WARSAW — Kosciusko County Council finished two days of budget meetings on Tuesday and finalized some key decisions.

Council compromised on a request by Sheriff Jim Smith to establish a cost-of-living adjustment increase for retirees.

Smith lobbied for weeks for a three percent COLA program for retirees and for current deputies who qualify.

Council agreed to start a COLA for current deputies at 1.5 percent and provide an annual bonus check for existing retirees as long as the sheriff's department's pension plan remains funded at a certain level.

Smith said the new benefit is needed to attract and retain quality workers and pointed out that other nearby large law enforcement agencies already provide the program.

Smith said he appreciated the effort, especially in what has been difficult times for local taxing units due to property tax reform efforts by state lawmakers.

Council also approved a plan presented by the county's judges to provide probation workers with a $10,000 stipend from user fees to help make up for a longstanding shortfall in their pay levels.

Officials believe the user fee is healthy enough to replenish itself and cover annual stipends for the probation officers.

County judges said they would review the plan to continue the contribution each year.

Efforts to provide a sizeable hike have been discussed for about a year, and a plan earlier this year was shot down.

Probation officers' wages are paid by both the state and the county.  County judges have a key role in helping increase the county’s contribution to probation officer salaries.

The proposal was approved by a 5-2 vote on Tuesday.

Those opposed were Kathy Groninger, who said she wanted more information on the issue, and Council President Tony Ciriello, who said he thought it was too much. 

Council also approved numerous wage adjustments based on a recommendation from the county wage committee. Some of those were for elected officials.

Most other county employees will receive a two percent pay hike for 2026.

County officials entered the budget sessions worried for weeks over how much impact state legislation known as SB 1 would have on local taxing units.

Schools sustained the largest reduction, but Ciriello said county taxing units across the county were expected to see some $700 million in lost revenues.

So far, the impact has been less than expected.

“This year was a little more difficult because of the unknown factors of Senate Bill 1, but when we found out we were in better shape than we thought we would be, it kind of took a little burden off us, (but) we’re still conscious of things," Ciriello said.

The county also had some good news as a result of investments.

“We’re fortunate (that) last year, our investments brought us in about $5 million in interest, which kept us a little more solvent and upright for right now,” he said.

According to preliminary budget information provided by the county, which will still see total salary allocations decrease, the general fund budget, which covers many of core county expenditures, is expected to rise from $30.5 million in 2025 to slightly under $32 million in 2026.

Final calculations will be reviewed, and cuts to the 2026 plan could still be made if necessary, Ciriello said.

The budget needs to be approved in September.

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WARSAW — Two area state lawmakers defended passage of SB 1, the property tax reform bill, which will have an impact on local governments.

Local elected officials have expressed concern, with some predicting that all of the taxing units in Kosciusko County — including cities, schools, towns, libraries, and Kosciusko County — will see a combined $5 million in lost tax revenue.

State Rep. Craig Snow and State Sen. Ryan Mishler both addressed the local budget issue. Snow said that with the exception of Warsaw schools, other taxing units will only see the rate of growth in tax revenue slow and won’t be reduced overall.

Warsaw schools are expected to see a decrease in funding of about $1.1 million.

Both lawmakers spoke on a wide range of issues Tuesday to Kosciusko Chamber of Commerce members and were asked what their message was to elected leaders who have expressed concern.

Despite the claims, they contend that local tax revenues are not being cut — instead, they are just not growing as once expected.

Snow points out that Kosciusko County, in 2026, will see anticipated revenue growth of 1.8 percent. In 2027, it’ll grow 4.9 percent while Warsaw will grow 3.7 percent in 2026 and 6.6 percent in 2027.

Snow said he received calls from local leaders concerned about the budget cuts.

"You know, I look at Tony Ciriello, president of the county (council), pulling his hair out, thinking, 'My gosh, the sky's falling. We're gonna start out the year with millions in deficits.' That's not the case. You just may not be able to do that project this year. You may have to wait a year," Snow said.

Snow also took a shot at consulting firms that work with taxing units on forecasting budget trends. One of those was Baker Tilly, which works with the city of Warsaw.

"But holy cow, when you come into a group, the county, the city, and schools, and start presenting this stuff, (need to) present it in an accurate fashion," Snow said. "The sky is not exactly falling. You're just gonna get a little less of your game."

Lawmakers faced more pressure after receiving a revenue forecast for future years that predicted a potential $2.4 billion decrease in state revenues in the future.

Overall, crafters of the state budget sought decreases of upward to 10 percent.

Mishler argued that circumstances involving state budget decisions are even more constraining than what is happening at the local level.

