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Request a DemoGov. Holcomb signs property tax relief bill, but don’t get excited — yet
Gov. Eric Holcomb signed a complex 50-page bill Thursday that would provide some property tax relief for homeowners amid rapidly rising tax bills — but largely not until 2024.
House Bill 1499 could save homeowners across Indiana more than $100 million in 2024, according to a fiscal analysis performed by the Legislative Services Agency. But some Democrats critiqued Republicans for not providing more relief sooner. The new law won’t impact property taxes that are due this month.
Still it passed both chambers, receiving only one no vote.
“We know right now from data that we’re going to see more than likely a repeat again in 2024,” said bill author Rep. Jeff Thompson, R-Lizton, “and this is the time to take care of homeowners in the following year.”
What the new law does
The final bill does the following:
- It limits how much local governments’ budgets can grow in 2024 and 2025, which curbs how much total costs get passed onto taxpayers.
- The legislation temporarily increases the supplemental homestead deduction for property taxes due in 2024 and 2025, which means Hoosiers will pay less in property taxes on their primary home.
- The bill allows counties to provide additional property tax relief if the county’s fiscal body chooses to as early as this fall.
- It enables more Hoosiers 65 years and older to qualify for a deduction from the assessed value of their home, which is used to calculate how much they owe in property taxes. Under the bill, there will be a cost of living increase each year to the income ceiling for determining who qualifies for the deduction.
- More Hoosiers 65 years and older would also qualify for an additional tax credit.
- The legislation clarifies the property tax appeals process.
- The bill also limits the amount by which a school corporation’s existing operating referendum tax levy can increase in 2024.
Some of the tax burden would be shifted onto other property taxpayers in the short term. In 2024, for example, the total tax collection on business equipment is expected to increase by $39 million in 2024 due to the property tax changes in the bill. But by 2025, all property classes will start to see the benefit.
Local governments would lose out on a combined $93 million in 2024 and 2025 due to the changes and more in future years, with school corporations experiencing the brunt of the impact.
Why it matters
Residential property tax liability was expected to increase by more than 18% on average across the state this year, according to an analysis by the Association of Indiana Counties and Policy Analytics.
That’s due in large part to rising assessed values of properties, but there are other factors as well.
How much your bill jumped depends on where you live. In terms of total tax liability, 16 counties were expected to have totals that increase by more than 8% year over year, including Marion, Vanderburgh, Hamilton, Delaware and St. Joseph. That includes all property types, so homeowners in those counties likely experienced even larger increases.
It’s probable that likely property taxes will continue to increase next year.
Does it go far enough?
Republican legislative leaders were hesitant to dramatically impact property taxes, because property taxes go entirely to local governments, not the state.
Democrats were hoping for more. The state, for example, could have provided relief to homeowners and backfilled local governments’ budgets with money from the state’s coffers. The state opted not to do that when crafting the state budget.
An initial version of HB 1499 also included a provision that would have lowered the property tax caps for homeowners, resulting in more savings. That was stripped from the final bill.
“Homeowners really need some help,” said Cherrish Pryor, D-Indianapolis. “I wish we had done a little bit more for them, but the one thing I just really don’t want people to do and that is to lose their home because they cannot afford their home or they can’t pay their property taxes.”
Contact Kaitlin Lange on Twitter @kaitlin_lange or at [email protected].
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Header image: Property tax bills have increased across the state. (Credit: Brittney Phan)
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$15B in 72 hours: ‘Our economy is on fire,’ says Commerce chief
A banner week for investment within Indiana has capped off the state’s biggest financial quarter in recent history, as three major companies agreed to deals estimated to bring in billions of dollars.
The state has long advertised itself as business-friendly, and its chief executive appeared thrilled by the week’s news.
“This is about $15 billion in about 72 hours,” Gov. Eric Holcomb told reporters on Friday. “This used to take four years to achieve.”
One announced project, an $11 billion Amazon Web Services data center in north-central Indiana, is the biggest single investment in the state’s history.
Google also broke ground on a $2 billion data center near Fort Wayne, while Toyota announced a $1.4 billion investment in its Princeton plant.
“Our economy is on fire,” Secretary of Commerce David Rosenberg said.
