Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Property»House Republicans Adopt New Property Tax Proposal Over Democrat Concerns – InkFreeNews.com
    Property

    House Republicans Adopt New Property Tax Proposal Over Democrat Concerns – InkFreeNews.com

    April 9, 20255 Mins Read


    Rep. Greg Porter, D-Indianapolis, speaks with reporters after a committee votes to adopt a new property tax proposal. Photo by Whitney Downard, Indiana Capital Chronicle.

    By Whitney Downard
    Indiana Capital Chronicle

    INDIANAPOLIS — A new property tax plan from Indiana House Republicans including big business breaks and increased discretion over local income taxes, prevailed over qualms from Democrats on Monday, April 7.

    It advanced to the House floor for further considerations after the 15-8 committee vote.

    Under a massive amendment accepted by the committee, municipalities could for the first time raise local income taxes at 1.2% — though total local income taxes for the county must fall under a 2.9% cap.

    The legislation would also phase out, by 2030, the business personal property tax on anything purchased this year or later.

    Democrats balked at voting for the 368-page amendment without any fiscal foresight. The Legislative Services Agency doesn’t draft fiscal notes on amendments until they’re adopted.

    Rep. Greg Porter, D-Indianapolis, said, “We still have a lot of movement on it to get it to the point that we can even entertain it, as Democrats.”

    Amendment author Rep. Jeff Thompson, R-Lizton, said it balances local government funding needs with relief for homeowners.

    Veterans will qualify for a $250 credit toward their bills on top of that estimated $200 average credit. Fixed-income seniors will see another $100 credit. Currently, both groups may qualify for deductions to their property taxes.

    In total, Republicans said homeowners would save $1.1 billion over three years through a “decrease on the increase” in revenue that local units of government are expected to see in coming years. Thompson said that, without action, locals would see an estimated 5.3% revenue growth.

    Under the new property tax plan, that growth will fall to 3%, he continued, higher than the state’s projected revenue growth.

    But Democratic committee members criticized the plan for falling short, saying it further benefitted businesses at the expense of homeowners and that relief should be targeted for the most vulnerable Hoosiers.

    As of 5:40 p.m. on Monday, no new fiscal analysis had been posted to the General Assembly website.

    The Business Personal Property Tax

    The business community notched a long-fought win under the new property tax proposal, phasing out a charge placed on business personal property, which can include equipment, billboards and more. Small businesses with less than $80,000 in such property are already exempt.

    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.

    But some analysis has found that homeowners have seen a disproportionate increase in their share of the overall property tax burden when compared to businesses, an argument that appeared to resonate with Democrats.

    Property tax caps apply differently depending on the land’s use, whether it’s farming, housing or corporate. Homes fall under the 1% cap while businesses generally fall under the 3% cap.

    Taxes for properties that fall into the non-homestead categories, which don’t have the same market value assessment triggers, have grown at a flatter rate, Rep. Chris Campbell, D-West Lafayette said.

    Local Income Taxes And Schools

    Notably, the state is in the midst of a multi-year effort to lower its income tax rate, from 3.05% in 2024 to 2.9% in 2027. A bill headed for Braun’s desk would allow that rate to fall further after 2030, dropping 0.05% if revenue collections exceed 2.5% growth in the four preceding years.

    Rep. Jeff Thompson, R-Lizton, responds to a question on Feb. 6. Photo by Whitney Downard, Indiana Capital Chronicle.

    But that overall rate doesn’t account for the variance between counties.

    The Tax Foundation reports that even as the statewide rate falls, local income taxes have climbed. Between 2014 and 2025, the state rate fell from 3.4% to 3% — but the local rate grew from 1.4% to 1.72%.

    Under the newly amended bill, the total maximum rate would drop from 3.75% to 2.9% for most counties. An earlier version of this story said it would increase, but that was only one portion of the three components making up the local income tax: property tax relief, expenditure and special purpose.The expenditure category will rise to 2.9% but the other two categories will eventually expire.

