By State Sen. Daryl Schmitt (R-Jasper)
Since our state's founding more than 200 years ago, Hoosier farmers have cultivated the ground and helped create one of the strongest agricultural industries in the nation.
Here in Indiana, agriculture contributes more than $35 billion to our economy each year, and the state is home to more than 53,000 farms.
As a farmer myself, I know how important it is for farmers to find ways to save money.
During the 2025 legislative session, the Indiana General Assembly passed a law to give Hoosier farmers property tax relief.
Senate Enrolled Act 1 makes a two-year adjustment to the agricultural land assessment formula, which reduces the assessed value of farmland by raising the maximum capitalization rate in the formula from 8% to 9%. The higher the capitalization rate, the lower the assessed value on farmland.
The new law also phases in new property tax deductions for agriculture land worth one-third of the land's assessed value beginning in 2031. This phase-in process will begin in 2026 and grow each year over the following five years.
Local governments will also need to have a cooling off period before replacing expiring debt with new debt that would need to be paid back with higher property taxes. This will allow taxpayers to see a reduction in their property taxes for at least one year before local officials could pursue new debt.
Senate Enrolled Act 1 has been signed by the governor and will begin helping lower Hoosiers' property taxes next year.
As always, constituents can reach out to me with any questions or concerns by email at s48@iga.in.gov or by phone at 1-800-382-9467.
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State Sen. Daryl Schmitt (R-Jasper) represents Senate District 48,
which includes Crawford, Dubois, Gibson, Perry, Pike and Spencer counties.
Click here to download a high-resolution photo.
