(Statehouse) – State lawmakers have approved a plan for property tax relief, although it’s a scaled-down version.
Among the provisions retained in the bill are relief for homeowners over age 65 and disabled veterans. It also contains a first-time homebuyer tax credit that would last up to five years for homebuyers whose income is less than $75,000 for a home that is worth less than $250,000.
The bill freezes local property tax operating fund levies for property taxes paid in calendar year 2026, then imposes a 1% growth cap in 2027 and a 2% growth cap in 2028. Starting in 2029, SB 1 implements a new levy growth formula intended to limit big year-to-year swings in levy growth.
Finally, SB 1 institutes a one-year “cooling off” period for capital project referendums, so taxpayers can see one year of savings on their property tax bills before deciding whether to approve a new referendum. It also requires all referendums to occur during November general elections when turnout is highest.
Many local governments were concerned about the bill because of how it would impact local revenues which provide funding for basic services such as public safety.
Under the scaled-down version, the total loss of revenue to local governments is now $687 million over three years. The original version offered up by Gov. Mike Braun (R) would have cost about $1.6 billion.
The bill passed the State Senate Tax and Fiscal Policy Committee 10-3. All the committee’s Republicans who were present for the meeting voted for it. Three of the four Democrats on the committee voted against it.
(Story by Network Indiana)
