Hoosiers statewide will vote November 2, 2010, on a Constitutional Amendment to (1) make the 1% - 2% - 3% property tax caps permanent and (2) protect homestead property tax deductions from legal challenge.

As the leading citizen advocate for the Constitutional Amendment, Watchdog Indiana will assemble and coordinate Constitutional Amendment Education Teams to participate in meetings throughout the state to better inform voters about their November 2 choice.

Voter education on the Constitutional Amendment is important. According to the Watchdog Indiana pulse poll early in 2010, 44% of likely voters will vote for the Constitutional Amendment, while 23% will vote against it and 33% are undecided. The undecided voters need factual information to make an informed decision.

Starting March 15, the Education Teams will be available to attend meetings hosted by any organization or individual. Interested organizations and individuals should contact Watchdog Indiana if they would like to schedule an Education Team to participate in their meeting.

The ideal Education Team will have up to three Constitutional Amendment proponents and up to three opponents. Anyone is eligible to apply to Watchdog Indiana to be a proponent or opponent on an Education Team. It is expected that Education Team membership will vary depending on where the hosts schedule meetings.

A good meeting format will include audience questions between opening and closing comments by the Education Team. Watchdog Indiana will provide handouts that include the Constitutional Amendment legal language, digest explanation, and ballot language. Watchdog Indiana will also make available nonpartisan information from the Indiana Legislative Services Agency on how the property tax caps and 2008 property tax reform program will affect the tax burden of local working families and businesses, local school revenues, and the revenues of the other local government units where a meeting is held.

With the understanding that participation will depend on schedule availability, please contact Watchdog Indiana if you would like to be a Member of a Constitutional Amendment Education Team. Indicate if you are a proponent or an opponent, and list the counties where you would like to be an Education Team Member. It is perfectly acceptable for someone to be both an Education Team Member and a meeting Host.

Constitutional Amendment Education Team Members
(proponents are highlighted in green, opponents are highlighted in blue)

