Elkhart County legislators have backed Senate Enrolled Act 1, which has been signed into law, introducing substantial property tax relief measures and long-term reforms for Hoosier homeowners. State legislators anticipate that the law will provide $1.3 billion in property tax savings over the next three years. An estimated two-thirds of Hoosier homeowners are expected to benefit from lower property tax bills in 2026 compared to 2025.
State Representative David Abbott described Senate Enrolled Act 1 as beneficial for local communities, stating, “Senate Enrolled Act 1 is a win for our communities by bringing additional property tax relief and more transparency to the system,” and emphasized the aid it would provide to homeowners, farmers, and small businesses.
State Representative Joanna King highlighted the importance of the law, saying, “This comprehensive law helps Hoosiers by easing rising property tax burdens and delivering lasting reforms. This marks a significant win for homeowners and taxpayers, offering relief now and continued benefits in the future.”
The act includes multiple relief measures: a 10% property tax credit up to $300 for all homestead property tax bills starting in 2026, stackable credits of $150 for fixed-income seniors, an exemption for more small businesses from business personal property tax, and a savings provision for farmers estimated at $125 million over three years.
Furthermore, Senate Enrolled Act 1 incorporates long-term reforms. It reduces the cap on total local income taxes that local governments can collect from 3.75% to 2.9%, amounting to a $1.9 billion reduction. It also introduces stringent controls to manage the $54.3 billion local government debt. Additionally, the law mandates referenda during general elections for voter transparency and creates a Property Tax Transparency Portal to help taxpayers compare their current bills with proposed changes.
“Hoosiers have continued to shoulder the burden of rising property taxes in recent years,” said State Rep. Doug Miller, expressing optimism that the law will provide “much-needed relief.”
State Rep. Tim Wesco underlined the importance of controlling future tax increases, stating, “It’s important that we work to lower property taxes while putting stronger controls in place to prevent skyrocketing bills in the future. This is a significant step forward in providing financial relief for our residents.”
For more details, individuals are encouraged to follow the legislative session at iga.in.gov, which is scheduled to conclude by April 29.
