Indiana's property tax reform delivers relief while preserving local growth

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2 days ago

Indiana's 2024 elections sent a message to leaders that Hoosiers across the state were concerned about getting squeezed out of their homes by skyrocketing property taxes.
The angst I heard talking to members of our community came, of course, with an acknowledgement that rising taxes were a result of increased home values, but a lack of transparency around home assessments and some frustration with a seemingly endless chain of school referenda made it clear that many Hoosiers were demanding relief.
Heading into the 2025 legislative session, it surprised no one that this issue was front and center for lawmakers. After months of negotiations and input from residents, the Indiana General Assembly delivered one of the most significant changes to local taxation we have seen in nearly two decades.
No one got exactly what they wanted — it would take you three minutes on social media to know that — but the result is a bill that provides immediate relief to nearly every Hoosier and, when fully implemented, allows homeowners to deduct two-thirds of their assessed value to lower their property tax bill while reining in $54 billion in local government debt.
We transformed some tax deductions into tax credits, a change that will result in lower actual tax bills for thousands of taxpayers; moved school referendums to even-year general election ballots to ensure better participation; and lowered the amount of local income taxes governments can collect by $1.9 billion.
In short, while changes to tax policy can be complicated, Senate Enrolled Act 1 not only gives Hoosier homeowners tax relief today, but also moves Indiana to a fairer, simpler and more balanced local tax system in the near future.
One of my goals as a state legislator is to ensure the voices of growing communities are represented in these debates. It was important that we find a balance between needed relief and the resources upon which communities like mine have come to rely, resources that represent critical investments in quality of life, amenities, infrastructure and key services.
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Carmel and Westfield, the cities I represent at the Statehouse, have enjoyed forward-thinking, fiscally responsible leadership for years. The results are demonstrative.
Carmel, for example, was ranked No. 2 on the list of the Best Places to Live in 2025 by Livability & U.S. News, and both communities are consistently ranked among the best in the country. Indiana, moreover, is now ranked 7th nationally for net in-migration, with the high-earning, talented individuals Indiana needs flocking to cities in Hamilton County. That's not an accident. The strategies that Carmel and Westfield have implemented should be celebrated and enhanced by the policies coming from the Statehouse.
That balance was not easy to strike and local governments and schools will, no doubt, be faced with difficult decisions in the future. But SEA 1 represents much-needed reform to a convoluted property tax system that disincentivizes these hard decisions today at taxpayers' expense.
Even with these changes, schools in my district will receive more money from property taxes over the next three years, and the new state budget increases tuition support for students.
I am proud of the work we did this session on this issue, and I am equally grateful for the perspectives, insights, and counsel shared by our incredible local leaders who helped legislators avoid harmful unintended consequences.
As with any bill this complex, property tax reform will remain a topic of discussion in the General Assembly, and we will be making tweaks to the law moving forward. But SEA 1 is a strong step forward to helping homeowners while improving accountability in local government spending.
State Rep. Danny Lopez, R-Carmel, represents House District 39, which includes a portion of Hamilton County.
This article originally appeared on Indianapolis Star: Indiana property tax reform delivers relief for homeowners | Opinion