Adams County: Aaron Smith (Watchdog Indiana Founder)
Allan County: Aaron Smith (Watchdog Indiana Founder)
Bartholomew County: Aaron Smith (Watchdog Indiana Founder)
Benton County: Aaron Smith (Watchdog Indiana Founder)
Blackford County: Aaron Smith (Watchdog Indiana Founder)
Boone County: Aaron Smith (Watchdog Indiana Founder)
Brown County: Aaron Smith (Watchdog Indiana Founder)
Carroll County: Aaron Smith (Watchdog Indiana Founder)
Cass County: Aaron Smith (Watchdog Indiana Founder)
Clark County: Pat Harrison (Southern Indiana REALTORS Association Director), Aaron Smith (Watchdog Indiana Founder)
Clay County: Aaron Smith (Watchdog Indiana Founder)
Clinton County: Aaron Smith (Watchdog Indiana Founder)
Crawford County: Aaron Smith (Watchdog Indiana Founder)
Daviess County: Mark Messmer (State Representative), Aaron Smith (Watchdog Indiana Founder)
Dearborn County: Aaron Smith (Watchdog Indiana Founder)
Decatur County: Aaron Smith (Watchdog Indiana Founder)
Dekalb County: Aaron Smith (Watchdog Indiana Founder)
Delaware County: Aaron Smith (Watchdog Indiana Founder)
Dubois County: Mark Messmer (State Representative), Aaron Smith (Watchdog Indiana Founder)
Elkhart County: Aaron Smith (Watchdog Indiana Founder)
Fayette County: Aaron Smith (Watchdog Indiana Founder)
Floyd County: Pat Harrison (Southern Indiana REALTORS Association Director), Aaron Smith (Watchdog Indiana Founder)
Fountain County: Aaron Smith (Watchdog Indiana Founder)
Franklin County: Aaron Smith (Watchdog Indiana Founder)
Fulton County: Aaron Smith (Watchdog Indiana Founder)
Gibson County: Aaron Smith (Watchdog Indiana Founder)
Grant County: Aaron Smith (Watchdog Indiana Founder)
Greene County: Aaron Smith (Watchdog Indiana Founder)
Hamilton County: Aaron Smith (Watchdog Indiana Founder)
Hancock County: Aaron Smith (Watchdog Indiana Founder)
Harrison County: Pat Harrison (Southern Indiana REALTORS Association Director), Aaron Smith (Watchdog Indiana Founder)
Hendricks County: Aaron Smith (Watchdog Indiana Founder)
Henry County: Aaron Smith (Watchdog Indiana Founder)
Howard County: Aaron Smith (Watchdog Indiana Founder)
Huntington County: Aaron Smith (Watchdog Indiana Founder)
Jackson County: Aaron Smith (Watchdog Indiana Founder)
Jasper County: Aaron Smith (Watchdog Indiana Founder)
Jay County: Aaron Smith (Watchdog Indiana Founder)
Jefferson County: Aaron Smith (Watchdog Indiana Founder)
Jennings County: Aaron Smith (Watchdog Indiana Founder)
Johnson County: Aaron Smith (Watchdog Indiana Founder)
Knox County: Aaron Smith (Watchdog Indiana Founder)
Kosciusko County: Aaron Smith (Watchdog Indiana Founder)
LaGrange County: Aaron Smith (Watchdog Indiana Founder)
Lake County: Frank Mrvan (State Senator), Aaron Smith (Watchdog Indiana Founder)
LaPorte County: Aaron Smith (Watchdog Indiana Founder)
Lawrence County: Aaron Smith (Watchdog Indiana Founder)
Madison County: Aaron Smith (Watchdog Indiana Founder)
Marion County: Aaron Smith (Watchdog Indiana Founder)
Marshall County: Aaron Smith (Watchdog Indiana Founder)
Martin County: Mark Messmer (State Representative), Aaron Smith (Watchdog Indiana Founder)
Miami County: Aaron Smith (Watchdog Indiana Founder)
Monroe County: Aaron Smith (Watchdog Indiana Founder)
Montgomery County: Aaron Smith (Watchdog Indiana Founder)
Morgan County: Aaron Smith (Watchdog Indiana Founder)
Newton County: Aaron Smith (Watchdog Indiana Founder)
Noble County: Aaron Smith (Watchdog Indiana Founder)
Ohio County: Aaron Smith (Watchdog Indiana Founder)
Orange County: Aaron Smith (Watchdog Indiana Founder)
Owen County: Aaron Smith (Watchdog Indiana Founder)
Parke County: Aaron Smith (Watchdog Indiana Founder)
Perry County: Aaron Smith (Watchdog Indiana Founder)
Pike County: Mark Messmer (State Representative), Aaron Smith (Watchdog Indiana Founder)
Porter County: Aaron Smith (Watchdog Indiana Founder)
Posey County: Aaron Smith (Watchdog Indiana Founder)
Pulaski County: Aaron Smith (Watchdog Indiana Founder)
Putnam County: Aaron Smith (Watchdog Indiana Founder)
Randolph County: Aaron Smith (Watchdog Indiana Founder)
Ripley County: Aaron Smith (Watchdog Indiana Founder)
Rush County: Aaron Smith (Watchdog Indiana Founder)
St. Joseph County: Aaron Smith (Watchdog Indiana Founder)
Scott County: Aaron Smith (Watchdog Indiana Founder)
Shelby County: Aaron Smith (Watchdog Indiana Founder)
Spencer County: Aaron Smith (Watchdog Indiana Founder)
Starke County: Aaron Smith (Watchdog Indiana Founder)
Steuben County: Aaron Smith (Watchdog Indiana Founder)
Sullivan County: Aaron Smith (Watchdog Indiana Founder)
Switzerland County: Aaron Smith (Watchdog Indiana Founder)
Tippecanoe County: Aaron Smith (Watchdog Indiana Founder)
Tipton County: Aaron Smith (Watchdog Indiana Founder)
Union County: Aaron Smith (Watchdog Indiana Founder)
Vanderburgh County: Aaron Smith (Watchdog Indiana Founder)
Vermillion County: Aaron Smith (Watchdog Indiana Founder)
Vigo County: Aaron Smith (Watchdog Indiana Founder)
Wabash County: Aaron Smith (Watchdog Indiana Founder)
Warren County: Aaron Smith (Watchdog Indiana Founder)
Warrick County: Aaron Smith (Watchdog Indiana Founder)
Washington County: Aaron Smith (Watchdog Indiana Founder)
Wayne County: Aaron Smith (Watchdog Indiana Founder)
Wells County: Aaron Smith (Watchdog Indiana Founder)
White County: Aaron Smith (Watchdog Indiana Founder)
Whitley County: Aaron Smith (Watchdog Indiana Founder)

