Senate approves ‘work in progress’ property tax reform legislation, sending it to House

Major property tax reform legislation that proponents call a “work in progress” advanced to the House Monday.

The measure is focused on helping older Hoosiers, disabled veterans and first-time home buyers. It also limits how much local governments can collect in property taxes each year.

Sen. Dan Dernulc (R-Highland) said he understands that property tax reform can’t hit local government budgets too hard.

“But I also hear from my constituents the need for tax relief,” Dernulc said. “So, we have to have that balancing act, if you will.”

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The Senate approved the bill 37 to 10, with Republicans and Democrats voting both for it and against it.

Some of those who voted no said the legislation doesn’t provide local governments with any replacement revenue to help offset budget losses. Others said it does nothing to help renters.

Sen. Mike Young (R-Indianapolis) said SB 1 doesn’t help anybody.

“The taxpayers I’ve heard from … they’re not in favor of it,” Young said. “They don’t like it and they don’t think they’re going to get any benefit out of this bill.”

Young said the full Senate should’ve had the chance to vote on Gov. Mike Braun’s proposal, which would’ve rolled every homeowners’ tax bill back to 2021 levels.

Brandon is our Statehouse bureau chief. Contact him at [email protected] or follow him on Twitter at @brandonjsmith5.