INDIANAPOLIS — Indiana republican lawmakers have announced that revisions to the property tax relief bill, now known as Senate Bill 1, will result in an estimated savings of $1.1 billion for Hoosiers over the next three years. The bill has undergone significant changes, including a more than 360-page amendment, and is currently headed to the full House for further consideration.
Despite the proposed financial relief, public safety stakeholders and parents of public school students have expressed concerns regarding certain provisions included in the legislation. Notably, portions of Senate Bill 518, which requires public schools to share property tax dollars with charter schools, have been integrated into the bill, leaving some parents dissatisfied.
“The only place where funding public schools is a partisan issue is here at the statehouse," Kelly Mosesso, an IPS parent said. "The people in the county where I grew up my teachers, my friends, my parents, who are conservative people—they want their schools fully funded just like we do here in Indianapolis.”
Senate Bill 1 now favors tax credits over deductions for homestead property tax bills and provides additional options for seniors and disabled veterans regarding deductions. However, the absence of a fiscal analysis means the projected savings figures are based on the lawmakers’ estimates.
Rep. Jeff Thompson the chairman of the Ways and Means Committee, said during the committee on Monday that all property owners are likely to see some savings.
“What are the effects of this right now," Danny Brock the Avon fire chief asked. " There is a lot of we think, we believe, we hope, we believe there is a lot of non-finite words being used for the changes that are being made."
While the Avon Fire Department is uncertain about how the legislation will impact his department's operations, the Danville Fire Chief Rick Duncan fears that his department may face severe cutbacks.
“I’m gonna have to close a firehouse," Duncan said. "You are going to see in Hendricks County layoffs from other fire departments."
The new legislation caps fire territory property tax increases at 40 cents for every $100 of assessed value, a change Duncan claims will devastate his department's budget.
“We are essentially going backwards," Duncan added. " I am going to have to go back and refigure the budget for next year because I don’t know how we are going to operate.”
All eight Democrats on the committee voted against the bill, arguing that it remains far from what Governor Mike Braun has advocated.
"It's not what he wants, it's not what he ran on, and I don't think it's landed where he wants it,” said Rep. Greg Porter (D-Indianapolis).
Senate Bill 1 also introduces a property tax deferral program that allows counties to raise their local income tax rate to a maximum of 2.9 percent. As discussions continue, the bill’s future remains uncertain as it moves through the legislative process.
