Indy Standard

Allen County legislators have announced that Senate Enrolled Act 1, which presents significant amendments for property tax relief, has been enacted into law. The new law is expected to provide a total of $1.3 billion in savings over the next three years, benefiting two-thirds of Hoosier homeowners with lower property tax bills in 2026 compared to 2025.

State Rep. Dave Heine, a member of the House Ways and Means Committee, emphasized the importance of this legislation, stating, "This legislation delivers property tax relief to Hoosiers, especially in our rural communities where every dollar counts. It's about supporting local homeowners and others who have been feeling the impact of rising property taxes."

The key initiatives under SEA 1 include a 10% property tax credit up to $300 on homestead property tax bills starting in 2026, additional credits for fixed-income seniors, and veterans. Furthermore, the act exempts more smaller businesses from business personal property tax and provides $125 million in savings for farmers over the next three years.

Long-term reforms introduced by the act consist of a reduction in the cap on local income taxes from 3.75% to 2.9% and stronger measures to control local government debt. Additionally, it requires referenda to be held during general elections to enhance transparency and creates a Property Tax Transparency Portal.

State Rep. Chris Judy stated, "Under Senate Enrolled Act 1, Hoosier families will see short-term and long-term relief on their property taxes. It's a strong step forward that benefits taxpayers today and helps secure long-term savings for the future, while also ensuring disabled veterans and seniors receive additional property tax relief. We're standing up for those who need assistance the most."

State Rep. Bob Morris added, "This is a strong commonsense win for homeowners that offers real savings now and ensures lasting benefits into the future."

Follow more updates on the legislative session at iga.in.gov.