Indy Standard

Legislation aimed at reducing property taxes has been signed into law, promising to save Indiana homeowners $1.3 billion over the next three years. Senate Enrolled Act 1 offers a comprehensive package designed to provide tax relief to homeowners, farmers, and taxpayers across the region. It is expected that two-thirds of residents will experience a lower property tax bill next year, with further savings in subsequent years.

Property taxes, which fund local government operations such as schools, libraries, and fire protections, have seen substantial increases. This legislation seeks to alleviate some of the burden these increases have posed. Rep. Kendell Culp noted, "Property tax relief measures include a 10% property tax credit up to $300 on all homestead property tax bills beginning in 2026." The act also introduces a phased-in two-thirds tax deduction for homesteads and a new one-third deduction for other residential properties and farmland. Additionally, it offers a $150 credit for seniors on a fixed income and exempts more small businesses from the business personal property tax.

Long-term reforms included in the legislation target increased transparency and accountability in local government spending and impose stronger controls on local government debt. The measures are intended to rein in the $54.3 billion in local debt while reducing the local income tax burden. A new Property Tax Transparency Portal will enable taxpayers to compare their current tax bills with proposed changes.

Rep. Culp emphasized the importance of distributing the cost of local services more broadly and expressed his commitment to further supporting Indiana's farmers, who represent the state's largest industry. Constituents may reach out to his office with any inquiries.