell District 84: Randy L. Borror District 85: Phyllis J. Pond District 87: Cindy Noe District 88: Brian C. Bosma District 90: Michael B. Murphy District 91: Robert W. Behning District 92: Phillip D. (Phil) Hinkle District 93: David N. Frizzell District 100: John J. Day

Unknown Guys

The following legislators are Unknown Guys because they decline to clearly declare whether they are for or against Senate Joint Resolution 1. We The People deserve legislators who respect us enough to fully inform us on their SJR 1 position. Please contact these candidates and ask them to be Good Guys by pledging to vote for the exact same version of Senate Joint Resolution 1 that passed in 2008.

Indiana Senate
District 1: Frank Mrvan, Jr. District 2: Lonnie M. Randolph District 3: Earline S. Rogers District 11: Joe Zakas District 14: Dennis K. Kruse District 15: Thomas J. Wyss District 19: Travis Holdman District 21: James (Jim) R. Buck District 25: Tim Lanane District 27: Allen E. Paul District 39: John M. Waterman District 41: Greg Walker District 43: Johnny Nugent District 45: James (Jim) Lewis District 46: Connie Weigleb Sipes District 47: Richard D. Young, Jr. District 50: Vaneta G. Becker

Indiana House of Representatives

District 2: Earl L. Harris District 3: Charlie Brown District 6: B. Patrick Bauer District 7: David L. Niezgodski District 10: Charles "Chuck" Moseley District 11: Dan Stevenson District 14: Vernon G. Smith District 17: Nancy Dembowski District 18: David A. Wolkins District 29: Kathy Kreag Richardson District 30: Ron Herrell District 31: Joe Pearson District 36: Terri Jo Austin District 37: Scott E. Reske District 42: F. Dale Grubb District 50: Dan J. Leonard District 57: Sean R. Eberhart District 64: Kreg Battles District 66: Terry Goodin District 68: Robert J. Bischoff District 71: Steven R. Stemler District 72: Edward D. (Ed) Clere District 73: Dennie Oxley District 77: Gail Riecken District 78: Suzanne Crouch District 80: Phil GiaQuinta District 81: Winfield C. Moses District 82: Jeff Espich District 94: Cherrish S. Pryor District 96: Gregory W. Porter District 98: William A. Crawford District 99: Vanessa J. Summers

Bad Guys

The following State Representative and State Senator legislators have indicated that they will be Bad Guy messengers for the property tax spenders by NOT pledging to vote for the exact same version of Senate Joint Resolution 1 that passed in 2008. Please contact these candidates and ask them to be Good Guys by pledging to vote for the exact same version of Senate Joint Resolution 1 that passed in 2008.

Indiana Senate
District 4: Karen Tallian District 8: Jim Arnold District 10: John E. Broden District 13: Marlin A. Stutzman District 26: Sue Errington District 33: Greg Taylor District 34: Jean Breaux District 38: Timothy D. (Tim) Skinner District 40: Vi Simpson District 42: Jean Leising District 48: Lindel O. Hume District 49: Bob Deig

Indiana House of Representatives

District 1: Linda C. Lawson District 5: Craig R. Fry District 8: Ryan M. Dvorak District 9: Scott D. Pelath District 12: Mara Candelaria Reardon District 13: Chester F. Dobis District 21: Jackie Walorski District 25: Jeb Bardon District 27: Sheila Klinker District 43: Clyde Kersey District 44: Nancy A. Michael District 54: Thomas E. (Tom) Saunders District 56: Phillip C. Pflum District 60: Peggy Welch District 61: Matt Pierce District 62: Sandra Blanton District 63: Mark B. Messmer District 70: Paul J. Robertson District 74: Russ Stilwell District 75: Dennis T. Avery District 76: W. Trent VanHaaften District 79: Matthew S. Lehman District 86: Edward O. DeLaney District 89: John F. Barnes District 95: John L. Bartlett District 97: Mary Ann Sullivan

Immediate action needed!
11/15/2008: Please do your part to implement the following Watchdog Indiana Action Plan in support of the constitutional property tax caps in Senate Joint Resolution 1.

1. Contact your elected public servants in the General Assembly. Phone, E-mail, or send a letter to your State Representative and State Senator letting them know that you support constitutional property tax caps and that you want SJR 1 passed promptly. Information on how to identify and contact your state legislators can be found above.