"In year 2, locals are going to have a 5.1 percent increase — projected — and we're (state) going to see one tenth of a percent," Mishler said. "We're not really feeling the sympathy there."

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Shortly after midnight Tuesday, Indiana Senate Republicans agreed to significant changes in an immense local property and income tax plan — avoiding risky negotiations in favor of sending it to Gov. Mike Braun.

Despite earlier reservations — and a pressure campaign to veto — the governor appeared resolute immediately following the Senate vote.

“This is historic property tax relief. Senate Bill 1 cuts property taxes for most Hoosier homeowners, farmers, and businesses, limits future tax hikes, and makes the tax system fairer, more transparent, and easier to understand,” Braun said in a statement.

“Real property tax relief was a core promise of my Freedom and Opportunity Agenda and with the collaborative leadership of our legislators, we are delivering real savings and protections for taxpayers. I look forward to signing the bill as soon as I receive it,” the statement read.

The 27-22 tally came well ahead of an end-of-month deadline and followed a marathon day in the Senate chamber. Twelve Republicans joined Democrats in opposition: Sens. Ron Alting, Eric Bassler, Vaneta Becker, Mike Bohacek, Jim Buck, Cyndi Carrasco, Spencer Deery, Dan Dernulc, Aaron Freeman, Jim Tomes, Mike Young and Andy Zay

None of those senators spoke on the bill.

Senate Bill 1 would save homeowners a collective $1.2 billion in property taxes over three calendar years, from 2026 through 2028, according to a Thursday fiscal analysis. It does so largely by creating a credit for 10% off every homestead’s bill, up to $300 each.

That’s after House lawmakers on Wednesday made sweeping edits featuring the governor’s blessing and Senate input. It’s a far cry from Braun’s original plan.

Democrats discussed lost revenue for schools and communities that will force either local income tax hikes or severe service cuts.

Local units of government would lose a projected $1.5 billion over the three years, per the fiscal analysis. Public school corporations alone represent about half the anticipated loss, at $744 million — although Democrats contend other tax changes push that figure to almost $800 million.

“We’ve heard relief, relief, relief,” said Sen. Andrea Hunley, Indianapolis. “But the efforts that we have in Senate Bill 1 are complex, and I don’t feel like they go far enough, and I do think that they create winners and losers.”

But Republicans noted revenue still goes up for most units — just not as much as under current law.

For instance, the city of Fort Wayne would see its property tax revenue rise from $167 million in 2025 to $201 million in 2028 if no changes are made. Under Senate Bill 1, the city will see revenue rise from $167 million to $187 million in 2028.

” I want to make sure we know it’s not loss, it’s unrealized potential gain,” said Sen. Scott Baldwin, R-Noblesville.

Still, Democrats weren’t the only ones unhappy with the deal.

“NOBODY understands this thing … including me!” Lt. Gov. Micah Beckwith, Braun’s second-in-command, posted Saturday. “On that basis alone we can’t let this become law. The Gov needs to VETO this thing, call a special session and demand the legislature pass something that the average Hoosier can understand without hiring army of lawyers and accountants!!”

Debate focuses on local income taxes

Senators started debate on the bill at 10:35 p.m. A vote followed nearly two hours later at 12:18 a.m. Tuesday.

During the discourse, bill author Sen. Travis Holdman, R-Markle, emphasized that Indiana’s property taxes “are very complicated” — and that “it’s taken the legislature 50 years to make it as complicated as we possibly could” — but under this bill, two-thirds of homeowners will receive a lower bill in 2026 compared to 2025.

The legislation caps total local income tax rates for all counties to 2.9%, down from 3.75%. Municipalities would be authorized to impose rates up to 1.2% within that county total — a tool they have not had before. Under current law, they have to get county officials on board to nab a local income tax.

Indianapolis Democrat Sen. Greg Taylor said Hoosier taxpayers were promised relief on property tax bills, “but I guess we didn’t add the comma and say, ‘But you really end up paying more on your income tax.'” He worried that locals will be forced to cut essential services if they resist income tax hikes.

“When your city council comes to you and says, ‘What do you want us to do? Cut services or increase (local income taxes)?’… we’re going to say, ‘Well, we gave you an option,'” Taylor said.

“We know what the option is going to be. We’re going to cut services. You mark my words. You’re going to cut services,” he continued. “You think we’ve got road problems? You think we’ve got access to government service problems? Just wait.”

Holdman held that while higher local income taxes “may be the case in some situations,” raising those taxes remains optional.

Instead, he preferred for local governments to become “more efficient” before raising taxes.

