Indiana House Ways and Means takes testimony on amended property tax bill

INDIANAPOLIS– The House Ways and Means Committee took testimony on Wednesday for Gov. Mike Braun’s amended property tax bill (SB 1) for the first time.

The bill passed out of the Senate last month with significant rewrites, including the elimination of a “2021 rate reset” provision. The bill’s lead author called for collaboration after the committee he chairs removed that part of the governor’s plan.

“As of January 1, 2025, there’s $54 billion of debt that is owed by local units of government,” said State Sen. Travis Holdman (R-Markle), the Tax and Fiscal Policy chair.

House lawmakers on both sides of the aisle expressed concerns over the amended bill, with some calling it a temporary solution to the property tax problem.

“I think this is still that short/medium-term fix,” said State Rep. J.D. Prescott (R-Union City).

“This is really tricky, as everyone is highlighting,” said State Rep. Jack Jorden (R-Bremen).

“I just wanted to make it clear that I think so far we’re doing very little for the homeowners,” said State Rep. Ed DeLaney (D-Indianapolis).

Gov. Braun has threatened to veto the bill or call a special session if the bill passes as is. The governor and Indiana House Speaker Todd Huston had an hour-long meeting Monday—the first of many they say to talk property tax relief strategies.

“Everything in [SB 1], we’re okay with it,” Gov. Braun said. “We just need to amend it to get to where we need to be, and I feel confident that we’ll get there.”

But hours before their meeting, Speaker Huston said it was too early to say if House lawmakers would put Gov. Braun’s “2021” provision back into the bill.  

“There are a lot of factors in all this [that] Chairman Thompson and his committee will be considering,” said Speaker Huston.

More than 40 people signed up to testify for or against SB 1 Wednesday.

“Commissioners are not pro-tax,” said Knox County Commissioner Kellie Streeter. “We’re not pro-tax on small business, agriculture, certainly not on our constituents, but we understand the Indiana Constitution…that require[s] us to provide services at the local level.”

More than 100 people signed up to testify for or against a related bill (SB 518) that would require several public schools and charter schools to share property taxes.

“SB 1 would cut IPS funding by $1.2 million in 2026, increasing by $2.9 million in 2028,” said teacher Ella Hereth. “Combined with SB 518, these bills would jeopardize student education.”

It’s unclear when the committee will vote to move both bills to the House Floor.