His agency, the Indiana Economic Development Corp., negotiated the deals. The state is offering millions of dollars in tax incentives in order to create some 1,500 new jobs.
“These industries bring generational change for families, putting more money in their pockets and allowing them the opportunity to have a better quality of life on their own,” Rosenberg said.
The projects
Amazon’s new data center will be built near New Carlisle. It’s expected to bring in at least 1,000 new jobs in the artificial intelligence and cloud storage sectors. No timetable for completion of the project was given.
According to Amazon, the company has invested $21.5 billion in Indiana since 2010, creating 26,000 full- and part-time jobs.
Google’s new data center will hire up to 200 new workers, the tech giant said, “in the coming years.”
Toyota will build a new assembly line that will assemble battery-operated SUVs by the end of 2025. It expects to add up to 340 new jobs to the plant, which Toyota said now employs more than 7,500.
The company has spent $8 billion on the Princeton plant since breaking ground in 1996, Toyota said.
The new projects’ figures represent early estimates and could change as they move forward.
Incentives aren’t the only factor
Rosenberg praised the Indiana General Assembly for passing legislation that allows the state to offer sales tax exemptions as a lure for new businesses. Both Amazon and Google will receive such boosts, and the Amazon project could receive up to $100 million in additional credits based on various incentives.
But Rosenberg stressed tax breaks are only part of the equation as the state looks to compete internationally.
“We don’t have to have the highest offer because we bring the university partners, the state and local governments, utilities — everyone around the table to make sure that company has what they need,” he said.
The Google project, for example, includes partnerships with Ivy Tech Community College on a new job training program and Indiana Michigan Power to bring clean energy resources to the local grid.
Recruiting new industries
Rosenberg said tech recruitment has been a particular focus for the IEDC, as Indiana is looking to provide an “ecosystem” for these companies to thrive off one another. The state’s semiconductor facilities will provide the materials needed for these new data centers, he noted.
Recruiting new business takes anywhere between six months to several years. Zoning, road construction, utilities and more need to be worked out ahead of time.
The IEDC has been on a hot streak, Rosenberg said. During the agency’s first 11 years, it secured just under $50 billion in new projects. It has now pulled in more than $71 billion since the beginning of 2022.
In the first four months of 2024, $20.68 billion has been pledged to projects in Indiana — the most for a quarter since IEDC’s founding in 2005.
‘Strong partners for the Indiana economy’
“The key is that these investments represent long-lasting and continued commitment to being strong partners for the Indiana economy,” said Andrew Butters, an associate professor of business economics and public policy at Indiana University’s Kelley School of Business.
Large companies came out of the pandemic looking to reorient their supply chains, Butters said, and some states have reaped the benefits of projects that might have previously moved overseas.
Indiana has been able to compete by selling its location, workforce, labor force participation in addition to offering incentives, Butters said.
“I would not be shocked to see more of these as the state attempts to transition toward more high-tech and high-skill industries,” Butters said.
Contact Rory Appleton on X at @roryehappleton or email him at [email protected].
6 races to watch in the Indiana primary election
The first openly competitive contest for the Republican gubernatorial nomination in a generation will end with Tuesday’s primary election, as will crowded races for several open congressional seats.
The primary won’t officially decide any political race — only the Nov. 5 general election can do that. But Republicans hold major advantages in statewide and many district-level contests, and who secures which nominations will go a long way toward deciding who may lead the state in the years to come.
>> Related: How does voting by political party work in Indiana?
Here are six key primary contests to watch on election night.
Governor
The race to be Indiana’s next chief executive has been perhaps the most noteworthy of the election cycle, with six Republicans bringing a variety of experience and outsider credentials to the competition.
Sen. Mike Braun has led in the polls from day one, including running up a 34 percentage-point lead in an April State Affairs/Howey Politics Indiana survey.
The other five candidates are: Lt. Gov. Suzanne Crouch, former Attorney General Curtis Hill, Indianapolis mom Jamie Reitenour and two former state secretaries of commerce in Brad Chambers and Eric Doden.
The winner of Tuesday’s Republican primary will face Democrat and former state Superintendent of Public Instruction Jennifer McCormick, who will advance for her party unopposed.
Republican candidates spent tens of millions of dollars in an attempt to stand out in their crowded pack. The primary race also featured four televised debates, including a chaotic final display on April 24.
