Indiana House Republicans Propose $1.1 Billion Property Tax Relief Plan

Indiana House Republicans have advanced a significant property tax reform plan, embodied in an amendment to Senate Bill 1, projected to save homeowners $1.1 billion over three years. The proposal allows counties to increase local income taxes and cities to implement their own income taxes for the first time, while phasing out the business personal property tax by 2030. Key features include a 7.5% property tax credit for homesteads starting in 2026, additional credits for seniors and disabled veterans, and increased deductions for farmers. These measures aim to alleviate the rising tax burden faced by Hoosiers amidst ongoing debates and criticisms regarding local government funding and fiscal foresight. House Speaker Todd Huston and committee chair Rep. Jeff Thompson emphasized the need for more transparency and accountability in local spending. The full plan's details are still pending a fiscal analysis and further discussions with the governor's office.