INDIANAPOLIS — Members of the Indiana Senate Committee on Tax and Fiscal Policy passed Senate Bill 1 on Tuesday, the bill that highlights the property tax proposal brought forward by Indiana Gov. Mike Braun.
One of its priorities for the 2025 session, Senate Bill 1 was written by Indiana State Senator Travis Holdman, a Republican from Markle. According to previous reports, this bill gave Senate Republicans the chance to collaborate with Braun and the Indiana House of Representatives to “pass meaningful tax reform.”
According to a news release from the Indiana Senate Republicans, officials said the plan includes multiple policies to limit property tax growth, including:
- Freezing local property tax operating fund levies for property taxes paid in 2026, then imposes a 1% growth cap in 2027 and a 2% growth cap in 2028.
- Limiting local governments’ ability to go above the annual maximum operating levy growth cap, requiring officials to pursue a referendum to go above the maximum
- Forcing local government to have a separate public meeting and have a stand-alone vote on annual levy increases
- Creating a new $2,500 property tax credit for first-time homebuyers
- Expanding eligibility for the existing disabled veteran property tax deduction
- Reforming the agricultural land assessment formula
- Requiring all referendums to occur during November general elections
“I want to thank Gov. Braun for his leadership on the important issue of property tax relief for Hoosiers,” Holdman said in the release. “The governor and his team have been great collaborators on this issue. I also want to acknowledge the members of our Tax and Fiscal working group who have put in countless hours over the last two years as we have closely studied Indiana’s tax system. I believe we are offering a strong plan to cut property taxes for all Hoosiers – especially homeowners and farmers – and I look forward to continued work on this bill in the Senate and with our colleagues in the House as we find a plan that will enact meaningful property tax relief for Hoosiers.”
Property taxes have been one of the main subjects of Braun’s campaign as well as the early part of his term as Indiana’s Republican governor. According to previous reports, Braun spoke at length about tax relief during his recent State of the State address, specifically highlighting Senate Bill 1 in the speech.
“Hoosiers from all over the state told me these tax bills keep rising, but wages aren’t keeping pace,” Braun said. “This is not sustainable.”
