State Rep. Beau Baird has affirmed his support for Senate Enrolled Act 1, a significant legislative measure that offers property tax relief to Hoosier homeowners and establishes long-term reforms. This new law promises a $1.3 billion reduction in property taxes for homeowners over the next three years, with two-thirds expected to see lower bills in 2026 compared to 2025.
“We heard directly from Hoosiers who were struggling with rising property taxes,” Baird stated. “SEA 1 takes meaningful steps to provide relief to homeowners, farmers, veterans, and fixed-income seniors, as well as create a better system for taxpayers long-term.”
SEA 1 includes several measures for property tax relief:
– A 10% property tax credit, capped at $300, will be available for all homesteads beginning in 2026.
– Additional credits are available: $150 for fixed-income seniors and up to $400 for disabled veterans, with $150 and $250 stackable credits for those who qualify.
– The act also exempts more small businesses from paying the business personal property tax.
– Farmers are projected to save approximately $125 million over the next three years.
The legislation also advances long-term changes, such as reducing the local income tax cap from 3.75% to 2.9%, cutting $1.9 billion. It introduces stricter controls over local government debt of $54.3 billion, mandates general election referenda for increased voter turnout and transparency regarding tax impact, and establishes a Property Tax Transparency Portal for taxpayers to compare current and proposed tax rates.
Additional information about the ongoing legislative session, which is set to conclude by April 29, can be found at iga.in.gov.