Education Meeting Hosts may include, but are not limited to, an individual citizen (or citizens) and any of the following local organizations: business, chamber of commerce, college, farm bureau, government entity, League of Women Voters, labor union, library, media outlet, non-profit group, political party, school corporation, service organization, taxpayer association.

Please send an E-mail to taxless3@comcast.net if you wish to be an Education Meeting Host.

The Education Meeting Host will need to schedule an acceptable no-smoking meeting place that has sufficient seating for the anticipated audience.

Education Meeting media coverage, including coverage on a local cable TV government access channel, would be desirable if it is practical to make such an arrangement.

Perhaps the Education Meeting can be recorded and put on appropriate websites for playback by interested persons.

Acceptable local meeting places include, but are not limited to, schools, libraries, local government buildings, local fair buildings, local community centers, and the regular meeting places of local service and fraternal groups.

Tables and chairs at the front of the meeting room will be needed for the Education Team Members.

A sound system with at least three microphones is desirable - two microphones on the tables for the Education Team Members and one microphone for audience members to use when asking questions.

Brochure-sized handouts should be allowed, as long as the source of the handout content is clearly identified.

PUBLICITY (Host may not have resources to complete all suggested publicity):

( ) 7. Watchdog Indiana: "Scheduled" E-mail sent to County Watchdogs announcing the Education Meeting

( ) 21. Sound system - three microphones are desirable - two microphone on the Education Team Members table and one microphone to be handed to audience questioners

( ) 23. WI: Handout with constitutional amendment legal language, digest explanation, and ballot language

( ) 24. Table at the back of the meeting room for brochures (brochure-sized handouts allowed if the source of the handout content is clearly identified)

PRINTING CODE. Amendments: Whenever a section of the Indiana Constitution is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in ~~this~~ ~~style~~ ~~type.~~

SENATE ENROLLED JOINT
RESOLUTION No. 1

A JOINT RESOLUTION proposing an amendment to Article 10, Section 1 of the Constitution of the State of Indiana concerning taxation.

SOURCE: CON 10; (08)SJ0001.4.2. -->     SECTION 2. ARTICLE 10, SECTION 1 OF THE CONSTITUTION OF THE STATE OF INDIANA IS AMENDED TO READ AS FOLLOWS: Section 1. (a) Subject to this section, the General Assembly shall provide, by law, for a uniform and equal rate of property assessment and taxation and shall prescribe regulations to secure a just valuation for taxation of all property, both real and personal.
    (b) A provision of this section permitting the General Assembly to exempt property from taxation also permits the General Assembly to exercise its legislative power to enact property tax deductions and credits for the property. The General Assembly may impose reasonable filing requirements for an exemption, deduction, or credit.
     (c) The General Assembly may exempt from property taxation any property in any of the following classes:

