So We have property tax relief folks

From a email from our man Mitch:

"The final legislature hurdle was cleared at 3:19 p.m. today when the Indiana Senate voted 41-6 to pass House Bill 1001, the sweeping property tax proposal that raises the sales tax and caps property tax bills in order to cut the average Hoosier homeowners' tax bill by about 30 percent this year."

" In addition, both the chambers also voted to put the property tax caps into the state constitution, starting in 2012. Those caps limit homeowners' bills to 1 percent of their homes' assessed valuation, with rental and farm property capped at 2 percent and business property limited to 3 percent."

"The legislation includes much of a framework proposed by Daniels in October, including immediate tax relief, a sales tax increase to 7 percent from the current 6 percent, caps on property taxes, the elimination of some township assessors, referendums on major building projects and spending controls for local government."

Sen. Luke Kenley, the Noblesville Republican who was a chief architect of the plan, said the package -- which raises the sales tax, shifts several levies off counties and to the state, and limits homeowners' bills from ever being more than 1 percent of their homes' assessed value -- resolves a taxing issue that has confounded states across the nation.

"It's going to put Indiana in the forefront," Kenley told his colleagues. "We will probably have the best property tax system in the United States of America when we get done.

"People's faith and confidence in the system has been shaken to the core," said Sen. Teresa Lubbers, R-Indianapolis. "It's time to do something bold. And I clearly believe that this was the year that we had our marching orders. We heard what people were saying. We've acted responsibly."

House Minority Leader Brian Bosma, R-Indianapolis, told the House that, "I truly believe what we have before us is the strongest property-tax reform measure this state has seen in nearly two generations.
___________________________________________________________________

Now I have a few questions.

My house is appraised at $103,000 on my 2006 bill. My taxes were $1045.00 for the year. Opps, here comes the 2007 bills at $1509.00 for the year.
With the 1% cap on my property, I will be paying about $1003.00 or $42.00 less then I did in 2006 and or from the famous bills of 2007 $506.00 less. Now this is what I call a tax break. Oh wait, I will be paying another 1% on the new raise in the sale tax. That means I will be in the hole once again.

This may be less taxes in the future but I do not see any tax break in this for today. So I say to the people who are patting each other on their backs, Don’t get to comfortable because the public is not buying it.