“I think there are expenses that cities and towns and county governments have that they could trim their budgets,” Holdman added. “I think there needs to be a review of all expenditures at a local level to make sure that they’re spending their dollars wisely.”

Also under the bill, fixed-income seniors would get an additional $150 discount off their property tax bills stacked atop the $300 maximum available to the general population. Disabled veterans could also qualify for stackable credits of $150 and $250.

In exchange, lawmakers nixed assessed-value-based deductions for those populations.

Renters ‘left out’

Over three years, the bill would cut property taxes by about $25 million for apartments, almost $69 million for other residential properties, $116 million on farmland and $145 million on personal property. But bills for agricultural business and other real properties would rise by $63 million and $720 million, respectively.

That adds up to about $802 million in savings across other property types.

The overhauled legislation additionally phases in a major increase in the acquisition cost threshold for the business personal property tax exemption — from $80,000 to $2 million — and narrows application of the 30% depreciation floor. It previously would’ve phased the tax itself out by 2030 on anything purchased this year or later.

Still, Sen. Fady Qaddoura, D-Indianapolis, questioned why the bill does not directly address — or provide relief for — the 560,000 tenants across the state.

Holdman held that his measure deals with property taxes, which “tenants do not pay.”

Qaddoura disagreed.

“Tenants do pay property tax,” he said. “When you live in an apartment building or in a house, the landlord will pass all of these costs, including property taxes.”

Hunley further took issue with the inclusion of Senate Bill 518, a measure to require traditional schools to share property taxes with charters. Another provision dissolves the Union School Corporation.

“I think that we do need to talk about process and procedure, and the fact that this is the way that we’re going to do business from now on — that we can just simply amend into a piece of legislation the closure of an entire school district,” she said. “And that we can do that without regard for public hearing or process, and that we can just redraw new maps and new boundary lines for an entire school corporation, for families, for a whole community from up here on high in Marion County, and determine what’s best without true regard for collaboration with the community.”

Before the vote, Sen. Rodney Pol, D-Chesterton, reiterated that the legislation “is too big,” and that lawmakers “have forced too much into one bill.”

“As you shuffle the burden of taxes, there may be some that gets pushed to businesses. … but ultimately, we’re doing so at the expense of already struggling schools, struggling communities, renters and others that need us most,” he said. “There are multiple poison pills throughout this thing. And ultimately, school districts and local communities will have to make the toughest decisions that they’ve ever had to, at a time where things are just uncertain.”

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The Indiana Capital Chronicle is an independent, nonprofit news organization dedicated to giving Hoosiers a comprehensive look inside state government, policy and elections. The site combines daily coverage with in-depth scrutiny, political awareness and insightful commentary.

You can read the original version of the story here.

The post Indiana Senate sends finalized local property, income tax plan to governor appeared first on News Now Warsaw.

After days of silence, Gov. Mike Braun gave a thumbs up on a significant property tax amendment minutes before Republican leaders brought it to the House floor.

The measure passed on a 70-27 vote along party lines.

Braun made property taxes a cornerstone of his 2024 campaign, and had been conspicuously quiet after House leaders unveiled their plan Friday.

“I am grateful for the leadership of (House) Speaker Todd Huston and (Senate) President Pro Tem Rod Bray and for the ways they have partnered with us to deliver this meaningful tax relief to Hoosiers,” Braun said in a statement shared to X. “I encourage House members to support this amendment and urge the Senate to then take action quickly to get it to my desk for signature.”

The new version of  Senate Bill 1 will increase a credit applied to all homeowner bills to 10% or a maximum of $300, cumulatively saving homeowners $1.4 billion over the next three years. An earlier version had a $200 cap and saved homeowners $1.1 billion over three years. Additionally, the amended property tax bill softens its business personal property tax cuts and further drops local income tax limits.

“This amendment makes a good bill even better and provides even more relief to homeowners,” said Lizton Republican Rep. Jeff Thompson, who authored the amendment.

Thompson, who also sponsored the underlying Senate motion, said that two-thirds of homeowners will see reduced bills in 2026 when compared to 2025.

But Democrats again urged caution when voting on the large bill without knowing the full fiscal impact. The Legislative Services Agency doesn’t release fiscal notes on amendments until they are adopted.

“I just can’t vote on something that has so many uncertainties,” said Rep. Greg Porter, D-Indianapolis.

Democratic pushback

A handful of Democrats spoke against the amended bill, many of whom mentioned the changes to the business personal property tax as a major concern. Currently, small businesses with less than $80,000 in such property — which can include equipment, billboards and more — are exempt.

Before Wednesday, Senate Bill 1 would have halted the charge on purchases after this year, meaning the revenue to municipalities would gradually fall.

