property tax down; sales tax up; net gain but modest...

From Lesley Stedman Weidenbener with the lead story in this morning's C-J...

The tough thing is that the benefits of the property tax decrease are concentrated and thus more obvious-- in comparison to the diffuse cost of a higher sales tax. But on net, taxes have been cut.

More than three-quarters of Indiana homeowners should enjoy a net tax savings of at least $50 under a recently passed tax restructuring law, according to a new analysis by Larry DeBoer, a Purdue University economist.

Some could save even more. DeBoer's analysis estimates the median Hoosier homeowner -- with a total household income of $55,634 and a home worth $120,700 -- will pay about $149 less in total annual taxes under the law.

But renters will pay more under the law, according to the report from DeBoer, who also works as an adviser to the nonpartisan Legislative Services Agency....

The next part is (hopefully) based on a more sophisticated analysis. It is relatively difficult to measure the indirect impact of lower property taxes on rent in a competitive market.

The analysis found, however, that the median renter -- with a total household income of nearly $25,000 -- would pay an estimated $69 more annually. That's primarily because renters don't directly benefit from the property tax cut.

"In the long run, rents might be lower because of property tax cuts received by rental-housing owners," DeBoer said in the report. "Research suggests that this probably would not be enough to offset the added sales taxes, though."