Latest news with #HouseBill1402
Yahoo
15-04-2025
- Business
- Yahoo
Senate approves property tax bill in late night vote, sends it governor's desk
In a late-night vote, the Indiana Senate approved a property tax bill Monday that will save two-thirds of taxpayers up to $300 on their 2026 property tax bill while local governments and schools will lose more than $1.4 billion through 2028. Gov. Mike Braun, who campaigned on property tax relief, issued a statement after the Senate approved the bill calling it a 'historic' plan to reduce property taxes for most Hoosier homeowners while limiting future tax hikes and making the tax system fairer and more transparent. 'Real property tax relief was a core promise of my freedom and opportunity agenda and with the collaborative leadership of our legislators we are delivering real savings and protections for taxpayers. I look forward to signing the bill as soon as I receive it,' Braun said in the statement. A Legislative Service Agency fiscal impact report shows that will cut more than $1.4 billion across the state between 2026 and 2028, including $744 million from schools, $61 million from libraries, $451 million from cities and towns, and $403 million from counties. In Lake County, that amounts to $235 million in cuts to schools and governmental units over the next three years, while Porter County will see a loss of $49.6 million. The Senate passed Senate Bill 1 in a 27-22 vote, with 12 Republicans joining all Democrats to vote against the bill. Sen. Dan Dernulc, R-Highland, voted against the bill; Sen. Ed Charbonneau, R-Valparaiso, voted in favor of the bill. Sen. Rick Niemeyer, R-Lowell, was excused. Senate Bill 1, which was renamed the local government finance bill, was first presented in the Senate to include the language and formula of the property tax relief that Braun campaigned on. The Senate amended the bill to remove that language, but include other provisions for relief When the bill was sent to the House, Ways and Means Chairman Rep. Jeffery Thompson, R-Lizton, stripped the bill and inserted language from his House bill 1402. Ultimately, the bill was amended to include portions of the Senate's amended bill, House Bill 1402 and Senate Bill 518, which requires school corporations to share referendum funds with area charter schools. Thompson proposed a six-page amendment, named Amendment 36, last week that will result in $1.2 billion of property tax relief over the course of 3 years, which would be accomplished by the amendment shifting the standard deduction credit to 10% or no more than $300, he said. 'Two-thirds of homeowners in 2026 will receive a bill less than they received in 2025,' said Sen. Travis Holdman, R-Markle. Holdman, who authored Senate Bill 1, went over other elements included in Senate Bill 1, which includes school referenda to be held during general elections and a one-year 'cooling off period' after a referendum project is paid off, eliminates the 30% floor for business personal property tax and property tax credits for those 65 years old and older and veterans, Holdman said. The local income tax, beginning in 2028, will decrease from 3.75% to 2.9%, Holdman said. The 2.9% has to be allocated as follows: 1.2% for county general revenue, 0.4% for EMS and fire departments, and 0.2% for townships and libraries, he said. 'I think there are expenses that cities and towns and county governments have that they could trim their budgets. We've found in state government and at the federal level there's a lot of contracts that have been met that aren't being utilized. I think there needs to be a review of all expenditures at the local level to make sure that they're spending their dollars wisely,' Holdman said. If local officials realize they need their current level of funding, Holdman said they could raise their local income tax. But, Holdman also advised against that. 'Just because you don't receive as much in property tax, doesn't mean you have to backfill all of that with income tax. You have an opportunity to become more efficient and to cut your budgets and do what you've got to do to get by with less,' Holdman said. Sen. Fady Qaddoura, D-Indianapolis, said schools and local governments, which use property tax dollars for services like fire, police, public works, and others, will see a decrease of $1.4 billion. Holdman disagreed with that characterization. He said that local governments will still receive an increase in funds year over year through 2028, but they won't receive the same amount in tax dollars if the property tax system remained 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 current law, but the large, large majority of schools and municipal governments and counties would receive more in 2026 than they did in 2025, more in 2027 and more in 2028,' Holdman said. Sen. Rodney Pol, D-Chesterton, said while Senate Bill 1 doesn't state that local governments have to increase the income tax, it will force local governments to find other ways to fund essential services. 'You're putting them between a rock and a hard place,' Pol said. Senate Bill 1 has 'multiple poison pills' within it, Pol said, and will force local governments and schools to make difficult decisions 'at a time where things are just uncertain as is.' 'We forced too much into one bill,' Pol said. Sen. Andrea Hunley, D-Indianapolis, said she would've liked the Senate Bill 518 portion of the bill to be stripped out because 'taking money from one of our systems that is underfunded and giving it to another system that's underfunded' isn't the way to fund education. Sen. Linda Rogers, R-Granger, said the Senate Bill 518 portion of the bill was 'significantly' abbreviated in Senate Bill 1 and the sharing of funds doesn't start until 2028. 