A 2024 study from the Indiana Chamber found that exempting the tax on new business personal property would reduce revenue by $1.2 billion for the state while eliminating the depreciation floor would shave away another $35 million.

In the amended property tax bill introduced on Wednesday, that $80,000 benchmark increases to $1 million next year and $2 million the year after.

“The government officials in our cities and towns (who) are going to be affected have not been in this conversation. There’s still concerns with what we have, even though this amendment does make a little bit better than what we had in committee,” said Rep. Mike Andrade, D-Munster. “… a lot of elected officials are concerned that they’re going to not be able to have this tool.”

House Speaker Todd Huston made a rare appeal from the floor, urging his colleagues to advance the motion to amend.

“This is historic taxpayer relief. Historic,” said the Fishers Republican. “… This is a complex system. We are making it a better, more transparent system for all — whether you’re a homeowner, a business or a farm. But we are, most of all, making it great for Hoosier families.”

After accepting Thompson’s edit, Republicans batted away over a dozen Democratic attempts to amend the bill, including ones that would grant more relief to renters, a first-time home buyer’s credit and one restricting the personal property tax language to only American corporations.

“The money is tight,” Thompson repeatedly told Democrats, referencing the state’s slim revenue growth predictions for the next two years.

In a statement, House Minority Leader Phil GiaQuinta called Senate Bill 1 “a tax hike in disguise.”

“Paying up to 4.1% in income taxes to your city and county on top of state and federal taxes is much more than the $300 max in ‘credit’ you could receive off your property tax bill in 2026,” said GiaQuinta, D-Fort Wayne. “Businesses still get a break, but working Hoosiers get crumbs. This is a bad deal for working Hoosier families, which is why House Democrats voted no on this plan.”

The bill must pass through the House one more time before the Senate takes action. That chamber can opt to accept the amended property tax bill or dissent, which would go against Braun’s wishes for a quick resolution.

Dissenting would send the bill back to a conference committee, where lawmakers would hammer out a final negotiation that both chambers could agree upon.

* * *

The Indiana Capital Chronicle is an independent, nonprofit news organization dedicated to giving Hoosiers a comprehensive look inside state government, policy and elections. The site combines daily coverage with in-depth scrutiny, political awareness and insightful commentary.

You can read the original version of the story here.

The post Braun gets more savings for homeowners in amended property tax plan appeared first on News Now Warsaw.

Whitney Downard
Indiana Capital Chronicle

Lawmakers introduced yet another plan for property taxes this week, pitching a proposal to save homeowners $1.1 billion over three years.

In comparison, homeowners would have seen nearly $1.3 billion in relief in 2026 alone under Gov. Mike Braun’s previous proposal.

In the atypical Friday afternoon press conference, Rep. Jeff Thompson said that 93-94% of homeowners would see lower property tax bills than they would with no action. But the majority of homeowners would pay less in 2026 than they did in 2025.

“We have two main goals in crafting this bill: deliver immediate relief to homeowners and reform the system to prevent the dramatic spikes in property taxes that we’ve seen in recent years,” said House Speaker Todd Huston. “Our amendment accomplishes both.”

The amendment to Senate Bill 1, set to be introduced on Monday, isn’t yet publicly available. Once adopted by a committee, the Legislative Services Agency will release an estimated fiscal note.

According to the two Republican leaders, all homestead property tax bills will get a 7.5% credit in perpetuity, up to $200, based on a calculation performed after accounting for property tax caps. Fixed-income seniors will see an additional $150 credit while disabled veterans will get an additional $250 credit.

“Now, every single veteran and every single senior will get a benefit if they qualify,” said Thompson, R-Lizton.

But one of the biggest benefits for the average homeowner, Huston said, would be improved transparency for taxpayers, who would be able to assess their bills on a Property Tax Transparency Portal.

“When we do a rate-based and non-levy-based system … I think the normal Hoosier homeowner can understand what their bill looks like. It’s not some algebraic equation,” said Huston, R-Fishers.

The plan for property taxes joins a handful of other efforts, including one from Gov. Mike Braun, Senate Republicans, a House Democrat and a previous Thompson pitch. Each proposal has varying impacts to homeowners and local units of government, which rely on revenue from property taxes to fund public safety, infrastructure and schools.

For instance, Braun’s plan would save homeowners the most money on their property taxes going forward but be a heavy hit to the budgets of school corporations, counties, cities and towns. Alternatively, plans that reduce that revenue loss have a small, nearly negligible impact on homeowner property taxes.

