Legislative Accomplishments - State Sen. Brian Buchanan

MAJOR TAX CUTS FOR HOOSIERS

I was proud to support major tax cuts during the 2023 legislative session. Most importantly, Indiana's income tax will drop to 2.9% over the next four years. This permanent tax cut is expected to save Hoosiers over $1 billion by 2027, including more than $100 million in 2024 alone.

In addition:

  • Indiana doubled the income tax deduction parents can claim for a new child.

  • Members of the Armed Forces and National Guard will be totally exempt from state income tax on their military pay starting in 2024.

  • Hoosier businesses, especially small businesses, will see over $50 million in federal tax savings through a new law making more LLCs and S corps eligible for a federal tax deduction already available to larger corporations.

  • Indiana coupled the earned income tax credit to the federal credit requirements as of Jan. 1, 2023, which will make it easier for families to claim the credit in Indiana and save them an estimated $20 million per year.

  • Going forward, the General Assembly will review our entire state and local tax system and consider ways to lower the income tax and/or property taxes on homes.

PROPERTY TAX RELIEF FOR HOOSIERS

While property tax rates are set by local government officials, not the Indiana General Assembly, it is important to make sure Indiana's tax system is working fairly for Hoosiers. During the recent legislative session, I supported several new laws to help reform our state's property tax system.

  • One new law gives counties the option to limit how much property taxes can increase from year to year for moderate-income homeowners who have lived in their homes for at least 10 years. The goal is to help homeowners who bought an affordable home on a fixed income years ago, and the home value has increased substantially over time.

  • HEA 1499 temporarily increases the supplemental homestead deduction for the next two years and lowers the cap on how much property-tax revenue can grow. If home values continue to remain at the current elevated levels, this will help reduce the tax burden for Hoosier homeowners in 2024 and 2025. Based on current circumstances, it's estimated this change will save homeowners $110 million statewide next year compared to what they would pay without this new law.

  • That same new law also expands eligibility for the property-tax deduction and property-tax credit for senior-citizen homeowners. Indiana law allows eligible senior citizens to deduct up to $14,000 of their home's value from property taxation and caps the annual growth of their property-tax bills at 2%. To receive these benefits, a senior must be on a fixed income. HEA 1499 allows the income limit for these benefits to grow every year based on the cost-of-living increase for Social Security, to help seniors who initially qualify not lose eligibility as their retirement income grows.

  • SEA 325 will reduce property-tax bills for outbuildings and improvements on a person's homestead property, such as decks, patios, gazebos and pools. These structures will now be subject to a lower property-tax cap, and many taxpayers will be able to apply the homestead deduction to these structures.

  • Another new law makes the property-tax appeals process more taxpayer-friendly by saying that if you appeal your home's assessment, the assessed value of your property cannot go up as a result of the appeal. In other words, if you successfully appeal, your assessment will go down. But if your appeal fails, the worst-case scenario would be your assessment stays at the amount you initially challenged.

SUPPORTING ALL STUDENTS

Indiana's new state budget invests in both public schools and educational choice for families. Under our budget, funding follows the child because we want taxpayer dollars to go toward teaching children in the learning environment that best suits them.

Over the next two years, K-12 education in Indiana will receive $2.9 billion in increased funding. While we won't know how much any school receives until enrollment counts are completed, the nonpartisan projections done at the time the state budget passed estimate that traditional public schools will serve 88% of students and receive 90% of the state money, vouchers 8.5% of students and 6% of the money, and charter schools 3.5% of students and 4% of the money.


Here are some of the ways Indiana's new budget expands educational options for families.

  • Almost every child in Indiana is now eligible for our state's Choice Scholarship Program to help cover the cost of attending a non-public school in their community. Any child from a family with a household income below 400% of the amount to qualify for school lunch assistance is now eligible. Find out more about the Choice Scholarship Program here.

  • Until now, students at public charter schools were at a significant local funding disadvantage because charters did not have a permanent funding source for building and transportation costs. The new budget allows charter schools in some of Indiana's most populated areas (Lake, Marion, St. Joseph and Vanderburgh counties) to receive a share of local property tax revenue to offset those costs.

  • Indiana is continuing to offer customizable educational opportunities to special-needs students through the Education Scholarship Account Program. High schoolers seeking to participate in on-the-job learning activities can benefit from the same flexibility through the new Career Scholarship Account Program. Both programs provide families with state dollars in a dedicated account that can be used for approved educational purposes.

EXPANDING MENTAL HEALTH RESOURCES

Mental health is an issue affecting many individuals, families and communities. According to the Richard M. Fairbanks School of Public Health, approximately 22% of Hoosiers experience mental illness each year, and half with serious mental illness go untreated. That's why Indiana's new state budget allocates an additional $100 million for mental health resources. This new funding is being used to lay the groundwork to expand the number of certified community behavioral health clinics throughout Indiana and increase crisis response services, which is a Senate Republican priority.

Hoosiers should also be aware of the following resources.

  • BeWellIndiana is a free confidential resource to call if an individual is feeling stressed, anxious, overwhelmed or alone. Simply dial 2-1-1 to be connected to a crisis counselor.