Indiana lawmakers still mulling property tax relief
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You're almost certainly going to get property tax relief next year. Probably.
Yes, but: It's still unclear what it's going to look like.
Why it matters: Indiana's property tax system is based on the assessed value of homes, which means that many homeowners have seen massive increases in their tax bills in recent years, alongside skyrocketing home prices.
- While assessed home values have increased quickly, wages haven't.
- Homeowners who aren't looking to sell aren't necessarily reaping the benefit of their appreciating home value, but are trying to pay their tax bills with relatively flat salaries while also contending with inflation in other parts of the economy.
The big picture: Gov. Mike Braun tasked lawmakers with making property tax relief for homeowners the top priority this legislative session.
Driving the news: House Republicans introduced the third major attempt to do so Wednesday, but it won't be the last.
- Rep. Jeff Thompson, R-Lizton, the bill's author, introduced a proposal that would offer moderate relief to homeowners while shifting some taxes to other classes of property and overhauling the state's local income tax system.
- "It doesn't have it all in there," Thompson said.
Flashback: Last month, Braun threatened to veto the proposal put forth by Senate Republicans, saying it didn't do enough for homeowners.
- On Wednesday, Braun told reporters he expects a compromise bill to include "a combination of everything you've seen at this point" and more of his original proposal, which resulted in bigger savings to property owners but sent local taxing units into a panic over the predicted revenue losses.
- "That's going to be about one of the last things that gets resolved," Braun said.
The other side: Local officials still have concerns about the impact on budgets and services in their communities.
- Ken Sicard, president of the Ferdinand Town Council, said local officials might have to consider reducing trash pickup, doing less road repair and cutting other town services if the bill is passed as written.
- Rep. Hal Slager, R-Schererville, said he needs more detail on what the bill will do to cities, towns, schools and other units of government that rely on property tax dollars and local income taxes.
- "We need to (know) exactly what these impacts are going to be," Slager said. "I don't know anybody that fully understands that."
The latest: As the bill is currently drafted, homeowners would pay more next year but less than they would under current law.
- Instead of seeing an increase of $144, the average homeowner would see an increase of just $77.
- Thompson said his goal is that next year's bills will be lower than this year for the average homeowner without taking away from local government.
- "There are ways to do that," he said. "I'm working on that right now."
What's next: The committee did not vote on the bill and might not until next month.
- Thompson said he expects further amendments.