State Rep. J.D. Prescott: Legislation delivering robust property tax relief and reform to Hoosiers signed into law

STATEHOUSE (April 17, 2025) – State Rep. J.D. Prescott (R-Union City) 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 SEA 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 Hoosier homeowners will see a lower property tax bill in 2026 than they did in 2025.

“This legislation will deliver much needed tax relief for the majority of homeowners across the state," Prescott said. "These cuts are also being done in responsible manner that does not shift more of the tax burden to agricultural. I look forward to building on our success over future legislative sessions.”

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.

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

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State Rep. J.D. Prescott (R-Union City) represents House District 33,
which includes all of Blackford and Randolph counties,
and portions of Delaware, Henry and Jay counties.
Click here to download a high-resolution photo.