House committee kicks off debate over property tax reform in second half of session

Debate over property tax reform began in the second half of the legislative session Wednesday the same way it ended the first half – with local government leaders sounding the alarm on their budgets, while Gov. Mike Braun’s office pressed for taxpayer relief.

The current version of SB 1, the Senate Republicans’ version, is focused on relief for older Hoosiers, disabled veterans and first-time homebuyers. Braun’s proposal would’ve provided significant relief for homeowners across the board.

Jason Johnson, Braun's deputy chief of staff, said taxpayers must be front of mind.

“The governor’s been transparent and consistent in every conversation he’s had on the issue for over a year: Government should not grow faster than the taxpayers’ ability to pay for it,” Johnson said.

Braun’s plan would’ve cost local governments and schools billions of dollars a year. The current bill doesn’t go as far — the relief, and therefore the funding loss, totals $1.4 billion over the first three years — but Knox County Commissioner Kellie Streeter said it still puts local governments on a path that harms taxpayers.

“I personally reviewed my general fund operating budget for '25 and 79 percent of my county general [fund] goes to the judiciary and law enforcement,” Streeter said. “Let me be clear: That’s $4 of every $5.”

Local government leaders said the measure will force cuts to services and personnel.

School leaders say SB 1 is part of a perfect storm that is squeezing school budgets on all sides.
 

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Braun has said local governments and schools have received a windfall in recent years because of big spikes in property taxes.

But Mooresville Consolidated School Corporation Superintendent Jake Allen said schools are dealing with the same inflation issues that everyone else is.

“With the rising cost of buses, transportation, fuel, insurance — it’s just outpacing what we’re getting from our local level,” Allen said.

But Maggie McShane, with the Indiana Realtors Association, said homeowners need relief.

“Our homeowners that we represent are also concerned about the cost of transportation, the cost of insurance — homeowners insurance — and the cost of their utilities,” McShane said. “And that’s why we’re here today taking a look at this; it’s why you all are hearing about that.”

The House will work on the bill over the coming weeks.
 

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.