Two Indiana mayors recently testified to lawmakers about the potential impact of Governor Mike Braun’s proposed property tax reform. The reform, which would allow homeowners to choose between a 60% homestead deduction or resetting their tax bill to 2021 levels, has been met with concerns about significant cuts to essential services, particularly public safety. Property tax rates have surged in recent years, with data showing steep increases for homeowners in the coming years. The proposed reform could result in over $1 billion in losses for local governments each year.
Mayors Sue Finkam and Brandon Sakbun emphasized the potential cuts to essential services in their cities if the reform is implemented as is. Sakbun warned that his city of Terre Haute would have to reduce its workforce by 10-15% due to the impact on public safety services, which make up 82% of the city’s property tax revenue. Finkam highlighted the potential loss of $26 million for Carmel, impacting services such as fire protection and emergency medical services.
Senator Travis Holdman, the bill’s author, plans to file an amendment based on feedback received during the hearing, with a possible committee vote next week. Governor Braun expressed willingness to work with local government leaders to minimize the impact on services and ensure relief for homeowners who have seen significant tax increases in recent years. Discussions on the reform are ongoing as lawmakers consider the implications for local communities and essential services.
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