Governor Mike Brown has signed the Senate Bill 1, the bill on the property tax reform, in law on Tuesday, after the Senate gave the final approval of the bill after the amendments to the Chamber.
When voting on a late night, the Indiana Senate approved a bill on property tax, which will save two -thirds of taxpayers to $ 300 for their property tax in 2026, while local authorities and schools will lose more than $ 1.4 billion to 2028.
Brown, who held a property tax relief campaign, issued a statement after the Senate approved the bill called it a “historical” property reduction plan for most Hoosier housing owners, while limiting future tax increases and making the tax system more straight and more creepy.
“The relief of real estate tax was a major promise of my freedom and opportunity program, and with the joint guidance of our legislators, we provide real savings and protection for taxpayers,” Brown says in the statement.
The report on the fiscal impact of legislative services shows that will reduce over $ 1.4 billion in the country between 2026 and 2028, including $ 744 million from schools, $ 61 million from libraries, $ 451 million from cities and cities and $ 403 million from the counties. In Lake County, this amounts to $ 235 million abbreviations to schools and government units over the next three years, while Porter County will observe a loss of $ 49.6 million.
The Senate adopted the Senate Bill 1 with 27-22 votes, with 12 Republicans joining all Democrats to vote against the bill. Senator Dan Dernulk, R-Highland, voted against the bill; Senator Ed Charbon, R-Valparaiso, voted in favor of the bill. Senator Rick Nimer, R-Lowell, was excused.
The Senate Bill 1, which was renamed the Local Government Financing Bill, was first introduced in the Senate to include the language and formula of the ownership tax relief that Brown held a campaign. The Senate has changed the bill to remove this language but includes other relief provisions
When the bill was sent to the Chamber, the ways and funds of the President Jeffrey Thompson, R-Lizton, undress the bill and put a language from its bill on its home 1402. In the end to share reference funds with the regions of submission.
Thompson has proposed a change in six pages appointed for amendment 36 last week, which will lead to $ 1.2 billion in relief of ownership tax for 3 years, which will be achieved through a change that displaces the standard deduction loan of up to 10% or not more than $ 300, he said.
“Two-thirds of homeowners in 2026 will receive a bill less than they received in 2025,” says Senator Travis Holdman, R-Markle.
The Holdman, who is the author of the Senate, was 1, overcome other elements included in the Senate Bill 1, which includes a referendum for a school, which will be held during the general election, and a one-year “cooling period” after the payment of a referendum project has removed 30% on the floor for a business personal tax and the ownership tax for these 65 years and more.
The local income tax starting in 2028 will decrease from 3.75% to 2.9%, Holdman said. 2.9% should be allocated as follows: 1.2% for the total revenue of the county, 0.4% for EMS and fire services and 0.2% for cities and libraries, he said.
“I Think There are Expenses That Cities and Towns and County Goverments Have Thaty Could Trim Their Budgets. We’ve found in State Government and at the Federal Level there is a LO. Utilized.
If local officials realize that they need their current level of funding, Holdman said they could raise their local income tax. But Holdman also advised this.
“Just because you do not receive so much property tax does not mean that you have to fill all this with income tax. You have the opportunity to become more efficient and reduce your budgets and do what you need to do to deal with less,” Holdman said.
Senator Fadi Kadura, D-Indianapolis said that schools and local authorities using dollars for ownership tax for services such as fire, police, public works and others will see a $ 1.4 billion discount.
Holdman disagreed with this feature. He said the local authorities will still receive an increase in funds from the year to 2028, but they will not receive the same amount in tax dollars if the property tax system remains the same.
“They will not lose money from one year to the next. They will not receive as much money as they would have under the current legislation, but a large, large majority of schools and municipal governments and counties will receive more in 2026 than in 2025, more in 2027 and more in 2028,” Holdman said.
Senator Rodney Paul, D-Chespterton, said that while the Senate Bill 1 does not say that local authorities should increase the income tax, it will force local authorities to find other ways to finance basic services.
“You put them between a rock and a difficult place,” said Paul.
The Senate Bill 1 has “multiple poison pills” in it, Paul said, and will force local authorities and schools to make difficult decisions “at a time when things are just uncertain as they are.”
“We forced too much in a bill,” Paul said.
Senator Andrea Hunley, D-Indianapolis, said he would like the part of the Senate 518 bill of the bill to be collected because “making money from one of our systems, which is under-funded and provides it to another system that is under-funded is not a way of financing.
Senator Linda Rogers, R-Granger, said the part of the Senate 518 bill of the bill was “significantly” cut in the Senate Bill 1, and the sharing of funds begins by 2028.
“That’s fair. The money follows the student,” Rogers said.
Senator Shelley Yoder, D-Bloomington, said that while the relief of property tax is a worthy goal, the Senate bill 1 does not provide relief, but offers a “mixed bag”.
“She is dressed as a rescue line, but will drag our communities under,” Yoder said. “What we started as a bill with to provide relief in the fight against the Husheir has become a disaster for the communities.”
Holdman said the senators should “take a deep breath.”
“We need to realize that two-thirds of our homeowners will pay less in 2026 than in 2025,” Holdman said. “Many of the provisions of this bill do not come into force for two more years, so we have time to find any amendments if we find that it needs it.”
akukulka@post- trib.com