U.S. Senate
Two Democrats are vying for the chance to replace Braun in the U.S. Senate: Former state Rep. Marc Carmichael and Valerie McCray, a clinical psychologist.
Carmichael has outspent McCray in the race by a margin of nearly $63,000 to $15,000.
Both are attempting to become the state’s first Democratic senator since Joe Donnelly’s election in 2012.
Rep. Jim Banks is running unopposed in the Republican primary.
3rd Congressional District
Banks’ entry into the Senate race leaves his seat in Congress open, and a bevy of Republicans are seeking to replace him: Grant Bucher, Wendy Davis, Mike Felker, Jon Kenworthy, Tim Smith, Marlin A. Stutzman, Eric Whalen and Andy Zay.
State Affairs has identified Stutzman, a former congressman; Smith, a self-funding former Fort Wayne mayoral candidate; and Davis, a former Allen County judge, as candidates to watch in the crowded race.
Kiley Adolph and Phil Goss are running against one another in the Democratic primary.
5th Congressional District
After initially deciding against another run, Republican Rep. Victoria Spartz reversed course to seek re-election in 2024.
Eight other Republicans are running against Spartz: Raju Chinthala, Max Engling, Chuck Goodrich, Mark Hurt, Patrick Malayter, Matthew Peiffer, L.D. Powell and Larry L. Savage Jr.
Goodrich, a member of the Indiana House of Representatives, has spent more than $2 million on TV ads as he seeks to unseat Spartz, according to AdImpact.
Two Democrats, Ryan Pfenninger and Deborah A. Pickett, are on the ballot.
6th Congressional District
Seven Republicans are attempting to replace retiring Rep. Greg Pence: Jamison E. Carrier, Darin Childress, Bill Frazier, John Jacob, state Sen. Jeff Raatz, Jefferson Shreve and state Rep. Mike Speedy.
Shreve, who ran unsuccessfully for Indianapolis mayor in 2023, has spent nearly $4 million — predominantly through TV advertising — in his bid.
Cynthia Wirth, whom Pence defeated by 35 percentage points in 2022, is running unopposed in the Democratic primary.
8th Congressional District
Republican Rep. Larry Bucshon is also retiring, and a dozen candidates in both parties are seeking to fill his seat.
On the Republican side, former Rep. John Hostettler, state Sen. Mark Messmer, former President Donald Trump White House staff member Dominick Kavanaugh and frequent Bucshon primary challenger Richard Moss are each making a push.
Fellow Republicans Jim Case, Jeremy Heath, Luke Misner and Kristi Risk are also running but trail the above pack in campaign spending.
Four Democrats are also seeking a nomination: Erik Hurt, Peter FH Priest II, Edward Upton Sein and Michael Talarzyk.
Contact Rory Appleton on X at @roryehappleton or email him at [email protected].
What happens after the primary election?
Hoosiers will narrow their choices for governor, U.S. Senate and various other state and federal races during the Tuesday, May 7, primary election. Winners of the primary election races will represent their respective party in the Nov. 5 general election. If a contest features only one Republican or Democrat, that candidate will automatically move on. …
Newcomer Clay challenges longtime incumbent Young for state Senate
A central Indiana state Senate race may soon serve as a barometer for state Republican politics, as a young upstart groomed for leadership faces down a longtime incumbent in the upcoming primary election.
The race for Senate District 35, which includes parts of Marion and Hendricks counties, revolves around similar conservative beliefs held by wildly different candidates.
State Sen. Mike Young, 72, is a Statehouse fixture who refuses to attend his committee meetings or caucus with his fellow Republicans but nonetheless offers nearly four decades of legislative experience to his district.
Philip Clay is a 29-year-old retail banker with a young family and no political experience. He seeks to bring more collaboration to the role.
If elected, Clay would be the only Black Republican in the Indiana General Assembly.
“Unpopularity in the Statehouse doesn’t always translate to being unpopular in the district,” Mike O’Brien, president of 1816 Public Affairs Group and former Hendricks County Republican Party chairman, said of Young.
“You have a young guy working hard, and that’s kind of what it takes to beat a long-term incumbent,” O’Brien said. “We see examples of that every cycle. Maybe this is the one this time.”