It’s not yet clear what the total estimated impact of those credits will be to local governments. Thompson, the chief budget architect in the House, said most units will still see additional revenue but smaller increases than they would without Senate Bill 1.

“They’re still going to be gaining dollars. If I recall, it’s about a 5.6% gain (under) current law. This will roughly cut that down to a little over 3%,” Thompson said. “So they’re still adding more dollars, just not as many new dollars.”

But Huston cautioned that some units, depending on their circumstances, could see losses simply because of the “complexity of the system,” pointing to local referendums and debt.

Similarly, homeowner tax bills vary significantly depending on a home’s value, the local tax rate and other factors.

“You could have the same home in the same county  — and built in the same year — and you’d have two wildly different property taxes,” Huston said. “… I wish I could stand up here and give you all the bare-bone specifics. I’d love to know what my property tax bill is going to look like in ‘26.”

The proposed amendment would also “rein in” locally held debt, though it’s not yet clear how the General Assembly would accomplish that. House Republicans reported that the state’s 2,000-plus local units of government hold a combined $53.4 billion in debt.

Such calculations will impact local schools, which would get a double-whammy revenue hit with the incorporation of Senate Bill 518 into the plan for property taxes. The current version would require schools to split their revenue with certain charter schools.

Under the new language for sharing property taxes, which isn’t yet available, Huston said changes for schools wouldn’t kick in until 2028 and would be phased in over four years.

Thompson also alluded to changes in the state’s personal business property tax, including a “very, very slow, gradual phase down” for purchases made after Jan. 1, 2025.

It’s uncertain whether the plan will be enough for the Hoosiers calling for relief. Last month, hundreds rallied to push lawmakers to adopt a plan closer to Braun’s proposal, pointing to tax jumps in recent years during the economic fallout of COVID-19.

Democratic Rep. Greg Porter said that big business would still be the winners in a Friday press release, criticizing the plan for not addressing home assessments that increase faster than business assessments.

“With roughly $1.1 billion saved over three years and about 1.9 million homesteads, each homeowner will save an average of close to $575 from 2026 to 2028,” Porter said in a statement. “… With an average property tax bill ranging from $1500 to $3000, a yearly credit of only $200 will fail to make a difference.”

He also denounced the lack of relief for renters as well as an increased reliance on local income taxes for municipalities to backfill losses.

“Our schools will lose money, especially with Senate Bill 518 rolled into the plan diverting property tax dollars to charter schools so the state can pay even less. This plan encourages local governments to raise their local income tax rate, so you’ll get more money in your right pocket but have to pay more out of your left,” Porter continued.

Braun threatened to veto earlier versions of the proposal, citing the need for homeowner relief. Still, Huston seemed comfortable with the current package.

“We feel very good about the trajectory that we’re on and we will continue to work with our partners on this and figure out where the best place to land the plane is,” said Huston.

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The Indiana Capital Chronicle is an independent, nonprofit news organization dedicated to giving Hoosiers a comprehensive look inside state government, policy and elections. The site combines daily coverage with in-depth scrutiny, political awareness and insightful commentary.

You can read the original version of the story here.

The post House Republican plan for property taxes to save homeowners $1.1B appeared first on News Now Warsaw.

Hundreds of irate property owners gathered at the Indiana Statehouse on St. Patrick’s Day to pressure lawmakers into adopting Gov. Mike Braun’s plan for tax cuts, led by popular conservative radio personalities Rob Kendall, Casey Daniels and Jason Hammer.

Speakers had to yell to be heard over the crowd, who called out legislators by name — including Senate Majority Leader Rodric Bray and Rep. Jeff Thompson — and threatened noncompliant politicians with a primary challenger in their next election.

“At the end of this hour, I don’t know what we can do (or) what we can change, but we can call out the weasels that do not have your interests in their interest,” challenged Hammer, who led several call-and-response chants. “If you’re a law-abiding taxpayer and you’re pissed off, on the count of three, make as much noise as you can!”

Hammer co-hosts the Hammer and Nigel Show on radio station WIBC while Kendall and Daniels headline Kendall and Casey, also on WIBC. All three pushed the property tax rally ahead of the Monday event.

Speakers adopted language from national Republican leaders like President Donald Trump and his key adviser Elon Musk, calling for the slashing of government through a DOGE-like entity.

Radio duo Kendall and Daniels explicitly called on lawmakers to adopt Braun’s tax plan, which has been criticized for the deep cuts schools would see alongside smaller — but significant — decreases for counties, cities and townships. Some officials testified earlier this month that they would have to abort plans to expand their fire departments or reduce law enforcement services due to anticipated cuts.