'What this is is fairness. The money follows the student,' Rogers said. Sen. Shelli Yoder, D-Bloomington, said while property tax relief is a worthy goal, Senate Bill 1 doesn't provide relief but proposes 'a mixed bag.' 'It is dressed up as a lifeline, but it is going to drag our communities under,' Yoder said. 'What we started with as a bill to provide relief to struggling Hoosiers has turned into a calamity for communities.' Holdman said Senators had to 'take a deep breath.' 'We need to realize that two-thirds of our homeowners will pay less in 2026 than they did in 2025,' Holdman said. 'Many of the provisions of this bill do not take effect for two more years, so we have time to find fixes if we find there is a need for that.' akukulka@
Chicago Tribune
15-04-2025
- Business
- Chicago Tribune
Senate approves property tax bill in late night vote, sends it governor's desk
In a late-night vote, the Indiana Senate approved a property tax bill Monday that will save two-thirds of taxpayers up to $300 on their 2026 property tax bill while local governments and schools will lose more than $1.4 billion through 2028. Gov. Mike Braun, who campaigned on property tax relief, issued a statement after the Senate approved the bill calling it a 'historic' plan to reduce property taxes for most Hoosier homeowners while limiting future tax hikes and making the tax system fairer and more transparent. 'Real property tax relief was a core promise of my freedom and opportunity agenda and with the collaborative leadership of our legislators we are delivering real savings and protections for taxpayers. I look forward to signing the bill as soon as I receive it,' Braun said in the statement. A Legislative Service Agency fiscal impact report shows that will cut more than $1.4 billion across the state between 2026 and 2028, including $744 million from schools, $61 million from libraries, $451 million from cities and towns, and $403 million from counties. In Lake County, that amounts to $235 million in cuts to schools and governmental units over the next three years, while Porter County will see a loss of $49.6 million. The Senate passed Senate Bill 1 in a 27-22 vote, with 12 Republicans joining all Democrats to vote against the bill. Sen. Dan Dernulc, R-Highland, voted against the bill; Sen. Ed Charbonneau, R-Valparaiso, voted in favor of the bill. Sen. Rick Niemeyer, R-Lowell, was excused. Senate Bill 1, which was renamed the local government finance bill, was first presented in the Senate to include the language and formula of the property tax relief that Braun campaigned on. The Senate amended the bill to remove that language, but include other provisions for relief When the bill was sent to the House, Ways and Means Chairman Rep. Jeffery Thompson, R-Lizton, stripped the bill and inserted language from his House bill 1402. Ultimately, the bill was amended to include portions of the Senate's amended bill, House Bill 1402 and Senate Bill 518, which requires school corporations to share referendum funds with area charter schools. Thompson proposed a six-page amendment, named Amendment 36, last week that will result in $1.2 billion of property tax relief over the course of 3 years, which would be accomplished by the amendment shifting the standard deduction credit to 10% or no more than $300, he said. 'Two-thirds of homeowners in 2026 will receive a bill less than they received in 2025,' said Sen. Travis Holdman, R-Markle. Holdman, who authored Senate Bill 1, went over other elements included in Senate Bill 1, which includes school referenda to be held during general elections and a one-year 'cooling off period' after a referendum project is paid off, eliminates the 30% floor for business personal property tax and property tax credits for those 65 years old and older and veterans, Holdman said. The local income tax, beginning in 2028, will decrease from 3.75% to 2.9%, Holdman said. The 2.9% has to be allocated as follows: 1.2% for county general revenue, 0.4% for EMS and fire departments, and 0.2% for townships and libraries, he said. 'I think there are expenses that cities and towns and county governments have that they could trim their budgets. We've found in state government and at the federal level there's a lot of contracts that have been met that aren't being utilized. I think there needs to be a review of all expenditures at the local level to make sure that they're spending their dollars wisely,' Holdman said. If local officials realize they need their current level of funding, Holdman said they could raise their local income tax. But, Holdman also advised against that. 'Just because you don't receive as much in property tax, doesn't mean you have to backfill all of that with income tax. You have an opportunity to become more efficient and to cut your budgets and do what you've got to do to get by with less,' Holdman said. Sen. Fady Qaddoura, D-Indianapolis, said schools and local governments, which use property tax dollars for services like fire, police, public works, and others, will see a decrease of $1.4 billion. Holdman disagreed with that characterization. He said that local governments will still receive an increase in funds year over year through 2028, but they won't receive the same amount in tax dollars if the property tax system remained 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 current law, but the large, large majority of schools and municipal governments and counties would receive more in 2026 than they did in 2025, more in 2027 and more in 2028,' Holdman said. Sen. Rodney Pol, D-Chesterton, said while Senate Bill 1 doesn't state that local governments have to increase the income tax, it will force local governments to find other ways to fund essential services. 