INDIANAPOLIS — An amended version of Senate Bill 1 was approved by the Indiana House on Thursday.
The bill is what Governor Mike Braun refers to as the "historic property tax relief" plan for Indiana.
Amendment 26 was approved by a vote of 65-29, with Republicans estimating it could save Hoosier families $1.1 billion in property taxes over the next three years. Property tax owners could save roughly $200-$250 on their future tax bills, a relief that would come in 2026. The bill now heads back to the Senate for a final vote.
Governor Braun, who made property tax relief a cornerstone of his campaign, encouraged the Senate to act swiftly on the bill: "I urge the Senate to take action quickly to get it to my desk for signature."
Despite the proposed financial relief, public safety stakeholders and parents of public school students have expressed concerns regarding certain provisions included in the legislation.
Democrats argue that counties will have to raise taxes to make up the difference.
State Rep. Cherrish Pryor (D-Indianapolis) issued the following statement after voting "no" on SB 1:
“People in my community want a true decrease in their taxes, not a decrease in property taxes that is cancelled out by increased income taxes. Marion County stands to lose $75 million under the current version of SB 1. In order for our community to fund essential public services like police, fire and EMS, as well as public schools for our kids, they will be forced to find the funding elsewhere.
This proposal is nothing but smoke and mirrors. Republicans in the legislature can run around touting that they have saved Hoosiers $300 on property taxes and then turn around to the local governments and force them to play the villain by raising local income taxes by $300 to keep functioning. They have managed to save Hoosier taxpayers very little while passing off responsibility to local governments.
I know this is not the best we can do for Hoosiers. This proposal is not a collaborative solution to help taxpayers around the state. We need to help our seniors stay in their homes while not cutting their access to emergency medical services. We need to help working parents keep a roof over their children’s head while not reducing the quality of their children’s education.
I am disappointed in the lack of action on the part of the legislature in helping Hoosier taxpayers get real relief.”
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