        (1) Property being used for municipal, educational, literary, scientific, religious, or charitable purposes.
        (2) Tangible personal property other than property being held as an investment.
        (3) Intangible personal property.
        (4) Tangible ~~real~~ property, including curtilage, used as a principal place of residence by an:
            (A) owner of the property;
            (B) individual who is buying the tangible ~~real~~ property under a contract; or
            (C) individual who has a beneficial interest in the owner of the tangible ~~real~~ property.
    ~~(b)~~ (d) The General Assembly may exempt any motor vehicles, mobile homes (not otherwise exempt under this section), airplanes, boats, trailers, or similar property, provided that an excise tax in lieu of the property tax is substituted therefor.
     (e) This subsection applies to property taxes first due and payable in 2012 and thereafter. The following definitions apply to subsection (f):
        (1) "Other residential property" means tangible property (other than tangible property described in subsection (c)(4)) that is used for residential purposes.
        (2) "Agricultural land" means land devoted to agricultural use.
        (3) "Other real property" means real property that is not tangible property described in subsection (c)(4), is not other residential property, and is not agricultural land.
     (f) This subsection applies to property taxes first due and payable in 2012 and thereafter. The General Assembly shall, by law, limit a taxpayer's property tax liability as follows:
        (1) A taxpayer's property tax liability on tangible property described in subsection (c)(4) may not exceed one percent (1%) of the gross assessed value of the property that is the basis for the determination of property taxes.
        (2) A taxpayer's property tax liability on other residential property may not exceed two percent (2%) of the gross assessed value of the property that is the basis for the determination of property taxes.
        (3) A taxpayer's property tax liability on agricultural land may not exceed two percent (2%) of the gross assessed value of the land that is the basis for the determination of property taxes.
        (4) A taxpayer's property tax liability on other real property may not exceed three percent (3%) of the gross assessed value of the property that is the basis for the determination of property taxes.
        (5) A taxpayer's property tax liability on personal property (other than personal property that is tangible property described in subsection (c)(4) or personal property that is other residential property) within a particular taxing district may not exceed three percent (3%) of the gross assessed value of the taxpayer's personal property that is the basis for the determination of property taxes within the taxing district.
    (g) This subsection applies to property taxes first due and payable in 2012 and thereafter. Property taxes imposed after being approved by the voters in a referendum shall not be considered for purposes of calculating the limits to property tax liability under subsection (f).
     (h) As used in this subsection, "eligible county" means only a county for which the General Assembly determines in 2008 that limits to property tax liability as described in subsection (f) are expected to reduce in 2010 the aggregate property tax revenue that would otherwise be collected by all units of local government and school corporations in the county by at least twenty percent (20%). The General Assembly may, by law, provide that property taxes imposed in an eligible county to pay debt service or make lease payments for bonds or leases issued or entered into before July 1, 2008, shall not be considered for purposes of calculating the limits to property tax liability under subsection (f). Such a law may not apply after December 31, 2019.

For property taxes first due and payable in 2012 and thereafter, requires the General Assembly to limit a taxpayer's property tax liability as follows: (1) A taxpayer's property tax liability on homestead property may not exceed 1% of the gross assessed value of the homestead property. (2) A taxpayer's property tax liability on other residential property (residential rentals, apartments, mobile home land, long term care facilities) may not exceed 2% of the gross assessed value of the other residential property. (3) A taxpayer's property tax liability on agricultural land may not exceed 2% of the gross assessed value of the property that is the basis for the determination of the agricultural land. (4) A taxpayer's property tax liability on other real property may not exceed 3% of the gross assessed value of the other real property. (5) A taxpayer's property tax liability on personal property may not exceed 3% of the gross assessed value of the taxpayer's personal property that is the basis for the determination of property taxes within a particular taxing district.

Specifies that property taxes imposed after being approved by the voters in a referendum shall not be considered for purposes of calculating the limits to property tax liability under these provisions.

Provides that in the case of a county for which the General Assembly determines in 2008 that limits to property tax liability are expected to reduce in 2010 the aggregate property tax revenue that would otherwise be collected by all units and school corporations in the county by at least 20%, the General Assembly may provide that property taxes imposed in the county to pay debt service or make lease payments for bonds or leases issued or entered into before July 1, 2008, shall not be considered for purposes of calculating the limits to property tax liability. Specifies that such a law may not apply after December 31, 2019.