'You're putting them between a rock and a hard place,' Pol said. Senate Bill 1 has 'multiple poison pills' within it, Pol said, and will force local governments and schools to make difficult decisions 'at a time where things are just uncertain as is.' 'We forced too much into one bill,' Pol said. Sen. Andrea Hunley, D-Indianapolis, said she would've liked the Senate Bill 518 portion of the bill to be stripped out because 'taking money from one of our systems that is underfunded and giving it to another system that's underfunded' isn't the way to fund education. Sen. Linda Rogers, R-Granger, said the Senate Bill 518 portion of the bill was 'significantly' abbreviated in Senate Bill 1 and the sharing of funds doesn't start until 2028. 'What this is is fairness. The money follows the student,' Rogers said. Sen. Shelli Yoder, D-Bloomington, said while property tax relief is a worthy goal, Senate Bill 1 doesn't provide relief but proposes 'a mixed bag.' 'It is dressed up as a lifeline, but it is going to drag our communities under,' Yoder said. 'What we started with as a bill to provide relief to struggling Hoosiers has turned into a calamity for communities.' Holdman said Senators had to 'take a deep breath.' 'We need to realize that two-thirds of our homeowners will pay less in 2026 than they did in 2025,' Holdman said. 'Many of the provisions of this bill do not take effect for two more years, so we have time to find fixes if we find there is a need for that.'
Yahoo
08-04-2025
- Business
- Yahoo
Lake County passes resolution against portion of Senate Bill 1
The Lake County Council passed a resolution Tuesday in opposition to a provision in Senate Bill 1 that eliminates business personal property tax. On Monday, Senate Bill 1, which aims to provide property tax relief, was amended to include elements of three bills: the Senate amended Senate Bill 1, Senate Bill 518, which requires school corporations to share referendum funds with charter schools, and House Bill 1402, proposed by House Ways and Means committee chairman Rep. Jeff Thompson, R-Lizton, which includes a 5-year phase-in of exemptions and deductions so that every parcel in the state hits the property tax cap. The Lake County Council resolution states that Senate Bill 1 'would have an impact on municipal taxing units exceeding $2 billion.' In Lake County, the proposed property and business personal tax cuts would result in an estimated tens of millions of dollars, according to the resolution. While the local income tax adoption, which was offered as a solution for property tax cuts in the House Ways and Means committee, that option isn't 'adequate to replace the magnitude of what is being eliminated, making it a necessity rather than an option.' 'With an essentially mandated income tax increase being the only alternative proposed by lawmakers, the homeowners who these tax measures endeavor to assist will be among the same individuals paying the income tax, making businesses the only recipient of the tax cuts,' according to the resolution. If Senate Bill 1 were passed as proposed, Lake County 'will be forced to make significant cuts to services' and result in stress on the county's budget, which will negatively impact the county's ability to enter into bonds or to save money for new development, according to the resolution. 'The statewide local impact of the primary tax-related bills is estimated to be a staggering figure, that would cause widespread negative effects, increase tax burdens on individuals, while offering even more to businesses in an already business tax-friendly state,' according to the resolution. The resolution passed with all five Democratic members voting in favor while Councilman Randy Niemeyer, R-7th, voting against the resolution and Councilman Pete Lindemulder, R-4th, abstaining. As a small business owner, Niemeyer said he's in favor of eliminating the business personal property tax as long as a replacement for the tax is proposed. Niemeyer said he's served in local government for 17 years and understands that the essential services local government provides are not 'duplicated at any other level.' Niemeyer said he met with Gov. Mike Braun, at the governor's residence, last week, and told him to review the report Finance Director Scott Schmal put together, which shows the root cause of increased property taxes for homeowners has been the discrepancy in assessed value calculations of homes versus businesses. 'The mathematical equations are broken,' Niemeyer said. 'I'm not opposed to the reform. I think reform is a healthy thing, that we should do probably once every 10 years anyways, is take a look at all of our systems and make sure it matches the current environment and the needs of services to the people.' Lindemulder said he talked with a legislator who told him that the legislature is 'just scatter-shooting this whole thing.' Lindemulder said his concern is that if the proposed property tax reform is approved, it will force municipalities to pass innkeepers taxes or food and beverage taxes to fill their budgets. 