logo
Indiana property tax bill amended in House Ways and Means, advances to House

Indiana property tax bill amended in House Ways and Means, advances to House

Yahoo07-04-2025

The property relief bill was further amended to draw from components of three bills in the Indiana House Ways and Means committee Monday, which Democratic members voiced concern about and Republican members praised for its property tax relief.
A 368-page amendment to Senate Bill 1 was approved Monday. The amendment includes elements of the Senate amended Senate Bill 1, like allowing a county's fiscal body to set up a property tax deferment program, and Senate 518, which would require by 2027 that school corporations share referendum revenue with charter schools and by 2028 all school corporations begin sharing revenue from the school corporation's operations fund levy with charter schools.
Further, the amended Senate Bill 1 contains language from House Bill 1402, proposed by House Ways and Means committee chairman Jeff Thompson, which includes a 5-year phase-in of exemptions and deductions so that every parcel in the state hits the property tax cap.
The amended Senate Bill 1 states that the percentage cap used to determine the maximum levy growth quotient is 4% in 2026. Beginning in 2028, the maximum local income tax expenditure rate for all counties will be 2.9%, according to the amended bill.
Under the amended bill, approximately 93% of homeowners will see, on average, a decrease of $200 in their pay-2026 property tax bill, Thompson, R-Lizton, said.
Senate Bill 1 initially included language that Gov. Mike Braun campaigned on, a homestead standard deduction amount of 60% of the homestead's assessed value if the value is more than $125,000 or $48,000 plus 60% of the remaining assessed value if the homestead has an assessed value of $125,000 or less. That language was introduced in Senate Bill 1.
Braun's plan would cut $4.1 billion across the state between 2026 and 2028, including $1.9 billion from schools, $254 million from libraries, $890 million from cities and towns, and $765 million from counties.
The Senate amended Senate Bill 1 to remove Braun's language from the bill. The amended bill would shift the percentage cap used to determine the maximum levy growth quotient to 0% in 2026, 1% in 2027 and 2% in 2028; and allows a county fiscal body to establish a property tax payment deferral program, where up to $10,000 can be deferred and the deferment becomes a lien on the property.
The fiscal impact of the amended bill would cut $1.4 billion across the state between 2026 and 2025, including $370.9 million from schools, $67 million from libraries, $304.3 million from cities and towns, and $346.6 million from counties.
Last month, Thompson stripped Senate Bill 1 and inserted his House Bill 1402, which was not heard in committee in the first half of session.
Under Thompson's bill, phases down the homestead standard deduction over 5 years to 0 beginning for taxes due and payable in 2031; phases in an increase in the supplemental homestead deduction over 5 years to two this of the assessed value of the homestead; establishes a new local income tax expenditure tare for all counties to 2.9%; and phases in a total exemption for business personal property that is placed in service after Jan. 1, 2025.
The fiscal impact of Thompson's bill would cut $362.8 million across the state through 2028, including $76.7 million from counties, $147.2 million from cities and towns, $186.2 million from school corporations and $2.1 million from libraries.
Rep. Mike Andrade, D-Munster, said he had concerns with the amended bill because the local income tax change will negatively impact Lake County and because it prohibits the northern Indiana commuter transportation district – which runs in his district – from issuing new bonds after May 9 that are payable in whole or in part from amounts distributed from the commuter rail service fund.
'This is not in the perfect place that it needs to be,' Andrade said. 'It's concerning that we're shifting the burden still on local units of government while trying to give some relief to the homeowners.'
Rep. Ed DeLaney, D-Indianapolis, said the amended bill likely won't appeal to Gov. Braun because it goes 'nowhere near his goal' to lower property taxes. The Senate likely won't go for the bill, DeLaney said, because it amends its bill.
While he doesn't support school corporations sharing referendum dollars with charter schools, DeLaney said he does appreciate the charter school portion of the amended bill because it tones down the language in Senate Bill 518.
'I think we have a tough job getting this over the finish line,' DeLaney said.
Rep. Tonya Pfaff, D-Terre Haute, said while the legislature will be able to say that it decreased property taxes, the relief is only an average of $200 at the cost of funding police, fire, schools, library and other local services.
'To me, it's a wash,' Pfaff said.
Rep Chris Campbell, D-West Lafayette, said she opposed the bill because property taxes fund police, fire, schools and local municipal needs. Additionally, without a fiscal impact of the amendment, Campbell said she can't approve the amendment.
'Without a fiscal, we're asking this group of decision makers to write a blank check,' Campbell said. 'One size does not fit all.'
Rep. Danny Lopez, R-Carmel, said Thompson 'struck a great balance' in offering relief and ensuring municipalities still receive some funding.
'I know there's work that's left to be done. I appreciate your commitment to continue to work on this,' Lopez said.
Rep. J.D. Prescott, R-Union City, said he would 'like to see a lot more property tax relief across statewide for this.'
'This is not everything that I want from a property tax relief package, but a no vote would represent keeping the current law in place, with no relief; a yes vote does provide some relief,' Prescott said. 'I will vote yes because I think it's important that we provide relief moving forward. I will continue to push for more meaningful reforms in the future.'
Democratic members proposed five amendments, including a renter's deduction and local income tax match, which were voted down along party lines.
The amended bill passed in separate 15-8 votes, with all Republicans voting in favor and all Democrats voting against. The bill moves forward for consideration by the House.
akukulka@post-trib.com

