Property Tax Relief:
Fair, Far Reaching, and Final
Governor Mitch Daniels, with unprecedented bipartisan support from the Indiana House of Representatives and the Indiana Senate have passed historic legislation that will provide significant property tax relief now and permanent protection against future property tax increases.
This year, Hoosiers will have an average property tax cut of more than 30 percent; a total of $870 million in relief will be provided. Beginning in 2010, homeowner property taxes will be capped at 1 percent of a home’s assessed value, apartments and agriculture land will be capped at 2 percent of assessed value, and business property will be capped at 3 percent of assessed value. Once fully implemented, the plan delivers $1.72 in tax cuts for each $1 of new sales tax.
The plan includes the four elements the governor said were critical last October, when he introduced a comprehensive property tax plan: immediate and significant relief; permanent protection; limits on local government spending; and improved accuracy and fairness in the assessment of property value.
