INDIANAPOLIS – Indiana lawmakers have passed a bill that may reduce your upcoming increase in property taxes.
House Bill 1499 was approved by the Indiana General Assembly with almost unanimous support in the final hours of the legislative session. It’s now under Gov. Eric Holcomb’s consideration.
“Well over $100 million in tax savings, property tax savings to Hoosiers, and that was an extraordinarily important bill for us,” House Speaker Todd Huston (R-Fishers) told reporters shortly after the vote.
House lawmakers had proposed temporarily lowering the state’s 1% cap on property taxes. That didn’t make the final bill, but it does have other measures to give Hoosiers some relief.
That includes a temporary increase to the supplemental homestead tax deduction: For properties worth $600,000 or less, that rises from 35% to 40% for taxes payable next year. It’s 37.5% in 2025. The deductions are lower for homes of higher value.
The bill also expands eligibility for Hoosiers age 65 and older to qualify for additional deductions. Those would be adjusted based on cost of living increases applied for Social Security benefits.
“The biggest thing is for people just to remember when they do get the bill, make sure they’re getting all of the deductions they’re supposed to get,” said Andy Mattingly, COO of Forum Credit Union.
The savings for each homeowner would vary since property tax rates are different for each community.
Democrats supported the measure but argue more should have been done to help both homeowners and renters.
“While people who have homestead will be helped somewhat, renters are still going to be feeling the pinch,” said State Rep. Cherrish Pryor (D-Indianapolis).