Gov. Braun to Sign Senate Bill 1 Into Law

The bill offers property tax relief to Hoosiers, but could impact property tax revenue that goes toward public schools.

Shutterstock photo.

INDIANAPOLIS - A property tax bill is heading to the governor's desk to be signed into law. 

On Monday, the Indiana Senate passed Senate Bill 1 by a vote of 27-22. 

Through a combination of credits and reforms, Hoosier homeowners would save $1.1 billion in property taxes over the next three years, according to House Republicans. Under the amendment, a majority of Hoosiers will pay less property tax in 2026 than 2025 and nearly all Hoosiers will see relief.

Learn more about the bill here.

Governor Braun released the following statement regarding the bill's passage:

"This is historic property tax relief. Senate Bill 1 cuts property taxes for most Hoosier homeowners, farmers, and businesses, limits future tax hikes, and makes the tax system fairer, more transparent, and easier to understand. Real property tax relief was a core promise of my Freedom and Opportunity Agenda and with the collaborative leadership of our legislators, we are delivering real savings and protections for taxpayers. I look forward to signing the bill as soon as I receive it."

While the bill will offer property tax relief for Hoosiers, it will also impact the amount of property tax revenue that goes toward public schools and will require traditional public schools to share local referendum dollars with certain charter schools. 

The Indiana State Teachers Association held a rally at the Statehouse on Monday in opposition of the bill. 

"The amended version of Senate Bill 1 now would only require districts to share property tax revenue raised for operating expenses with charter schools, eliminating the need to share money districts raise to pay for debt for expenses such as buildings," reads a statement from the ISTA. 

The Indiana Legislative Services Agency recently released a document showing the estimated property tax revenue changes each school district in Indiana could see over the next three calendar years based on the amended Senate Bill 1 passed by the Senate. 

Using Dearborn County School Corporations as an example, below is thhe estimated local property tax revenue changes for each school corporation over the next three calendar years.