Permits the General Assembly to exempt a mobile home used as a homestead to the same extent as real property. Specifies that an exemption may be granted in the form of a deduction or credit.

Specifies that the general assembly may impose reasonable filing requirements to obtain an exemption, deduction, or credit.

The preceding SJR 1 digest needs some clarification regarding the constitutional homeowner property tax cap amendment. For property taxes first due and payable in 2012, 90 of Indiana's 92 counties will have a constitutional 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. What it all boils down to is that the constitutional homeowner property tax cap amendment for 90 counties is 1% of the gross assessed value while the caps for Lake and St. Joseph counties are estimated by Watchdog Indiana to be 1.88% and 1.52% respectively. The caps for Lake and St. Joseph counties will become 1% in 2020.

The preceding SJR 1 digest explanation needs some clarification regarding the exemption that may be granted in the form of a deduction or credit.

Part (b) of the SJR 1 amendment to Article 10 Section 1 of the Indiana Constitution reads:

(b) A provision of this section permitting the General Assembly to exempt property from taxation also permits the General Assembly to exercise its legislative power to enact property tax deductions and credits for the property. The General Assembly may impose reasonable filing requirements for an exemption, deduction, or credit.

Parts (c) and (d) of the constitutional amendment list what classes of property the General Assembly is permitted to exempt from taxation:

(c) The General Assembly may exempt from property taxation any property in any of the following classes:
     (1) Property being used for municipal, educational, literary, scientific, religious, or charitable purposes.
     (2) Tangible personal property other than property being held as an investment.
     (3) Intangible personal property.
     (4) Tangible ~~real~~ property, including curtilage, used as a principal place of residence by an:
          (A) owner of the property;
          (B) individual who is buying the tangible ~~real~~ property under a contract; or
          (C) individual who has a beneficial interest in the owner of the tangible ~~real~~ property.
~~(b)~~ (d) The General Assembly may exempt any motor vehicles, mobile homes (not otherwise exempt under this section), airplanes, boats, trailers, or similar property, provided that an excise tax in lieu of the property tax is substituted therefor.

Because part (c) (2) permits the General Assembly to exempt from taxation tangible personal property other than property being held as an investment, the constitutional amendment permits the General Assembly to enact property tax deductions and credits for most tangible personal property including manufacturing equipment, construction equipment, and farm equipment. The constitutional amendment gives the business and farm communities new possibilities for property tax reduction.

Because part (c) (4) permits the General Assembly to exempt principal places of residence from taxation, the following homeowner property tax deductions become constitutional: $45,000 homestead standard, 35% supplemental standard, mortgage, 65 or over, blind or disabled, partially disabled veteran - service connected, disabled veteran, rehabilitation, solar energy, wind-powered devices, hydro-electric power device, geothermal energy.

    Shall property taxes be capped for all classes of property by amending Article 10, Section 1 of the Constitution of the State of Indiana to:
        (1) limit a taxpayer's property tax liability to 1% of the gross assessed value of homestead property, 2% of the gross assessed value of other residential property, 2% of the gross assessed value of agricultural land, 3% of the gross assessed value of other real property, and 3% of the gross assessed value of personal property, excluding any property taxes imposed after being approved by the voters in a referendum and excluding property taxes that are for bonds issued before July 1, 2008, and are imposed before 2020 in Lake County or St. Joseph County;
        (2) permit the General Assembly to exempt a mobile home used as a homestead to the same extent as real property; and
        (3) specify that a property tax exemption may be granted in the form of a deduction or credit, and that the General Assembly may impose reasonable filing requirements to obtain an exemption, deduction, or credit?

May 13: Indianapolis, Meridian-Kessler Neighborhood Association Property Tax Forum