Allen County legislators: Legislation delivering robust property tax relief and reform to Hoosiers signed into law

Two-thirds of Hoosier homeowners will see a lower bill in 2026 than 2025

Posted by: Kylie Glatfelter  | Wednesday, April 16, 2025

STATEHOUSE (April 16, 2025) – Allen County legislators supported Senate Enrolled Act 1, advancing a robust package of property tax relief for Hoosier homeowners and long-term reforms. SEA 1 has now been signed into law.

Under Senate Enrolled Act 1, through a combination of credits and reforms, Hoosier homeowners will save $1.3 billion in property taxes over the next three years. Two-thirds of Hoosiers will see a lower property tax bill in 2026 than they did in 2025.

"This legislation delivers property tax relief to Hoosiers, especially in our rural communities where every dollar counts," said State Rep. Dave Heine (R-Fort Wayne), who is a member of the House Ways and Means Committee. "It's about supporting local homeowners and others who have been feeling the impact of rising property taxes."

SEA 1 includes the following property tax relief measures:

  • A 10% property tax credit up to $300 on all homestead property tax bills beginning in 2026.
  • Additional, stackable credits of $150 for fixed-income seniors and up to $400 for disabled veterans ($150 and $250 stackable credits for those who qualify).
  • Exempts more Hoosier small businesses from paying business personal property tax.
  • Saves farmers roughly $125 million over three years.

Additionally, it advances long-term reforms including:

  • Decreases the amount of total local income taxes that local governments can collect, reducing the cap from 3.75% to 2.9%, a reduction of $1.9 billion.
  • Puts stronger controls in place to rein in the $54.3 billion in local government debt.
  • Requires referenda to be held during general elections to align with higher voter turnout and increase transparency of referenda questions to better note the tax impact.
  • Creates a Property Tax Transparency Portal to allow taxpayers to compare their current tax bill with proposed tax rate changes.

"Under Senate Enrolled Act 1, Hoosier families will see short-term and long-term relief on their property taxes," said State Rep. Chris Judy (R-Fort Wayne), who is a member of the House Ways and Means Committee. "It's a strong step forward that benefits taxpayers today and helps secure long-term savings for the future, while also ensuring disabled veterans and seniors receive additional property tax relief. We're standing up for those who need assistance the most."

"This is a strong commonsense win for homeowners that offers real savings now and ensures lasting benefits into the future," said State Rep. Bob Morris (R-Fort Wayne). "Going forward, this legislation will deliver meaningful tax relief for Hoosiers statewide."

Visit iga.in.gov to follow the legislative session, which must conclude by April 29.

-30-

State Rep. Dave Heine (R-Fort Wayne) represents House
District 85, which includes a portion of Allen County.
Click here to download a high-resolution photo.

State Rep. Chris Judy (R-Fort Wayne) represents House District 83,
which includes portions of Allen and Whitley counties.
Click here to download a high-resolution photo.
 
State Rep. Bob Morris (R-Fort Wayne) represents House
District 84, which includes a portion of Allen County
Click here to download a high-resolution photo.