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Published March 14, 2008 10:31 pm - One thing was clear after the property tax reform bill passed Friday: Referendums will play a larger role in the lives of Hoosiers in the coming years.


PROPERTY TAXES: Referendums to play larger role


The Herald Bulletin

One thing was clear after the property tax reform bill passed Friday: Referendums will play a larger role in the lives of Hoosiers in the coming years.

What does “referendum” mean? It is the process by which government officials put proposed projects or actual bills up to a vote by citizens themselves.

A capital project, such as a school, is classified as a control project if it will cost more than the lesser of $2 million or 1 percent of the total gross assessed value of all property within the political subdivision.

Under the new guidelines:

- A school building for kindergarten through eighth grade becomes a control project subject to referendum if the cost exceeds $10 million.

- A school building for grades nine through 12 becomes subject to referendum at $20 million.

- Other controlled projects (city, county, etc.) with costs exceeding $12 million or 1 percent of total assessed value are subject to referendum.

- The lesser of 5 percent of registered voters or 100 voters or property owners are required to initiate a referendum.

- Control projects not subject to referendum are still subject to the petition and remonstrance process.

- Property taxes approved by voter referendum or local public question will not be considered in calculating the circuit breaker credit.

Property taxes could go up beyond the cap if capital projects are approved by voters.

Source: Legislative Services Agency



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