New Indiana Tax Structure Signed Into Law

A new tax structure was signed into law today in Indiana. Governor Mitch Daniels approved the measure that will increase the state’s sales tax from six to seven percent on April first, and cap homeowners’ property tax burden at one-percent of their home’s assessed value. The Indiana Association of School Business Officials’ Dennis Costerison says those caps will affect a number of school districts that depend on that tax revenue."Not every school district, but about a third of the school districts are impacted by some loss of revenue and that does concern us, even though those are not funds that go into the classroom, they are very important funds as far as making sure and maintaining the schools run effectively, especially the running of transportation," said Costerison.Costerison hopes lawmakers will be willing to go back and make smaller changes to the tax plan in the future.