Indy Standard

Northeast Indiana legislators have supported Senate Enrolled Act 1, a significant legislative package aimed at providing property tax relief for Hoosier homeowners while implementing long-term reforms. With the signing of SEA 1 into law, Indiana residents stand to benefit from combined credits and reforms projected to save $1.3 billion in property taxes over the next three years.

According to the act, approximately two-thirds of Hoosiers will experience lower property tax bills in 2026 compared to 2025. "This legislation brings relief to property owners and puts the taxpayers' money back where it belongs, in their pocket," stated State Rep. Ben Smaltz (R-Auburn), a member of the House Ways and Means Committee. "It's a positive step toward helping homeowners today and in the future, while still delivering the services they want and need."

Key measures of SEA 1 include a 10% property tax credit, capped at $300, for homestead property tax bills starting in 2026. Additional credits up to $400 are available for disabled veterans, with specific provisions for seniors with fixed incomes. It also eases the financial burden on Indiana farmers and exempts more small businesses from paying business personal property taxes.

Long-term reforms within the legislation involve reducing the cap on local income taxes from 3.75% to 2.9%, introducing stronger debt control on local governments' $54.3 billion, and mandating referenda during general elections to enhance voter participation. Additionally, a new Property Tax Transparency Portal will enable taxpayers to compare current and proposed tax rates.

"Senate Enrolled Act 1 is a win for our communities by bringing additional property tax relief and more transparency to the system," added State Rep. David Abbott (R-Rome City). "It will help homeowners, farmers and small business owners in the short term and bring needed reforms long term."

State Rep. Tony Isa (R-Angola) noted, "Hoosier families have been struggling with rising property taxes and relief is coming. This legislation brings real savings to nearly every Hoosier in the state."

The legislative session must conclude by April 29. More information can be accessed at iga.in.gov.