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Governor Mitch Daniels today signed a bill that he says will give Hoosiers permanent property tax relief.  Daniels, along with House Speaker Pat Bauer, Senate Pro Temp David Long and Lt. Governor Becky Skillman, signed House Bill 1001 which would cut property taxes by an average of 30 percent across the state.

Property taxes were the issue of this legislative session.  The bill has the state assuming a number of levies such as child welfare and the pre-1977 police pension. It would also increase the sales tax by a penny in order to pay for tax relief. Daniels said the next step is for lawmakers to pass the recommendations suggested in the Kernan-Shepard Government Reform Commission.

House Speaker Pat Bauer said the bill would cut property taxes, but he also cautioned that it could harm local governments so he said the next eight months would be necessary to monitor the impact of the sweeping legislation.

Both men agreed that the November 2007 election loss by incumbent Indianapolis Mayor Bart Peterson to Greg Ballard probably gave lawmakers some “incentive” to pass lasting property reform.