Ind. Senate begins work on tax bills

INDIANAPOLIS – An Indiana Senate Committee has gotten a jump start on discussing bills on unemployment taxes and property tax caps and plans to vote on the legislation next week.

One bill heard Tuesday would delay unemployment tax increases on businesses from this January until January 2011. Senate Republicans say the delay is needed because the tax increase would hurt businesses that are struggling with the bad economy.

Indiana is among 24 states using interest-free federal loans to balance unemployment insurance programs.

The Senate Tax and Fiscal Policy Committee also discussed a resolution that could ultimately put caps on property tax bills into the state constitution. Most Republicans favor the resolution, but some Democrats say the caps are hurting local governments and schools.