INDIANAPOLIS (WISH) — Indiana House Republicans on Friday said they’ve introduced an amended property tax proposal aimed at providing relief to homeowners.
Republicans said a planned amendment to Senate Bill 1 could save Hoosier homeowners $1.1 billion in property taxes over the next three years, with most seeing reduced taxes in 2026.
A vote on the amendment is set for 10:30 a.m. Monday in the House Ways and Means Committee. The meeting will be in Room 404 of the Statehouse.
The proposal does not reset property tax rates to 2021 levels, as Republican Gov. Mike Braun wanted.
The proposal includes a 7.5% tax credit on Homestead property tax bills up to $200, along with additional credits for older Hoosiers on fixed incomes and for disabled veterans.
Additionally, there will be a new, two-thirds property tax deduction for homeowners by 2031, and a one-third deduction for non-Homestead residential properties and farmers that same year.
House Speaker Todd Huston said during a Friday afternoon news conference at the Statehouse, “This is a much more transparent system because we are moving from a rate-based to a levy-based system.”
House Ways and Means Committee Chair Rep. Jeff Thompson, R-Lizton, said up to 94% of homeowners could see savings under the proposal. It also aims to reform the property tax system to increase transparency and predictability for taxpayers.
If the full House approves the proposal, it will return to the Senate, where differences between the House and Senate versions may lead to a conference committee.
News release
“STATEHOUSE (April 4, 2025) – Indiana House Republicans today released their amendment to Senate Bill 1 to deliver property tax relief and long-term reform.
“Through a combination of credits and reforms, Hoosier homeowners will save $1.1 billion in property taxes over the next three years. Under the amendment, a majority of Hoosiers will pay less property tax in 2026 than 2025 and nearly all Hoosiers will see relief.
“‘Many Hoosiers have been hit hard by rising property taxes and today we’re announcing more than $1 billion in property tax relief and reforms,’ said House Speaker Todd Huston (R-Fishers). ‘Our amendment delivers meaningful property tax relief to homeowners and reforms the property tax system long-term to increase transparency and predictability for Hoosiers. We’re continuing to work closely with our partners in the Senate and the Governor’s office to deliver relief for Hoosiers.’
“Providing Property Tax Relief to Hoosier Homeowners and Farmers
“In addition to relief, the amendment to SB 1 reforms the property tax system to protect taxpayers, rein in local government debt and reduce reliance on property taxes.
“Reforming the Property Tax System to Protect Taxpayers
- Puts stronger controls in place to rein in the $54.3 billion in local government debt.
- Reduces local government reliance on property taxes and restores accountability in local government spending.
- Requires referenda to be held during general electionsto align with higher voter turnout and increase transparency of referenda questions to better note the tax impact.
- Creates a Property Tax Transparency Portal to allow taxpayers to compare their current tax bill with proposed tax rate changes.
“‘Under this amendment, nearly all Hoosiers are going to see property tax relief,’ said State Rep. Jeff Thompson (R-Lizton), chair of the House Ways and Means Committee. ‘We’re able to do this while moving to a better system that enables communities to invest in their priorities in a much more transparent and fair way for taxpayers.’
“The amendment to Senate Bill 1 will be heard by the House Ways and Means Committee at 10:30 a.m. Monday, April 7.
“More information on Senate Bill 1 is available here. Visit iga.in.gov to follow the legislative session, which must conclude by April 29.”
Indiana House Republicans news release issued 4:13 p.m. April 4, 2025
Statements
“I appreciate the work the House majority has done on property taxes, but this plan is far from a solution. Big businesses are still the winners, not homeowners, since they’ll eventually get a cut of $1 billion. It fails to address that homestead assessments are increasing more than commercial assessments and that our homeowners are paying a bigger portion of property tax revenue each year.
“With roughly $1.1 billion saved over three years and about 1.9 million homesteads, each homeowner will save an average of close to $575 from 2026 to 2028. Our plan would save every homeowner $500 in just 2026. With an average property tax bill ranging from $1500 to $3000, a yearly credit of only $200 will fail to make a difference. The first-time homebuyer’s credit was eliminated, and there’s no significant relief for seniors, veterans or renters.
“Our schools will lose money, especially with Senate Bill 518 rolled into the plan diverting property tax dollars to charter schools so the state can pay even less. This plan encourages local governments to raise their local income tax rate, so you’ll get more money in your right pocket but have to pay more out of your left.
“Yesterday, the stock market lost close to $3.1 trillion– the steepest decline since Covid-19. We’re potentially headed into a recession, so every dollar in Hoosiers’ pockets makes a difference.”
Rep. Gregory W. Porter, D-Indianapolis
“Senate Republicans made enacting meaningful property tax relief our top agenda item this session because we understand how important it is to Hoosiers. We appreciate working with the governor and our partners in the House of Representatives who share this goal and with whom we communicate regularly as we pursue the right policy for Indiana. Just like Hoosiers tighten their belts when they need to, so too must our local governments. I am optimistic about the future of this legislation and look forward to continued collaboration.”
Senate President Pro Tem Rodric Bray, R-Martinsville
“The discussion around tax reform in Indiana has been ongoing for two years by way of the State and Local Tax Review Task Force. As we narrow in on how to cut property taxes for Hoosiers, we are ever mindful that we must walk a fine line so we are fair to our hardworking taxpayers, and our schools and local governments. It is my hope that we, in partnership with the House of Representatives and governor, land on a thoughtful approach for property tax relief and begin to work our way toward a rate-based system.”
Sen. Travis Holdman, R-Markle