“I’m asking this state government to get back on track and run itself efficiently. It’s not like we’re asking locals and school districts to do anything more,” Braun told the crowd. “Government should be the most powerful at the local level, but they cannot be growing their enterprises faster than the economy grows.”

Braun has criticized schools for their spending, as seen in his property tax plan that would save homeowners a collective $1.3 billion but cost schools $536 million.

A former Dubois County school board member, Braun recalled an instance where the district considered replacing a $16,000 bench because of some peeling paint. Instead, another board member bought paint and hired a correction crew to paint it for $800.

“We’ll land this plane in a good place that gives real relief and keeps our governments healthy,” said Braun. “But if it isn’t for this (rally), they’re going to keep trying to push for nothing. And nothing isn’t good enough.”

More from the property tax rally

Lt. Gov. Micah Beckwith, who frequently tweeted about the rally ahead of Monday, said that he made the unusual decision to publicly campaign for his seat because “we are being taxed way too much.”

“I’ve heard countless stories from people today and throughout the last two years where their property taxes have increased over 50%, 60% and even 100% in one case,” Beckwith said at the property tax rally. “That is egregious and we need to stop it and we’re going to stop it.”

A trio of Republican house lawmakers called for the complete elimination of the state’s property tax system, echoing sentiments on signs distributed at the rally that read “Property tax is theft.”

“This is a radical idea for some, but what’s so radical about … getting rid of something unconstitutional?” Rep. Craig Haggard, R-Mooresville, said. “You were never meant by the forefathers to pay rent to the federal government, to the state government or to anybody else.”

Rep. Andrew Ireland, who represents a sliver of Marion County, specifically called out spending in Indianapolis on public transit, drag queen story hours at the library and public health investments, likened some of the pushback to changing the diaper of his newborn.

“… when these local leaders come to this building and they tell us, ‘There is nothing to cut. The sky is going to fall if you cut anything.’ It sure smells a lot like that green dirty diaper,” Ireland said.

One elected official from Marshall County said that the system was “so broken that I can’t cut your taxes locally.”

“The system should encourage responsible spending. It should fund the services that people care about but, today, it fails on both counts,” continued Jesse Bohannon, a county commissioner. “ “It punishes budget cutting and encourages aggressive spending. It encourages local governments to hoard money.”

He called for the “billions of dollars locked up” to be refunded to everyday taxpayers, saying government growth has outpaced inflation.

Background on property taxes

Three separate property tax plans have been introduced thus far at the Statehouse from Braun, Senate Republicans and Rep. Jeff Thompson, the House’s key budget architect and chair of the Ways and Means Committee.

Each takes a different approach to property taxes, balancing relief for homeowners with the budget needs of local units of government.

While Braun’s proposal offered the most tax relief, it also sharply reduced school budgets. Thompson’s pitch, on the other hand, had limited savings for homeowners and the smallest cuts for government services.

Braun floated the possibility that he would veto the Senate plan last month. Property tax rally attendees also urged Braun to call for a special session if lawmakers failed to deliver relief.

What will stay in the final version of the property tax bill remains to be seen, but both Republican legislative leaders appear to have gotten their marching orders from Braun on the end goal.

“I think Gov. Braun wants to get to a place where we can say that your property taxes will be lower next year in 2026 than they are in 2025,” Bray told reporters Thursday. “I think that’s a victory for Governor Braun, it’s a victory for us, it’s a victory for homeowners across the state of Indiana. That would be the first and foremost goal.”

House Speaker Todd Huston echoed that aim.

“The goal’s to try and have the ’26 property tax bill be less than the ’25 property tax bill. We’ll see if we can get there,” he told reporters.

When asked, Huston also said he was concerned about rent — noting that some of the increase is in property taxes.

Democrats were more critical.

“We need to provide some relief to Hoosiers … and then we make sure that we listen to our local governments who are saying, ‘Please, we rely on our property taxes to be able to pay for our police, fire, our schools,’” Senate Minority Leader Shelli Yoder said on Thursday. “And balancing those two are difficult, but we need to make sure that in the end, we get it right.”

Indiana Capital Chronicle Reporter Leslie Bonilla Muñiz contributed to this story.

* * *

The Indiana Capital Chronicle is an independent, nonprofit news organization dedicated to giving Hoosiers a comprehensive look inside state government, policy and elections. The site combines daily coverage with in-depth scrutiny, political awareness and insightful commentary.

You can read the original version of the story here.

The post Radio personalities headline property tax rally at Indiana Statehouse appeared first on News Now Warsaw.

WARSAW — State Sen. Ryan Mishler, one of the leading voices in crafting budgets and tax policy, didn’t have much good to say on Friday about property tax reform efforts in the state legislature.

