INDIANAPOLIS -- Results from this year's legislative survey show a majority of Hoosiers in Senate District 39 support alternative revenue sources to fund local government and reduced government spending to help solve the state's property tax crisis.
Sen. John Waterman (R-Shelburn) announced the results from the survey, which focused on proposed legislation aimed at resolving the property tax crisis.
Property taxes are collected and spent at the local level and are used to fund public K-12 schools, fire, police, libraries, city, town, township and county governments.
Several property tax proposals are currently under consideration, including:
* Of the more than 1,200 respondents, a majority favored increasing sales tax by up to 1 percent and local option income tax by an average of 0.6-0.7 percent to permanently cut property taxes on owner-occupied homes by a statewide average of 50 percent,
* A plan increasing income and sales taxes by 1 percent to permanently cut property taxes on owner-occupied homes was preferred by 14 percent.
* Using an increase in sales taxes from 6 percent to 13.2 percent to completely eliminate property taxes was favored by only 7 percent, while 8 percent would rather use an increase in income taxes from 3.4 percent to 9 percent.
Gov. Mitch Daniels proposal to cap property taxes at 1 percent for residential, 2 percent for rental/non-homestead residential and 3 percent for business and personal property is supported by a majority of respondents.
More than 80 percent of respondents support the measure shifting remaining school operating costs and child welfare costs from property taxes to the state budget, while a large majority of respondents support proposals to create one assessor per county, develop standardized school construction plans to save tax dollars and protect the tax-exempt status of churches through a constitutional amendment.
Waterman serves Senate District 39, which includes Clay, Greene, Knox, Daviess, Owen, Sullivan and Vigo counties.