2. Contact Indiana House Speaker B. Patrick Bauer. Let Speaker Bauer know that you support constitutional property tax caps and that you want him to allow a prompt vote on SJR 1. Speaker Bauer can be reached by calling (800) 382-9842 or (317) 232-9600. His E-mail address is H6@in.gov. You can write to Speaker Bauer at (a) Indiana House of Representatives, 200 W. Washington St., Indianapolis, IN 46204, or (b) 1307 Sunnymede Ave., South Bend, IN 46615. (By the way, also ask Speaker Bauer to meet with Watchdog Indiana. Watchdog Indiana is the leading citizen advocate for constitutional property tax caps. If Speaker Bauer continues to refuse to meet with Watchdog Indiana, then he is admitting that he cares nothing about the desire of Hoosier working families for a more fair and affordable state and local tax burden.)

3. Send a letter to the editor of your local newspaper. This is an effective way to show your support for the constitutional property tax caps in SJR 1. The E-mail addresses and online forms for 138 Indiana newspaper editors can be found at http://www.finplaneducation.net/letters_to_the_editor_via_e-mail.htm.

4. Invest $5.42 in a television ad campaign. A very effective cable TV ad campaign could be undertaken throughout the state if one of every three Watchdogs receiving this E-mail Update puts a 42-cent stamp on an envelope and mails a $5 check to Watchdog Indiana. The focus of this positive ad campaign would be to (a) educate Hoosiers on the importance of constitutional property tax caps and (b) motivate Hoosiers to let their General Assembly legislators know that SJR 1 must be promptly passed. Your Watchdog Indiana contributions are anonymous as long as your total contributions are less than $100 a calendar year. The Watchdog Indiana mailing address is 2625 Countryside Drive, Lebanon, IN 46052. Contributions to Watchdog Indiana are not tax deductible.

Apathy is not an option. You must ACT NOW if the constitutional property tax caps in Senate Joint Resolution 1 are to be saved! Otherwise, the single-interest property tax spenders will win and we will soon have NO property tax relief to show for the latest statewide sales tax increase. The constitutional property tax caps in SJR 1 are necessary for a more fair and affordable working family tax burden.

Did You Know?
08/26/2008:

The 2008 House Bill 1001 passed the Indiana House 82-17 and the Indiana Senate 41-6 on March 14. Governor Mitch Daniels signed HB 1001 on March 19. HB 1001 is a comprehensive property tax relief bill.

HB 1001 may make the state and local tax burden of Hoosier working families more fair and affordable by moving away from property taxes to sales and income taxes. Listed next is the fiscal analysis for the next three calendar years.

2008 Tax Reductions = $620 million: $620 million from an additional Homestead Credit
2008 Tax Increases = $621 million: $621 million from the statewide Sales Tax increase

2009 Tax Reductions = $3.2078 billion: $2.8533 billion from the State Assumption of Property Tax Levies, $204.0 million from additional Property Tax Cap Circuit Breaker Credits, $140 million from a temporary Homestead Credit, $10.5 million from an increase in the Renter's Deduction
2009 Tax Increases = $2.9771 billion (excluding any new local option income taxes imposed by counties): $2.0285 billion from the elimination of PTRC/Homestead Credits, $948.6 million from the statewide Sales Tax increase

2010 Tax Reductions = $3.4082 billion: $2.9683 billion from the State Assumption of Property Tax Levies, $317.6 million from additional Property Tax Cap Circuit Breaker Credits, $80 million from a temporary Homestead Credit, $10.6 million from an increase in the Renter's Deduction, $31.7 million from an increase in the Earned Income Tax Credit.
2010 Tax Increases = $3.0002 billion (excluding any new local option income taxes imposed by counties): $2.0285 billion from the elimination of PTRC/Homestead Credits, $971.7 million from the statewide Sales Tax increase

HB 1001 creates two significant problems.

PROBLEM #1 The Distressed Unit Appeals Board is a ticking property tax bomb.