Mishler pointed out what he called flaws in Gov. Mike Braun’s proposal, SB 1, and said a counter-proposal was way too complicated.

On top of that, he said he believes most Hoosiers don’t understand the plans.

One of the tenets of Braun's plan is to reset tax rates back several years to when they were less burdensome. But that goes against the legislative process of relying on market value.

Mishler said that would likely be decided in the court system.

“Will there be a challenge? Absolutely. It may hold up to a challenge, it may not. We never know about those things,” Mishler said.

He also derided a revamped bill that relied on wording from a previously considered HB 1402.

“It’s the most convoluted, complicated piece of legislation I’ve ever seen. And no one, zero people in that committee could explain it, which makes it more difficult. There are more formulas and things," Mishler said. "I thought I was a fairly intelligent guy, but there are only three or four things that I could finally get a grip on what they did."

Mishler was joined by State Reps. Craig Snow and David Abbott for a legislative update in Warsaw on Friday.

Snow represents much of Kosciusko County and part of Wabash County, and Abbott represents parts of Noble, Whitley, Elkhart and Kosciusko counties.

Mishler represents parts of Marshall, St. Joseph, Elkhart counties and a large chunk of Kosciusko County.

The legislative session has already moved into the second half of the calendar and is expected to conclude by the end of April.

Mishler said he would like to resurrect a past plan in which the homestead tax would be fully exempted in several years once the state retires a major pension debt.

Neither Snow nor Abbott had much to say about property tax reform.

Property tax reform, while the concept is popular with homeowners and others, has created substantial worry on the part of local elected leaders who say taxing units — including school districts, city government and county government — would face major shortfalls in revenue if approved.

Each lawmaker provided an update and then people in the audience were invited to ask questions.

Nobody in the audience offered any thoughts for or against property tax reform.

Both Snow and Mishler expressed some worry about the upcoming state revenue forecast, which will be released in a matter of weeks and provide insights into how much money the state can expect to have available.

That issue, Mishler said, will not be a factor in deciding property tax reform.

Snow and Abbott talked about the importance of improving water quality in Indiana lakes. In fact, both expressed a desire to work together on some projects that could dovetail with existing studies and insights involving the Lilly Center for Lakes and Streams at Grace College.

Abbott said Braun has already voiced support for such initiatives.

The “Third House” legislative updates are hosted by the Kosciusko Chamber of Commerce.

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A third property tax plan introduced on Wednesday would further protect local units of government from cuts to property tax bills, a change that would provide little tangible relief to the average homeowner.

Rep. Jeff Thompson, the leading Republican lawmaker on property taxes and the state budget, pitched a long-term vision for the state’s property tax system that would overhaul how the taxes are calculated. In particular, certain deductions for homesteads would be phased out and then replaced; business personal property tax floors would fall and the authorization of local income taxes would shift.

“If we keep what we’ve got we’ve got to expect the same result,” said Thompson, R-Lizton.

But while Thompson’s plan tackled many of the factors and simplified the overall process, direct relief for taxpayers would be small and instead focused on decreasing projected increases.

Thompson’s proposal joins competing visions from Gov. Mike Braun, who made property tax relief part of his campaign platform, and Senate Republicans.

Each version of the property tax plan has grown in complexity and length. Braun’s version was 46 pages compared to the Senate’s 91 pages.

Thompson’s plan is longer than both alternatives combined, clocking in at 228 pages.

But Thompson seemed confident that Wednesday’s version wouldn’t be the final property tax plan, saying the bill “sets the stage” for future action.

“We’re working on language to deal with both property tax rate and (local income tax) distribution right now,” Thompson said. “… I suspect you’re going to see some language to deal with that, because I’m quite aware of what’s going on and that’s not the way to operate.”

Thompson, who chairs the Ways and Means Committee, indicated that his committee would introduce another property tax plan in the coming weeks.

Comparing the three property tax proposals

Critics slammed Braun’s campaign proposal last year for its heavy toll on local units of government, especially counties, cities, towns and schools. Large portions of local budgets go to public services, such as fire protection, law enforcement and infrastructure.

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Under Braun’s plan, counties could expect to lose $211 million in the 2026 calendar year, while cities and towns would get $263 million less, followed by larger losses in 2027 and 2028.

Combined, those entities would see smaller reductions than schools, which account for 46%, or $536 million, of the total $1.15 billion local units of government would lose under Braun’s plan.

In contrast, the Senate property tax plan would only cut $239 million from local units of government, with one-quarter of that, or $61 million, coming from school corporations.

