INDIANAPOLIS — Governor Braun has officially signed a new property tax relief bill following a narrow Senate vote of 27-22, which took place during a late-night session at the Statehouse.
The legislation is expected to provide financial relief, with an estimated savings of $1.3 billion for property owners across Indiana.
Governor Mike Braun released the following statement on Senate Bill 1:
"This is historic property tax relief. Senate Bill 1 cuts property taxes for most Hoosier homeowners, farmers, and businesses, limits future tax hikes, and makes the tax system fairer, more transparent, and easier to understand. "Real property tax relief was a core promise of my Freedom and Opportunity Agenda and with the collaborative leadership of our legislators, we are delivering real savings and protections for taxpayers. I look forward to signing the bill as soon as I receive it."
Senate Republicans claim that approximately two-thirds of homeowners will see a reduction in their property tax bills starting next year. The new plan also includes a temporary reform of the tax formula for farmland, anticipated to save farmers around $116 million over the next two years. Additionally, it makes property tax exemptions for small businesses with limited amounts of property.
However, the bill has not gone without opposition. Critics raised their concerns ahead of the overnight Senate vote, with public school supporters and library advocates voicing their objections.
WATCH | Hundreds really at the statehouse against Senate Bill 1 affecting education and libraries
Leaders from Indianapolis Public Schools warned that if the tax plan is enacted, the district could face a staggering $96 million loss between now and 2032. They indicated this could result in the closure of 20 to 25 school buildings, significantly impacting thousands of students and parents due to potential transportation issues.
Libraries also expressed alarm, stating that the measure could adversely affect their budgets and the resources available to Hoosiers.
The concerns echoed throughout the session, with mayors from various cities highlighting what a decline in property tax revenue could mean for essential services provided to residents.
State Rep. Gregory W. Porter (D-Indianapolis) criticized the move, stating that "Braun made a campaign promise he can’t keep. Indiana Republicans want to shift the blame for taxation to local communities. Local services will suffer from massive cuts. The majority party dukes it out over who provided the bigger 'tax cut,' and all Hoosiers and our communities lose in the process."
As the bill takes effect, its impact on local services and institutions remains a pressing concern for many Hoosiers, making the future of community funding and public support uncertain.
