Indy Standard

Indiana House Republicans have introduced an amendment to Senate Bill 1 aimed at delivering property tax relief and instituting long-term reforms. The amendment, announced on April 4, 2025, is designed to save Hoosier homeowners a total of $1.1 billion over the next three years, using a combination of credits and reforms. It is expected that the majority of Hoosiers will pay less in property taxes in 2026 compared to 2025, with nearly all residents experiencing some form of 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,” stated 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."

Key components of the amendment include a 7.5% property tax credit up to $200 starting in 2026, along with additional credits for fixed-income seniors and disabled veterans. The amendment also supports increased property tax deductions by 2031 for various property types and lowers farmland assessed values, projecting savings for farmers exceeding $140 million over three years.

The reformative aspects of the amendment are designed to protect taxpayers by implementing controls to manage local government debt and reducing dependency on property taxes. Requirements for holding referenda during general elections are included to align with higher voter turnout and to increase transparency regarding tax impacts. Additionally, a Property Tax Transparency Portal will allow taxpayers to compare their current and prospective tax rates.

"Under this amendment, nearly all Hoosiers are going to see property tax relief," said State Rep. Jeff Thompson (R-Lizton), the 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 discussed in the House Ways and Means Committee on Monday, April 7. More details on Senate Bill 1 are available on the Indiana General Assembly’s website, with the legislative session set to conclude by April 29.