Wednesday, July 5, 2023
Indiana is one of the most affordable places to live in the country, with a lower cost of living than the national average. However, many Hoosier communities continue to deal with high housing prices and shortages because of rising inflation and market values.
Earlier this year, Senate Republicans supported major tax cuts that are projected to save Hoosiers about $109 million in property taxes and more than $100 million in income taxes in 2024, putting more money back in Hoosiers' pockets.
Market values have also caused many to see a significant increase in their property taxes this year. Low-income senior citizens who live on fixed incomes are arguably the hardest hit by property tax increases. House Enrolled Act 1499 expands property-tax deduction and property-tax credit eligibility for senior citizens who own their homes. This will increase the eligibility for an estimated 9,000 more seniors to receive the over-65 homestead deduction and credit.
Senate Enrolled Act 3, a Senate Republican priority bill, created the State and Local Tax Review Task Force. During the coming months, this task force will study Indiana's tax system and consider ways to lower property and income taxes.
In the new 2024-25 state budget, the General Assembly appropriated $5 million for homelessness prevention grants to help Hoosiers struggling to find and keep housing, and $75 million for the Residential Housing Infrastructure Assistance Program to spur housing development in Indiana communities.
The Residential Housing Infrastructure Assistance Program will offer loans to local governments to pay for infrastructure needed to support new housing development. This program prioritizes funding for rural communities and municipal governments that have enacted policies to support affordable housing.
The General Assembly also approved Senate Enrolled Act 325, which will expand the definition of a homestead for the purposes of the homestead standard property tax deduction. The bill will allow a home, one attached or detached garage and one additional building not being used for commercial purposes on a one-acre parcel of land, to be considered part of a homestead. SEA 325 also makes structures like decks, patios, gazebos and pools eligible for the 1% property tax cap, reducing the bills on these types of properties.
Lawmakers worked hard this year to pass common-sense legislation aimed at keeping a roof over Hoosiers' heads, and we will continue to consider and support measures to make housing more affordable for years to come.
