Daniels takes grief from businesses on property taxes

As I pointed out in a posting yesterday, the differential caps between homeowners, investors, and businesses were arbitrary. Aside from any efficiency issues, this approach almost necessarily invites charges of inequity.

So, it's no surprise that, today, John Ketzenberger in the Indy Star reports that...

Hours before Gov. Mitch Daniels unveiled his sweeping property tax relief plan Tuesday, two business leaders told him it wouldn't fly. The governor didn't heed their warning. So Daniels faces static from a business community that is often among his staunchest supporters and now feels it's being taken for granted....

Critics [have] quickly emerged. School administrators hate the proposed referendums. Local government officials aren't keen to eliminate township assessors. Still, the strong reaction by business leaders was surprising. Indiana Chamber of Commerce President Kevin Brinegar called the different property tax caps for homeowners and businesses "deal breakers."

"We emphasized that point with the governor," Brinegar said. "We sent over our board-approved opposition to the circuit breakers to show that it wasn't just staff opposing this."

Daniels' decision doesn't sit well with the two most influential business lobbyists who also represent a wide swath of the state's industry. Kiely and Brinegar find it hard to fathom how Daniels, an ex-Lilly executive with strong business ties, would put it to them this way.

That Daniels knew of their displeasure makes it worse.