On Thursday afternoon, the Indiana House passed an amended version of Senate Bill 1 by a 65-29 vote. The bill not only provides $1.4 billion in property tax relief to Hoosier homeowners over the next three years, but $140 million in savings for Indiana’s farmland owners over that same period as well.
“It’s only ten percent of what homeowners receive, but it’s moving in the right direction,” says State Rep. Kendell Culp (R-Rensselaer).
In a post on social media after the vote, Culp explained the details of the property tax relief and reform bill as it impacts Indiana’s homeowners and farmland owners.
“[Indiana homeowners] will get up to a 10-percent deduction or a $300 maximum cap taken off the bottom of their bill. So, if your [property tax] bill for your home is $2,000, then you will get to save $200,” says State Rep. Kendell Culp (R-Rensselaer).
“Also, we will phase in a larger deduction, so your basic Homestead Exemption goes away, and you’ll get two-thirds of the value of your home deducted off of your bill,” he says.
Culp adds that the bill also includes property tax relief for farmland owners, but not nearly as much as he would have liked to have seen.
“In the farmland formula, they will take the capitalization rate and move that from 8 percent to 9 percent. That will cause some relief for farmers in the next three years of $140 million savings. Phasing in, we’ll also have a one-third deduction of the assessed value of farmland deducted off,” according to Culp.
“I don’t agree with everything with Senate Bill 1, but we look at this as a whole, it’s a big win for property taxpayers,” added Culp, whose original bill (House Bill 1192) sought to move the capitalization rate to 10 percent.
After the House vote, Governor Mike Braun (R-IN) posted the following statement on X:
“SB 1 offers meaningful tax relief for Hoosiers. The plan to CUT, CAP, and REFORM means relief now and systemic changes for the future to protect taxpayers. Thank you to the House for their hard work and I look forward to the Senate sending this to my desk for signature next week!”
The bill now heads back to the Indiana Senate for final approval.
CLICK HERE to watch State Rep. Kendell Culp’s post on social media offering further details of Senate Bill 1.