Budgets for counties would be smaller by $60 million while cities and towns would lose $50 million.

Thompson’s version has the smallest loss for schools at just $4 million. Initially, local units of government would see some small growth, with $79 million more available — mostly due to growth in “Other Real” property taxes. Cities and towns would see an additional $15 million in 2026 while counties would lose nearly $6 million under the House proposal.

But Braun’s plan is also the only one that would meaningfully impact the average homeowner’s property tax bill.

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Homesteaders would collectively see their bills drop by nearly $1.3 billion in 2026, compared to $91 million under the Senate plan and $147 million in the possible House proposal. Braun would also keep property taxes low through an annual cap on how much bills can grow. Under the Senate version, property tax bills for homeowners would also fall further in 2027 and 2028.

The House property tax plan, on the other hand, would increase homestead property taxes slightly in 2027 and 2028, but fall thereafter.

That increase, Thompson said in committee, comes because his version of the bill would repeal property tax credits.

Committee discussion and feedback

Some of the committee’s concern stemmed from concerns about the shifting tax burden, or when a cut on one property class — like homeowners — places a heavier burden on another group — such as businesses.

“You can only push it onto other taxing groups in so much as the (constitutional cap) allows you to do that. Then you’re going to try and backfill it with (local income taxes),” said Rep. Ben Smaltz, R-Auburn. “And I think I need to see some sort of fiscal, a very specific fiscal for different units, so you can tell what’s going to happen to them and how they’re going to fix that.”

This shift toward taxing homeowners was also a concern for members of the public.

“We are concerned that the property tax portions of this bill amounts to a narrowing of the tax base, which will keep rates high,” said Ryan Hoff, representing the Association of Indiana Counties. “We do not believe that local income tax should be relied upon as a replacement to fund revenue losses stemming from business tax cuts.”

A proposed phase-out on business personal property tax will have a disproportionate impact on small communities that rely largely on one large employer. If that company’s taxes fall, it could reduce the budget of that local government unit.

Hoff continued to say that such areas might have small or low-income resident populations, diminishing its ability to recoup revenue through income or homeowner property taxes.

David Ober, the Indiana Chamber’s vice president of taxation and public finance, acknowledged that changes to the business personal property tax rate were “a bit of a double edged sword.”

“Reducing the net assessed value is going to increase the rate, which then is paid by all other taxpayers. And so real property will feel an increase,” said Ober. “… but if you eliminate that 30% floor, it’s not like it goes down to zero. A lot of that will still sit in assessed value. It’s just going to be at a lower floor.”

At least one Democrat pointed to the legislature as the impetus behind rising property taxes, saying the General Assembly had failed to properly fund schools. Schools then used referendums or bonds to pay for rising utility, infrastructure and transportation costs, she said.

“I think it’s incumbent on us as a legislature to look at the fact that we have money and a surplus, but we’re forcing communities to take these referendums out and to rely on the referendums, and they will wonder why the property tax bills are so high for individuals,” said Cherrish Pryor, D-Indianapolis.

Pryor went on to say that “schools are going to be in dire straits if we don’t do something.”

Another committee member pushed for the state “to get out of the property tax game entirely” by 2030, saying alternative revenue sources could be used instead.

“I don’t think anybody in our right minds would look at the taxing structure that we have today… (and) hit the reset button to rewrite it the exact same way,” said Rep. J.D. Prescott, R-Union City. “It’s such a complicated mess. It would be great to simplify the system come up with a more fair and balanced tax structure.”

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The Indiana Capital Chronicle is an independent, nonprofit news organization dedicated to giving Hoosiers a comprehensive look inside state government, policy and elections. The site combines daily coverage with in-depth scrutiny, political awareness and insightful commentary.

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SYRACUSE — Uncertainty about state property tax reform by the General Assembly has led Wawasee School Corporation to pause plans to construct a new activity center.

Superintendent Dr. Steve Troyer and the Wawasee Community School Board announced a temporary pause on the student activity center project "To ensure responsible stewardship of taxpayer dollars."

This decision, announced in a news release, comes as state lawmakers consider property tax reform, which could create financial uncertainty for public school districts across Indiana, the news release said.

Plans for the activity center began two years ago and two public hearings on the issue were heald earlier this year.

The entire project, which includes other upgrades and the repaving of a parking lot, was expected to cost about $31 million.

Officials pointed to two bills that could significantly impact the district’s operations and debt service fund. 

Given these uncertainties, "WCSC has determined that it is prudent to delay further action on the project until the full impact of legislative changes is understood," the release states.

Moving forward with so many financial unknowns would be irresponsible, the statement said.

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