Look for "reclassification" pressures under this new, Constitutionally tinker toyed scheme.

Homeowners spending more than half the year from their homestead, could be subjected to the imputation of a 2% cap or the rental property classification. Don't think it's possible?

An arbitrary number of rental properties or units, can be jurisdictionally "reclassified," from rental to commercial use, or the higher "cap" at 3%. They'd never do that, right?

My calculator indicates that 500 AC of farmland (much of which is valued $3-$5K / acre), subject to a 3% commission er "cap," would "protect" a farmer with a $45K-$75K, annual tax bill on that 500 AC parcel. Those folks with homesteads plus acreage, in or bordering farmland, could be subjected to "highest & best use" on your "excess land," to the tune of 3%... That can't happen, can it?

Most of us can think of commercial property like a car dealership, or grocery store / center, where an opinion of value could be in the $3-$4M+ range, subject to a 3% cap, would be an annual tax bill of $90K - $120K. Business can handle it, and if they can't, they shouldn't be in business right? Indiana's problem is too many businesses & too few workers? Perhaps less business would mean fewer people placing a strain on a Keynesian "managed" resources...

Remember that most commercial leases are triple net (acctg. firms, law firms, insurance agencies, mom & pop retail, etc.) where the tenant pays all or most expenses, like insurance & property taxes.

Commercial vacancy rates are high (some local developments are 20% occupied or vacant). Even in a good market, a 3% premium on an opinion of commercial property value, would spell immediate devaluation for much of that sector. How many cars must a dealer sell; to clear a net that will not only sustain the business, but cover a $10K monthly premium in property taxes?

Car dealers or businesses in bordering states wouldn't see any advantage over a system of higher fixed costs- would they? The state will likely argue a case of lower fixed costs; while ignoring the carnival ride they call an "assessment system." Assessments are based on a fair, transparent standard, right? A "standard" of pensioned opinion is more reliable or trustworthy than the actual market (a sale or transaction), right?

Let's consider the in town, fat cat rental property owner, paying a 2% cap before any reclassification or 3% rate jacking. A well maintained, one BR per side double in mid town Indy seems to be selling in the $110K range (used to be $150K+ depending upon condition & location). Each side rents for in the $600 / mo range, an annual gross of $14,400, on which the owner is required to pay $2,200 in tax (15% of the gross income), for what is really the deception of ownership, after paying insurance ($1,200 / year+), vacancy rate 5%+, management fee 5%+, maintenance, damages, replacement reserve (roof, furnace, etc.), & any mortgage costs; forgetting the expense of upgrades done by many conscientious owners who by majority, tend to live in the very city or neighborhoods where they own rental property.

Under the commission structure called 1 / 2 / 3, the state enjoys a disproportional benefit or guarantee; not enjoyed by, and at the expense of, the citizen. Let's make a census bet, that a net number of citizens & businesses under this "system," will opt for fairness outside the state.

Agman,

You can bet that I will vote against the caps too. All this is, is an arbitrary, capricious extension of time for the GA. Sure, you’ll get the caps on taxes. Until the “Distressed Units Board” and, the spun-up assessments eat you alive. Relief must be spelled PHART, because I smell a giant political one in this mess.

Dave,

You can bet that businesses without abatements and the farmers will be howling like banshees, if this load of manure goes through.

Prediction: Significant devaluation of farm land (keep an eye on acreage sales), industrial & commercial use property, due to the inequities, uncertainty & absence, of coherent, fair / transparent, tax policy. Our chamber of commerce has a new marketing challenge, the Sysyphus Project. If they're paying attention, competing states will pick these coupons ("caps") apart, & key an otherwise strategy, of their own.

Racing fans might recall that drivers change caps quite a bit, but you have to follow the sport to remember who the various sponsors are.

Where are the sponsors or overseers of Indiana's actual, existing Constitutional caps; vs. the currently proposed, worthless coupons referred to as 1 / 2/ 3 ? Do the banking, manufacturing & farming folks see these new coupons as "redeemable?" Hopefully business LEADERS, will wake up & notice, that the decimal point, of gimmicks as posed as "policy," will land on wrong side of Indiana's population trends. If fewer pesky citizens is the goal (buyers, sellers, investors & depositors), ignoring the efficacy of existing caps, diluted, in favor of can kicking "appearances," of what's only new & unimproved; this state is "on track."

So, hyper-factored rates for employers or businesses, not by market value (transactional reality), but multiplied by a public pensioner's opinion on value; that will attract business to Indiana???

Doubt too many agreements here---but, I will vote against caps in the constitution because not needed there, makes for too much trash in what is to be a basic principle documents,and, in general, simply against both the caps concept and the formula. Also, against any attempt to cap assessment changes. With a whole set of complicated and abritrary blocks in the system further moves the whole process farther from reality. I am not opposed to property taxes as a means of local funding since every alternative is simply not reliable enough to provide for long term planning or even guarantee that basic services can be maintained. Of course, I am not as anti-local government as many on this blog are so coming from a different mindset.

Doug and Jack the Lad...2 thumbs up. Elevating caps into Constitutional sainthood with precise percentages was packaged and sold to the public in a statewide publicity stunt that property tax problems would be resolved. We've heard the same tripe for years. It does not eliminate the prospect of paying into a failed, convoluted, and expensive system that can threaten homeowners with an annual extortion gimmick that could spark foreclosure and auction of your home. Refurbishing an antique does not lessen it's antiquity. Lipstick on a pig, and they know it.

Caps on the taxes are the smoke. No caps on ASSessments are the mirror. If this goes through, you were just handed a ransom note from the future.

Caps are already law. This just mucks up our Constitution.