Property tax caps in Indiana will collectively save homeowners almost half a billion dollars in 2010, but not everyone believes its in the state's best interest, or theirs.

Caps would leave fewer dollars for local government, farmers, and business owners. Those groups joined forces at the Statehouse this week to put the brakes on an attempt to make property tax caps a permanent part of the state constitution.

"To put it in the constitution right now is just irresponsible," said Mayor Michael Fincher of Logansport.

Right now, Fincher and his city council are working to cut $4.6 million out of a $10 million budget. If property tax caps become permanent, he says homeowners will end up paying the difference in other ways:

"New taxes will have to be implemented like local option income taxes and those kinds of things to offset the cost to revenue," Fincher said.

This week, the Indiana Senate is expected to pass the constitutional measure on to the House. If both chambers pass identical versions of the constitutional tax cap idea, the voters will decide its fate.

The Indiana Farm Bureau is pushing hard to get legislators to consider new tax cap laws. Current caps have already caused their tax liability to go up significantly on especially buildings and machinery.

Wednesday, hundreds of farmers and dozens of legislators ate lunch and discussed what tax caps are doing to their bottom lines.

Republican Senator Brandt Hershman who favors permanent tax caps and farmer Kevin Underwood who is opposed to them sat at the same lunch table at the Westin Hotel in downtown Indianapolis. Both are from Tippecanoe County.

"Our tax amount the past two years has gone up somewhere around 10 to 15% per year the last two years," Underwood said.

Senator Hershman says those kind of increases would not last forever if tax caps become part of the state constitution.

"I am excited about property tax caps because they will provide more certainty for homeowners and for businesses. We would be the only state in the nation that has any sort of tax caps for business and for agriculture," said Hershman.

Experts say there is wide support for passage in the Senate, however, its future in the House is much less certain.