Indiana Code 6-1.1-20.3 defines a "distressed" political subdivision as one that expects to have its property tax collections reduced by at least five percent (5%) in a calendar year. A distressed political subdivision can appeal to the state's Distressed Unit Appeals Board, which consists of four state bureaucrats, three elected local officials appointed by the governor, one other governor appointee, and one speaker of the house appointee. The Board may do any of the following for a distressed political subdivision: (a) increase the subdivision's property tax cap percentage thresholds, (b) provide for percentage reductions in the subdivision's property tax credits, (c) remove from the subdivision's property tax caps those property taxes imposed to pay bonds, leases, or other debt obligations. A distressed political subdivision may also petition the tax court for judicial review of a final determination of the Board. The term "political subdivision" includes all of the following: county, city, town, township, school corporation, library district, local housing authority, fire protection district, public transportation corporation, local building authority, local hospital authority or corporation, local airport authority, special service district, other separate local government entity that may sue or be sued, special taxing district.

The constitutional property tax caps in Senate Joint Resolution 1 must be passed to keep the legislative property tax caps in House Bill 1001 from being increased by the Distressed Unit Appeals Board. SJR 1 would make unconstitutional any Distressed Unit Appeals Board decision that would increase a political subdivision's property tax caps.

PROBLEM #2 The county-wide Local Option Income Tax that counties can impose to replace revenue lost from property tax caps punishes low-tax areas to support high-tax areas.

Additional property tax replacement revenue tools are needed to keep income tax payers in county areas with a lower property tax burden from improperly subsidizing those county areas with a higher property tax burden. Political subdivisions with higher property tax rates will cause the property tax caps to be triggered faster than political subdivisions with lower property tax rates. It is not right for income tax payers in political subdivisions with a lower property tax rate to bear the burden of replacement revenue for political subdivisions with higher property tax rates.

The Legislative Services Agency is preparing a new Jeff Thompson Property Tax Replacement Plan that allows each local taxing unit within a county to impose its own unique variable income tax to replace the revenue lost from property tax caps. This will keep income tax payers in local taxing units with a lower property tax burden from having to subsidize local taxing units with a higher property tax burden.

Hot Topics.

Indiana General Assembly & Governor Ratings: Watchdog Indiana provides the only ratings of state legislators and the governor based on how their votes on key legislative proposals from 2002 to the present affect the state and local tax burden of Hoosier working families.

Property Tax Assessment Issues: There are those who question the importance of the 1% homeowner property tax cap because the cap is based on the gross assessed value of the homestead property, which is allowed to fluctuate. Homeowner property tax assessments will likely CREEP UP over time, but these assessment increases BY THEMSELVES are NOT expected to cause homeowner property taxes to LEAP UP. In other words, the 1% homeowner property tax cap in Senate Joint Resolution 1 is the foundation for genuine property tax relief even if homeowner property tax assessments increase because of market value increases.

NEW! Jeff Thompson Property Tax Replacement Plan: Every local taxing unit has the option of entirely replacing property the tax burden of typical Hoosier working families with variable individual local income taxes. As shown by Accurate Property Tax Math, the average Hoosier working family spent 4.1% of their state taxable income to pay their 2006 property tax. The Jeff Thompson Property Tax Replacement Plan Impact is a real eye-opener!

Property Tax Betrayal & Incompetence 2002-2007: Indiana General Assemblies and Governors have turned a promised 16.3% homeowner property tax reduction in 2003 into a decrease of just 2.4% in four years. Details regarding the betrayal and incompetence over the years are included in the General Assembly Property Tax Legislation.

Indiana Foreclosure Prevention Network: If you or someone you know is behind on the mortgage, or even in danger of falling behind, please contact the IFPN, a statewide program to provide free mortgage foreclosure counseling and education to at-risk homeowners. All Network services are free, and all Network counselors are certified by the U.S. Department of Housing and Urban Development, or HUD.

IHCDA University: The Indiana Housing and Community Development Authority has a free online course to educate prospective homebuyers on the home purchasing process.

"Major Moves": The 2006 Indiana House Bill 1008 is Taxpayer UNfriendly because it authorizes a toll road for an I-69 extension between Martinsville and Evansville.

Watchdog Indiana Topics Index
Click here for access to the various Watchdog Indiana web pages related to 25 different topic areas.

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E-mail to the Editor of your local newspaper a letter or opinion article about state cash revenues, cash spending, and long-term debt assumption. Use Letters To The Editor Via E-mail to find the E-mail address of the Editor of your local newspaper.

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This page was last updated on 01/05/09.