    The municipal tax of 1.2% is within that rate, staffers said.

    The possibility of increased local income taxes negated potential property tax savings to Democrat Rep. Tonya Pfaff, of Terre Haute.

    But one taxing entity won’t be able to impose a local income tax — even though school corporations will likely lose out on funding.

    One of the explicit targets for the GOP authors was the use of debt in communities, specifically at school corporations. A Friday release said that local governments held $54.3 billion but didn’t break that number down further.

    Funding referendums, for both schools and locals, will be moved to the general election, which has a higher turnout rate than a primary or special election. Schools previously objected to such a requirement, noting that the school year doesn’t align with the election calendar.

    The bill, according to Thompson, will also incorporate elements of Senate Bill 518, which prompted a handful of protesters on Monday. The original version would require traditional schools to split their revenue with charter schools.

    The updated language also dissolves the Union School Corporation, which has thousands of virtual students alongside a small physical campus. However, Thompson said that dissolution doesn’t occur until 2027, giving parents time to find other options.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Controversial property developer Matthew Doyle and his wife Kelsea sell their Sydney home for $2.8million

    Property

    NJ among states with highest property taxes. Here’s where it ranks

    Property

    What are the most dangerous cities in Louisiana? Study shows 10 crime rates

    Property

    ‘We felt like UK had let us down so moved to £23,400 house in Bulgaria’

    Property

    Massive 2ft rat discovered in council property sparks urgent warning

    Property

    United Hampshire US Reit acquires freehold Pennsylvania shopping centre for US$16.4 million

    Property
    Leave A Reply Cancel Reply

    Top Picks
    Commodities

    Low Carbon et Danske Commodities signent un accord d’équilibrage au Royaume-Uni

    Cryptocurrency

    The Future of Multi-Currency Casinos: Integrating Bitcoin

    Precious Metal

    Man arrested after trying to steal copper piping from a Pueblo home

    Editors Picks

    Flutterwave de nouveau classée parmi les 100 meilleures entreprises mondiales de paiements transfrontaliers

    May 13, 2025

    SSE Launches Ireland’s First Ultra-Rapid EV Charging Hub

    August 25, 2024

    Viva Technology 2025

    May 5, 2025

    Gen Z & Millennials Lead Europe’s Crypto Adoption, Survey Shows

    August 9, 2024
    What's Hot

    Zambia : Africa’s Agricultural Potential: A Paradox of Opportunity

    February 17, 2025

    Louisiana’s insurance crisis expected to hang over real estate market in the coming year

    October 10, 2024

    Cryptocurrency regulation is clear, and BJMINING cloud mining is gaining popularity

    July 16, 2025
    Our Picks

    Vladimir Putin Reveals BRICS Plan To Adopt Bitcoin And XRP

    October 18, 2024

    What is the future of Europe’s Petrochemical industry?

    October 23, 2024

    Telegram Founder Pavel Durov’s Arrest In France Sparks Reactions From Ethereum Creator Vitalik Buterin And Tron Founder Justin Sun – Grayscale Ethereum Mini Trust (ETH) Common units of fractional undivided beneficial interest (ARCA:ETH)

    August 26, 2024
    Weekly Top

    Buying in metals, auto stocks takes Sensex above 81K

    August 4, 2025

    Ukraine’s agricultural imports up by 10% in H1 2025 – IAE

    August 4, 2025

    Copper climbs – Markets – Business Recorder

    August 4, 2025
    Editor's Pick

    Le négociant en énergie Danske Commodities affiche une chute de 48 % de ses bénéfices en 2024

    April 9, 2025

    Special Dividend, Bonus & Stock Split: Bajaj Finance Shares In Focus Ahead Of Board Meet

    April 23, 2025

    The copper tradeoff: Protecting today’s lands versus preserving tomorrow’s climate

    August 27, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.