Holdman outlines Senate Republican property tax cut plan

FOR IMMEDIATE RELEASE
Contact: Paige Gehlhausen, Press Secretary
Paige.Gehlhausen@iga.in.gov
317-232-9425

Holdman outlines Senate Republican property tax cut plan

STATEHOUSE (Feb. 11, 2025) — Senate Republicans' top priority bill to enact meaningful property tax reform passed the Senate Committee on Tax and Fiscal Policy today, said State Sen. Travis Holdman (R-Markle).

Holdman, who authored Senate Bill 1, said the Senate Republican plan seeks to balance the very real needs of relief for homeowners with the budget realities of local governments. As it passed committee, SB 1 includes multiple policies to limit property tax growth for all Hoosiers, including reforms to the referendum process, along with specific property tax relief for homeowners and farmers. Most significantly, SB 1 would freeze local operating fund levies in 2026. All told, this package is projected to save Hoosier taxpayers $1.4 billion on their property tax bills over the next three years.

"I want to thank Gov. Braun for his leadership on the important issue of property tax relief for Hoosiers," Holdman said. "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."

Provisions in the Senate Republican Property Tax Cut Plan

Limitations on property tax growth for all Hoosiers

• SB 1 freezes local property tax operating fund levies for property taxes paid in calendar year 2026, then imposes a 1% growth cap in 2027 and a 2% growth cap in 2028.
• Starting in 2029, SB 1 implements a new levy growth formula intended to limit big year-to-year swings in levy growth.
• SB 1 limits local governments' ability to go above the annual maximum operating levy growth cap. Instead, local officials will have to pursue a referendum, so voters can decide whether to approve extra levy growth.
• SB 1 ends automatic levy growth by forcing local governments to have a separate public meeting and have a stand-alone vote on annual levy increases.

Relief for homeowners

• SB 1 creates a new $2,500 property tax credit for first-time homebuyers, with a home value cap of $250,000 and an income cap of $75,000.
• SB 1 expands eligibility for the existing disabled veteran property tax deduction, senior citizen property tax deduction and senior citizen property tax circuit breaker credit. It also increases the value of these deductions to $20,000.
• SB 1 gives counties the option to let homeowners annually defer up to $500 of their property tax bill until their home is sold.

Relief for farmers

• SB 1 reforms the agricultural land assessment formula to cut property taxes for farmers.

Reforms to the referendum process

• SB 1 institutes a one-year "cooling off" period for capital project referendums, so taxpayers can see one year of savings on their property tax bills before deciding whether to approve a new referendum.
• SB 1 requires all referendums to occur during November general elections when turnout is highest.

The Indiana General Assembly reconvened for the 2025 legislative session Jan. 8 and must conclude by April 29. Visit iga.in.gov to view livestreams and archive videos of session and committee meetings, view legislative calendars, review legislation and more. To read more about the Senate Republican agenda, visit IndianaSenateRepublicans.com/2025Agenda.

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State Sen. Travis Holdman (R-Markle) represents Senate District 19,
which includes Adams, Blackford, Jay and
Wells counties and a portion of Allen County.
Click here to download a high-resolution photo.