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Republicans advance measure to ban noncitizens from voting in local DC elections
Republicans advance measure to ban noncitizens from voting in local DC elections

Yahoo

time15 minutes ago

  • Yahoo

Republicans advance measure to ban noncitizens from voting in local DC elections

WASHINGTON — The House advanced a bill to ban noncitizens from voting in local elections in Washington, D.C., marking the latest step from Republicans to crack down on city policies they view as too liberal. Lawmakers voted 268-148 largely along party lines to advance the measure, sending the bill over to the Republican-led Senate for consideration. The bill managed to garner some bipartisan support after 56 Democrats voted in favor. However, the legislation's future is uncertain as it would require seven Democrats to buck party leadership and support the proposal. 'The right to vote is a defining privilege of American citizenship,' House Oversight Committee Chairman James Comer, R-Ky., said in a speech on the House floor. 'Diluting that right by extending it to noncitizens — whether here legally or illegally — undermines the voice of D.C. residents.' The bill would overturn the Local Resident Voting Rights Amendment Act, a bill passed by the D.C. Council in 2022 that permits undocumented residents living in Washington to vote in local elections. City lawmakers have defended the measure by pointing to a 'long history of the U.S. allowing noncitizens to vote in local (or) state' elections. Lawmakers also note many of the undocumented residents pay local taxes, support businesses, and attend district schools — arguing that should qualify them to have a say in local elections. However, Republicans have argued that allowing noncitizens to vote in local elections sets a dangerous precedent that could negatively harm local governments. 'Some may wrongly dismiss these as local elections. The reality is local elections are a vital part of our democratic process and have a significant impact on communities,' Rep. August Pfluger, R-Texas, who led the bill in the House, said in a speech. 'Local elections determine matters such as taxation, the criminal code, and the election of city council members who create essential ordinances, including those that dictate voting rights.' Additionally, Republicans have criticized the law as a way to dilute 'the voice of American citizens.' 'It's also important to acknowledge that many local elections are decided by razor-thin margins underscoring their significance and importance of active participation,' Pfluger said. GOP lawmakers also cited opposition from D.C. Mayor Muriel Bowser, who withheld her signature from the ordinance but allowed it to take effect. 'Why would my colleagues on the other side of the aisle want foreigners to vote in local elections in Washington, D.C.? What's the purpose?' Pfluger said. 'Free and fair elections are prerequisites for the healthy republic our founding fathers envisioned, with the District of Columbia as the epicenter.' House Republicans passed a bill in 2023 seeking to repeal the D.C. law allowing noncitizens to vote. The bill was spearheaded by Republicans but 52 Democrats ultimately joined all Republicans in approving the bill despite efforts from Democratic leadership to quash the proposal. However, the legislation was never considered in the Senate, which was controlled by Democrats at the time. Despite not being a state, Washington is permitted to operate as an independent city government under the D.C. Home Rule Act. However, local laws are still subject to congressional approval before they can take effect, occasionally setting up showdowns between Congress and local lawmakers. The vote on Tuesday is the first of three bills being considered this week by the House to rein in some of D.C.'s local ordinances. Other proposals being considered would rescind D.C. Council policies allowing city employees to not comply with requests from the Department of Homeland Security or Immigration and Customs Enforcement.

