The top Republican leaders in the General Assembly said Wednesday that a $1 billion cut in property taxes is possible next session without raising other taxes to replace the money.
Senate President Pro Tem Robert Garton and Republican House Leader Paul Mannweiler said the budget surplus for the fiscal year ended June 30 could be as high as $2 billion when figures are announced later this month.
“We feel that certainly under very simple mathematics, if there is a $2 billion budget surplus, $1 billion of that could be returned to the public and that still leaves $1 billion (in reserves),” said Mannweiler (R-Indianapolis).
“I think you can report that there will be property tax reduction next year,” said Garton (R-Columbus).
Democratic Gov. Frank O’Bannon has maintained for months that any major tax proposal should be revenue neutral, meaning property tax revenue lost through cuts should be replaced by increases in other taxes.
