Northeast Indiana legislators: Legislation delivering robust property tax relief and reform to Hoosiers signed into law

STATEHOUSE (April 17, 2025) – Northeast Indiana 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 brings relief to property owners and puts the taxpayers' money back where it belongs, in their pocket," said State Rep. Ben Smaltz (R-Auburn), member of the House Ways and Means Committee. "It's a positive step toward helping homeowners today and in the future, while still delivering the services they want and need."

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.

"Senate Enrolled Act 1 is a win for our communities by bringing additional property tax relief and more transparency to the system," said State Rep. David Abbott (R-Rome City). "It will help homeowners, farmers and small business owners in the short term and bring needed reforms long term."

"Hoosier families have been struggling with rising property taxes and relief is coming," said State Rep. Tony Isa (R-Angola). "This legislation brings real savings to nearly every Hoosier in the state."

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

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State Rep. Ben Smaltz (R-Auburn) represents House District 52, which
includes all of DeKalb County, and portions of Noble and Steuben counties.
Click here to download a high-resolution photo. 

State Rep. David Abbott (R-Rome City) represents House District 18, which
includes portions of Elkhart, Kosciusko, Noble and Whitley counties.
Click here to download a high-resolution photo.

State Rep. Tony Isa (R-Angola) represents House District 51,
which includes all of LaGrange County and a portion of Steuben County.
Click here to download a high-resolution photo.