House Republicans: A New Direction for
Overview of 2005 House GOP Legislative Agenda
Creating Jobs and Reviving
1) Hoosier Headquarter Relocation Tax Credit
Policy Goal: To reverse the recent trend of corporate headquarters leaving the state.
2) Lifelong Learning Accounts (LiLAs)
Policy Goal: Gives all Hoosier employees and employers a tool for job training so they can remain competitive in the 21st Century marketplace.
Proposal: Explore options to allow workers to establish tax-free savings accounts to use for job-related education costs. Options include a pilot program or using the existing structure of the College Choice 529 Investment Plan.
3) Plan for our Future – Implement the IEDCorporation Transition Plan
Policy Goal: Facilitate a smooth transition of economic development duties to the new Indiana Economic Development Corporation (IEDC).
Proposal: Clarify legislative intent regarding many details of the structure of the new IEDCorporation. Specific provisions of this legislation were recommended by the IEDCorporation Transition Subcommittee under the Indiana Legislative Council.
4) The Competitive Advantage Tax Act
Policy Goal: To remove illogical discrepancies in the
Policy Goal: To
provide a cohesive voice and an organized structure, both of which are necessary
to full promote and maximize the agricultural sector and its impact on the
• Create an independent, Cabinet-level Department of Agriculture headed by a Commissioner of Agriculture appointed by the Governor.
• Allow the enterprise zone board to designate certain areas as agricultural enterprise zones that provide exemptions from property taxes and the adjusted gross income tax for agricultural processing facilities located in the zones. Note: Same as HB 1314-2004.
Controlling Government Spending and Taxation
1) 99% Spending Limitation
Policy Goal: To prevent a recurrence of the major budget deficit problems the State is now facing.
2) Support the Taxpayer Amnesty Program/Daniels Proposal
Policy Goal: Generate revenue to improve the state’s bottomline and provide economic development incentives.
3) Property Tax Deferrals for Senior Citizens
Policy Goal: Help senior citizens with limited resources deal with the effects of large property tax increases (particularly due to the 2002 reassessment) without automatically shifting the tax burden on to other property owners.
Proposal: Allow homeowners that are 65+ years old and have experienced a property tax liability increase of more than 65% above their 2002 liability to elect to defer all or part of the “excess” tax liability.
The unpaid liability would then become a lien on the property to be collected when sold.
This eligibility threshold will be raised each year to allow deferrals of any “excess” tax liability increases above 10% per year.
For seniors that did not own their current home in 2002, their property tax liability in the first year they own their home will be considered their base year for determining eligibility. The amount they may be deferred is any “excess” tax liability increases above 10% per year.
4) Tax Phase-in on Property Improvements
Policy Goal: End the current system of selective property tax abatements and ease the “shock” of tax increases that currently accompanies new investments in property (home remodeling, plant expansion, etc.). Increase the long-term rate of growth in property investment and improvement statewide.