Senate Republicans Gut Gov. Braun’s Property Tax Relief Proposal

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While Senate Bill 1 was passed on Tuesday, Indiana Senate Republicans decided to drop the main portions of Gov. Mike Braun’s property tax cut proposal.

Local governments expressed concern about Senate Bill 1 because they believed it would negatively impact local revenues which provide funding for basic services such as public safety.

Instead, their version of property tax relief includes tightening requirements for schools to advance certain referendums, limiting how much property tax levies can grow and introducing a credit for first-time homebuyers.

Sen. Travis Holdman, who authored Senate Bill 1, introduced the amended version in committee on Tuesday.

“We have worked consistently with the governor’s office to get this to a good spot,” Holdman said. “We just think there’s a fine line that we have to walk to make sure that we are careful to be responsible to local government and, at the same time, provide some tax relief.”

In a statement, Braun’s office said the plan took “steps in the right direction” but said he would continue to work with legislators on the administrative priority.

“The Governor will carefully review the changes to his plan and looks forward to working with the House and Senate to strengthen the amended bill to include broad based and immediate property tax cuts for Hoosier homeowners who have been hit the hardest by skyrocketing home value inflation.”