Indiana lawmakers discuss property tax relief proposals, local officials express concerns

Frustrations have risen among Indiana officials regarding the state's proposed property tax relief plan, which local leaders fear could significantly cut municipal revenues. Governor Mike Braun's plan, outlined in Senate Bill 1, aims to cap annual property tax increases at 3%, with a lower cap of 2% for certain vulnerable groups such as seniors and low-income households. The proposal also includes raising the homestead deduction for homes valued under $125,000 and establishing a property tax transparency portal by 2026. Lawmakers are under pressure to amend the bill while balancing local budget needs with tax relief promises, as local government officials express concerns about maintaining essential services. Governor Braun's administration emphasizes the need for local units to also tighten their budgets as part of the tax reform effort. The Senate Tax and Fiscal Policy Committee is expected to continue discussions and consider amendments in the coming weeks.