'Those taxes are never going away,' Lindemulder said. 'We're just increasing taxes long-term by trying to show a win in the short term.' Councilman Ted Bilski, D-6th, said the resolution shows the legislature 'needs to be addressed.' 'They need to stop messing with this. We need to put as much pressure on them and say, 'You know what? Quit trying to destroy everything for all 92 counties,'' Bilski said. 'I'm disgusted with what's going on down there. They're completely wrong.' Braun said last week that the legislature and his administration will work on the property tax bill and 'land it in a spot' where local governments and schools 'are healthy.' 'But there's got to be real relief for the taxpayer. If everybody is pissed off, we've probably done it right. We'll see. There's been a big overreaction, I think, among local governments and school districts,' Braun said. akukulka@
Chicago Tribune
08-04-2025
- Business
- Chicago Tribune
Lake County passes resolution against portion of Senate Bill 1
The Lake County Council passed a resolution Tuesday in opposition to a provision in Senate Bill 1 that eliminates business personal property tax. On Monday, Senate Bill 1, which aims to provide property tax relief, was amended to include elements of three bills: the Senate amended Senate Bill 1, Senate Bill 518, which requires school corporations to share referendum funds with charter schools, and House Bill 1402, proposed by House Ways and Means committee chairman Rep. Jeff Thompson, R-Lizton, which includes a 5-year phase-in of exemptions and deductions so that every parcel in the state hits the property tax cap. The Lake County Council resolution states that Senate Bill 1 'would have an impact on municipal taxing units exceeding $2 billion.' In Lake County, the proposed property and business personal tax cuts would result in an estimated tens of millions of dollars, according to the resolution. While the local income tax adoption, which was offered as a solution for property tax cuts in the House Ways and Means committee, that option isn't 'adequate to replace the magnitude of what is being eliminated, making it a necessity rather than an option.' 'With an essentially mandated income tax increase being the only alternative proposed by lawmakers, the homeowners who these tax measures endeavor to assist will be among the same individuals paying the income tax, making businesses the only recipient of the tax cuts,' according to the resolution. If Senate Bill 1 were passed as proposed, Lake County 'will be forced to make significant cuts to services' and result in stress on the county's budget, which will negatively impact the county's ability to enter into bonds or to save money for new development, according to the resolution. 'The statewide local impact of the primary tax-related bills is estimated to be a staggering figure, that would cause widespread negative effects, increase tax burdens on individuals, while offering even more to businesses in an already business tax-friendly state,' according to the resolution. The resolution passed with all five Democratic members voting in favor while Councilman Randy Niemeyer, R-7th, voting against the resolution and Councilman Pete Lindemulder, R-4th, abstaining. As a small business owner, Niemeyer said he's in favor of eliminating the business personal property tax as long as a replacement for the tax is proposed. Niemeyer said he's served in local government for 17 years and understands that the essential services local government provides are not 'duplicated at any other level.' Niemeyer said he met with Gov. Mike Braun, at the governor's residence, last week, and told him to review the report Finance Director Scott Schmal put together, which shows the root cause of increased property taxes for homeowners has been the discrepancy in assessed value calculations of homes versus businesses. 'The mathematical equations are broken,' Niemeyer said. 'I'm not opposed to the reform. I think reform is a healthy thing, that we should do probably once every 10 years anyways, is take a look at all of our systems and make sure it matches the current environment and the needs of services to the people.' Lindemulder said he talked with a legislator who told him that the legislature is 'just scatter-shooting this whole thing.' Lindemulder said his concern is that if the proposed property tax reform is approved, it will force municipalities to pass innkeepers taxes or food and beverage taxes to fill their budgets. 'Those taxes are never going away,' Lindemulder said. 'We're just increasing taxes long-term by trying to show a win in the short term.' Councilman Ted Bilski, D-6th, said the resolution shows the legislature 'needs to be addressed.' 'They need to stop messing with this. We need to put as much pressure on them and say, 'You know what? Quit trying to destroy everything for all 92 counties,'' Bilski said. 'I'm disgusted with what's going on down there. They're completely wrong.' Braun said last week that the legislature and his administration will work on the property tax bill and 'land it in a spot' where local governments and schools 'are healthy.' 'But there's got to be real relief for the taxpayer. If everybody is pissed off, we've probably done it right. We'll see. There's been a big overreaction, I think, among local governments and school districts,' Braun said.
Yahoo
07-04-2025
- Business
- Yahoo
Indiana property tax bill amended in House Ways and Means, advances to House
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@
