Why I voted NO on the Property Tax Bill

Indiana’s local income taxes may increase by $1.1 billion each year.

Dear neighbor,

Late last week, the majority party advanced Senate Bill 1—their proposal for property tax relief. Homeowners across the state have seen their assessed values rise sharply, with some facing bills that have doubled or even tripled. I had hoped this bill would provide meaningful relief to address those steep increases. Unfortunately, the updated version of Senate Bill 1, which passed the House on Thursday, does more harm than good. Here are the reasons I voted NO:

Nominal Property Tax Relief with a Significant Income Tax Increase

• 67% of homeowners will see some limited savings on their property tax bill, with a maximum credit of $300. These savings will be cancelled out with likely local income tax increases, and some homeowners will get no money off their property tax bill but see a local income tax increase.

• Local income taxes will potentially increase by $1.1 billion each year. Counties can impose a local income tax of 2.9%, and cities and towns can impose a rate of 1.2% within that 2.9%.

• Young and lower-income individuals will be adversely impacted since they may not own a home but could see increases in their income tax.

Slashes Local Funding

• Local governments will lose $1.4 billion. Police, fire, EMS, public libraries and other locally funded services will have their budgets gutted.

• Marion County will lose $75.7 million by 2028.

• Public schools will lose $744.4 million by 2028. The dollars they do get will be shared with charters in our school districts.

• IPS will lose almost $14 million over the next three years and an additional $92 million in revenue sharing with charter schools between 2028 and 2032.

• MSD Washington Township will lose over $13 million and MSD Lawrence Township will lose close to $3 million over the next three years.

• Schools won’t get a share of local income taxes, so they’ll be unable to recover the property tax revenue they’ll lose.

Businesses, Not Homeowner’s are the Winners

• Businesses receive massive property tax cuts since they’ll now be exempt from taxes on their equipment. Businesses also don’t pay local income taxes. Homeowners’ bills will cover the cost for big businesses.

Renters, First-time Home Buyers and Disabled Veterans are Left Out

• No savings for renters or first-time homebuyers.

• The bill phases out significant deductions that are currently in law for disabled veterans.

Along with House Democrats, I supported several proposals to improve the bill. The goal was to provide as many homeowners with relief as possible while preserving local services. All of our proposals, including those listed below, were voted down.

Here’s a side-by-side comparison of the two plans:

While the majority party wastes hundreds of millions of dollars on vouchers for the wealthy, virtual school fraud, charter school fraud and waste, luxury tax payer funded vehicles, no-bid contracts to campaign donors, and more, they are unable to make the tough decisions to help property tax payers. Instead, they are shifting the burden to our local governments and schools. Hoosiers need real relief, and SB 1 doesn't provide that relief.

The Senate has filed a motion to agree with the changes, so the bill will likely head to Gov. Mike Braun to sign or veto soon. I will continue fighting for real property tax relief and for the needs of our public schools, police, fire and EMS.

As always, please reach out to my office at h87@iga.in.gov with any questions, comments or concerns.

In service,