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It is axiomatic that the with dawn of a new year comes a fresh start — a do-over, or even a renewal of some sort
This “do-over” touches different facets of all of our lives, including the laws which may eventually govern us, and the start of 2025 is truly no different from the start of prior years, despite the difference in aesthetics between them. It appears from the flurry of proposed bills filed before the start of the Indiana General Assembly, lawmakers will be focused on trying to improve fiscal responsibility in 2025.
The Legislature officially reconvened Jan. 8. About 300 bills were filed before the start of the General Assembly; 12 of those bills aim to create or adjust property tax credits or deductions and institute freezes of tax bills, while others propose changes to gas, income and sales taxes. Bills will be formally introduced and assigned to committees beginning with the start of the 2025 session.
Senate Tax and Fiscal Policy Chair Travis Holdman, R-Markle, has advised that his caucus is ready to introduce between 12 and 15 property tax bills.
Plus, Gov. Mike Braun, in keeping with his campaign promises, has proposed a plan to slash property taxes. Under this plan, increases in property tax bills would be capped at 2% annually for seniors, low-income Hoosiers and families with children under 18.
Increases would be capped at 3% for all other property owners. Increases higher than those levels would require approval from voters, but it is unclear at this time how a referendum would address the different ways property taxes might increase. Additionally, under the proposed plan, homeowners with assessed values of more than $125,000 would see those amounts reduced by 60% under a revamped homestead deduction. Those with homes valued under $125,000 would be reduced by 60% deduction. Both would also receive the current standard deduction of $48,000.
Meanwhile, Sen. La Keisha Jackson, D-Indianapolis, has proposed a bill which aims to provide seniors who have owned their home for at least five years a $120,000 deduction to reduce their property’s assessed value.
Bills have also been introduced which, if passed, could reduce Hoosier’s income taxes. For example, HB 1018, authored by Rep. Kyle Pierce, R-Anderson, would create a tax credit to incentivize Hoosiers to repair homes more than 85 years old.
The credit would be deducted from a person’s state income taxes and would be equal to either 20% of the cost of renovation or 55% if the project involves pre-1940 wiring.
Democrat Sen. Lonnie Randolph’s SB 154 would increase the income tax credit for teachers to write off classroom supplies from $100 to $500. He also seeks to broaden a $1,000 per child tax credit meant for taxpayers who homeschool or send their children to private schools; his bill would allow taxpayers who send their kids to public schools to also claim the credit.
Taxes on certain retail goods is up for discussion as well. Republican Rep. Mark Genda’s HB 1042 proposes removing the sales tax on feminine hygiene products and adult diapers. The change, as estimated by the fiscal note, would reduce state sales tax revenue by $11 million in the first year. Sales tax totaled $10.4 billion in state revenue last fiscal year.
As you can see, legislators have their work cut out for them this year. Let’s hope they can get in there and get it done for the good of all of us here in the Hoosier state.•
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April M. Jay is a partner in the Indianapolis office of Kightlinger & Gray.
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