State Rep. Tim O'Brien: Legislation delivering robust property tax relief and reform to Hoosiers signed into law

STATEHOUSE (April 21, 2025) – State Rep. Tim O'Brien (R-Evansville) 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.

"We heard from families, farmers and small business owners and the message was clear," O'Brien said. "They need relief, and SEA 1 delivers it in a responsible way for all Hoosiers, without burdening local government."

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.
• 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. Tim O'Brien (R-Evansville) represents House District 78,
which includes portions of Vanderburgh and Warrick counties.
Click here to download a high-resolution photo.