INDIANAPOLIS (WLKI)- A proposal being promoted by several high-ranking Indiana Republican lawmakers would eliminate property taxes on owner-occupied homes, but the details of how it would work have not yet been released.
Senate Appropriations Committee Chair Ryan Mishler, Rep. Craig Snow and Sen. Chris Garten are promoting a "Property Tax Freedom" town hall and rally scheduled for Sept. 29 in Warsaw. The event's campaign material describes a plan to end property taxes on the home a person lives in.
The proposal could have far-reaching effects on local governments and public schools, which rely heavily on property tax revenue.
Owner-occupied homes accounted for nearly $4.1 billion, or 38%, of the $10.6 billion in statewide property taxes billed in 2025, according to a Legislative Services Agency report.
Local government leaders and interest groups say they are waiting for more information on how such a large revenue loss would be replaced.
David Bottorff, executive director of the Association of Indiana Counties, said the transition details would be critical for local units of government. Matt Greller, CEO of Accelerate Indiana Municipalities, said Mishler indicated the revenue would need to be replaced, possibly through additional local income tax authority.
Similar discussions have taken place before. Lawmakers studied eliminating property taxes in 2007 but did not move forward after estimates showed the state sales tax or income tax would likely need to double or more to replace the revenue.
Other property tax proposals have also been discussed, including Gov. Mike Braun's idea to eliminate home taxes for residents older than 65 who have paid off their mortgages.
The homeowner property tax proposal could become a major issue during Indiana's 2027 legislative session.
According to the Indiana Capital Chronicle.