Mikie Sherrill beats crowded field to become Democratic candidate for NJ governor
Mikie Sherrill beats crowded field to become Democratic candidate for NJ governor

New York Post

time16 minutes ago

  • New York Post

Mikie Sherrill beats crowded field to become Democratic candidate for NJ governor

US Rep. and former prosecutor and Navy helicopter pilot Mikie Sherrill will be the state's Democratic nominee for governor in November after defeating five Dem opponents in Tuesday's party primary. Sherrill, 53, a mother of four and four-term congresswoman representing parts of Essex, Morris and Passaic counties, garnered an early lead in pre-primary polling in large part because of her impressive resume, which included a stint as a federal prosecutor. She tallied 34.6% of the vote when the Associated Press projected her to win at 8:39 p.m. ET. Advertisement Rep. Mikie Sherrill has won New Jersey's Democratic primary for governor. AP Photo/Heather Khalifa Sherill of Montclair beat out Jersey City Mayor Steven Fulop, Newark Mayor Ras Baraka, US Rep. Josh Gottheimer, New Jersey Education Association union President Sean Spiller and former state Sen. Steve Sweeney for the nod. Fulop was netting 17.8% of the vote and Baraka, Gottheimer, Spiller and Sweeney all had less than 14% support when the race was called. Advertisement In addition to Sherill enjoying a solid polling lead heading into the primary, she also had won the support of much of the Garden State's Democratic Party apparatus. In Congress, Sherrill serves on the House Committee on Armed Services and its Select Committee on Strategic Competition between the United States and the Chinese Communist Party. She also is a member of caucuses including the Congressional Caucus for Women's Issues, the New Democrat Coalition and the Rare Disease Caucus. Her campaign centered around the affordability crisis in Jersey affecting everything from healthcare costs to grocery prices. She also regularly spoke out against the Trump administration as well as Elon Musk, accusing them of working to 'dismantle' social programs such as Social Security, Medicare and Medicaid. Sherrill pledged if elected as governor to work to lower prescription drug costs while requiring more transparency in healthcare pricing and directing the state's attorney general to go after practices such as price gouging, monopolies and insurers denying coverage. Advertisement Sherrill posing for photos with supporters at a 'Get Out the Vote' rally in Elizabeth on June 7, 2025. AP Photo/Heather Khalifa She also champions shared services for municipalities and school districts to help spread some of the cost around in an effort to lower property taxes and supports the expansion of the state's Child Tax Credit and Earned Income Tax Credit. The New Jersey gubernatorial election is scheduled for Nov. 4.

Rep. Mikie Sherrill wins Democratic nomination for NJ governor
Rep. Mikie Sherrill wins Democratic nomination for NJ governor

Politico

time19 minutes ago

  • Politico

Rep. Mikie Sherrill wins Democratic nomination for NJ governor

Democrats chose Rep. Mikie Sherrill as their nominee for governor of New Jersey, as the party attempts to defy odds by holding onto the governorship for a third term in a row. The Associated Press called the race just under an hour after polls closed. The four-term member of Congress prevailed in the crowded Democratic primary field on Tuesday to succeed term-limited Gov. Phil Murphy. She'll face Republican Jack Ciattarelli, setting up a high-stakes battle of two party establishment favorites. Both sides acknowledge that November's election will be competitive. Although the electorate does favor Democrats, it's been decades since Democrats have won the governorship three terms in a row in the Garden State. But in recent history, the candidate of the party opposite of the one that controls the White House typically wins the race for governor. Still, Republicans are emboldened by President Donald Trump's closer-than-expected loss in New Jersey last November, as well as the gains they've made to cut into Democrats' voter registration advantage. And Republicans argue it helps that they have a candidate with high name ID: Ciattarelli ran for governor two times prior and narrowly lost to Murphy in 2021.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store