SB 1 / Chamber Neutral
Senate Bill 1, authored by Sen. Travis Holdman (R-Markle), is a key element of Governor Mike Braun’s legislative agenda, designed to provide broad property tax relief for Hoosier homeowners. The original bill sought to restructure Indiana’s property tax system with significant reforms, including a new formula for the homestead standard deduction. The bill also repealed the supplemental homestead deduction and introduced a maximum property tax liability credit for all taxable real property, with higher relief for homestead properties.
Additional provisions targeted greater transparency and taxpayer engagement. The bill required referendums on school and other controlled projects to be held only during general elections in even-numbered years. It also mandated that the Department of Local Government Finance develop a property tax transparency portal to allow taxpayers to compare current and projected tax liabilities and provide feedback.
However, significant changes were made to the bill last week by the Senate Tax and Fiscal Policy Committee, which removed major provisions from Braun’s initial proposal. The revised version of SB 1 offers more targeted relief to older Hoosiers and veterans, focusing on deferrals and deductions rather than direct credits. The changes significantly reduce the fiscal impact on local governments, which was estimated to be in excess of $1 billion statewide.
This prompted sharp responses from Governor Braun and Lieutenant Governor Beckwith, who expressed disappointment in the stripped-down version. Braun emphasized the importance of providing real relief for taxpayers and urged legislators to restore key elements of the bill, while Beckwith noted that meaningful relief is essential for maintaining affordability and fairness for Indiana families.
