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INDIANAPOLIS (March 24, 2006) ? Governor Mitch Daniels today signed into law House Enrolled Act 1001, which provides property tax relief for Hoosier homeowners and makes a significant change to corporate tax law.
The ?single tax factor? will shift the way corporate taxes are determined, providing benefits to companies that invest in Hoosier jobs and capital. It will help make Indiana more competitive with surrounding states and will eliminate a tax ?penalty? on companies that have substantial Indiana employment and investment.
?This is the third of the big three jobs items that occurred in this session, with Major Moves and telecommunications. Transportation leadership, telecommunications and building a favorable environment in areas like taxation are how you make a difference on the huge scale we have to try to make in Indiana,? said the governor.
Among other provisions, the bill also:
? Provides an additional 8 percent homestead credit for 2006 property taxes.
? Increases standard deduction for homeowners from $35,000 to $45,000 for 2007.
? Provides for a uniform property tax statement by 2008 and pre-notification to property taxpayers of certain information by 2009.
? Requires a mandatory 2 percent circuit breaker for homestead property in 2007, for all residential property in 2009, and for all property in 2010. It also extends the deadline for Lake County to adopt a 2 percent circuit breaker for 2006 taxes.
?I applaud the legislature for taking these steps and look forward to developing more permanent solutions that rely less on property taxation to fund local government in Indiana,? said Daniels.
The author of HEA 1001 is Rep. Jeff Espich, R-Uniondale. The Senate sponsor is Sen. Luke Kenley, R-Noblesville.
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