by: Leslie Bonilla Muñiz
and Casey Smith
Indiana Capital Chronicle
House lawmakers resuscitated several provisions meant to help homeowners struggling with high tax bills — after Senators removed them earlier this month— in a finalized compromise bill.
“We know in our data that we’re going to see, more than likely, a repeat [of elevated bills] again in 2024,” said bill author Rep. Jeff Thompson, R-Lizton. “This is the time to take care of homeowners in the following years.”
Thompson said homeowners would save $109 million in the legislation’s first year. An updated fiscal analysis was not available in late April.
Not all lawmakers were satisfied — but said something was better than nothing.
“I’m supporting this because we really have not done anything significant to help homeowners. This is one step in that direction,” said Rep. Cherrish Pryor, D-Indianapolis. “I quite frankly wish that we had done more, or could have done more, but right now, homeowners are hurting.”
Tax bills statewide averaged 18% higher than last year, according to an analysis by the Association of Indiana Counties and Policy Analytics. The legislation doesn’t help with this year’s bills, due today, May 10.
House Bill 1499 would expand a supplemental deduction that’s currently set to a flat 25%.
Homeowners with properties less than $600,00 would see assessed value deductions of 35% for taxes this year, 40% for 2024, 37.5% for 2025 and and 35% for those due afterward. Those with properties worth more than $600,00 would get smaller deductions.
The bill would also raise income eligibility for senior citizen property tax deductions by linking the caps to the cost of living increases applied to Social Security benefits.
And it would limit school corporation operating referendum tax levies approved before this year that are payable in 2024— to a 3% increase of this year’s maximum tax, or to the 2024 maximum.
Other provisions would make it easier for property owners to contest their property tax assessments and let counties choose to provide their own property tax relief— which could take effect as early as this fall. But counties would take the financial hit without state aid.
Homeowners could also soon see receipts from the state explaining— “in a way that is easy to read and understand”— how general fund money and potentially other tax revenues were used.
The bill originally would’ve temporarily lowered the property tax caps enshrined in Indiana’s constitution — which cap residential bills at 1% of property value.
The House voted to approve the bill unanimously, 98-0. The Senate, meanwhile, approved it 49-1, with on-the-outs Republican Mike Young of Indianapolis voting in opposition.