Young no longer caucuses
Young, who served in the Indiana House of Representatives from 1986 to 2000 before moving to the state Senate, made headlines in summer 2022 when he decided to no longer caucus with his party.
“I won’t caucus because I don’t trust our leadership,” Young told State Affairs. He stressed his decision had nothing to do with his failed amendment to the state’s abortion ban, saying he wrote a letter expressing his intent to leave before the abortion bill was heard.
Young said he remains part of the caucus, as he is a Republican senator, but simply does not attend meetings.
He has also stopped going to most meetings of his assigned Senate committees: Corrections and Criminal Law, Elections, Family and Children Services, and Pensions and Labor.
“I go to them if they affect my district,” Young said.
He attended a Jan. 17 Pensions and Labor Committee meeting to argue down Senate Bill 54, which Young said would have hurt Wayne Township firefighters by forcing them to consolidate with the Indianapolis Fire Department.
Young said all senators are asked to pick five committees they’d want to serve on, but Senate President Pro Tempore Rodric Bray did not select him for any of his listed options. Young informed Bray he did not intend to attend future committee meetings.
Bray also replaced him as chair of the Corrections and Criminal Law Committee and removed him from the Judiciary Committee. Attempts to reach Bray for comment were unsuccessful.
“You don’t have to be on committees to get things done,” Young said. “When the bill comes to the floor, you have the opportunity to amend just like you would in committee. So there’s nothing really lost or harmed by it.”
Clay’s push for office
Clay, who has lived within the district in Plainfield for most of his life, said Young’s decision to no longer caucus motivated him to get into the race.
“There’s a lot of things Mike and I agree on, but after Mike left the Republican caucus and voiced some personal grievances with the Senate … it’s kind of like watching your favorite player not show up to the game,” Clay said.
Clay said one of his primary campaign platforms is improving workforce development within the district as. He co-founded Arthur Clay and Co., an organization focused on preparing men of color for their future careers.
Like Young, Clay is anti-abortion. Whereas Young seeks to eliminate property taxes, Clay believes reform is the more prudent path. Clay also hopes to improve education, make adoption easier and increase public safety if elected.
Clay trained with both the national and state GOP in 2022, completing the Republican National Committee’s Rising Star and Indiana Republican Diversity Leadership Series training programs geared toward recruiting minority conservatives for public office.
“There are so many well-qualified minority conservatives that we’ve not done a good job in either messaging to or helping them explore the Republican Party,” Clay said.
“There are Black conservatives across the country,” he said. “To have the opportunity to be the only one in the state is an incredible honor. It’s absolutely something I don’t take lightly.”
Support from Indiana Chamber
Both candidates have spent tens of thousands of dollars on their campaigns as of March 31.
Clay spent just under $34,000 in the first quarter of 2024, leaving him with about $30,000 left for a final push.
Young has spent around $29,500 and has about $45,000 remaining.
While Young has raised from various sources — including other lawmakers, small-dollar donors and $22,000 in personal loans — much of Clay’s backing has come from one source: the Indiana Chamber of Commerce.
The Chamber’s political action committee, Indiana Business for Responsive Government, has given Clay almost $21,000, plus another $11,000 from in-kind donations.
Jeff Brantley, the Chamber’s senior vice president for political affairs, said Young’s voting record does not often align with his organization.
“He talks a lot, but he can’t get things done in one of the more rapidly growing suburban districts in the state,” Brantley said of Young. “Constituents aren’t being fully served.”
Brantley said Clay could bring both a fresh perspective as the Legislature’s only Black Republican and new life to the seat.
“The district needs and deserves someone who really has the energy and the engagement,” Brantley said.
Young said the Chamber was “beating up on him,” even though he has worked to get Chamber-supported legislation through the Statehouse. He listed reducing the state’s license plate tax as one example.
The senator has been endorsed by the Indiana Family Action PAC, Indiana Right to Life, Hoosier Conservative Roundtable, American Family Association of Indiana PAC and the Indiana State Police Alliance.
Taxes key to Young’s reelection bid
If reelected, Young hopes to end property taxes for all Hoosiers, particularly those over 65.
“Speedway has neighborhoods where most people have lived in their homes for 50 years, and they’re on fixed incomes,” Young said. “And when they get a 48% [tax] increase, that’s killing them. They can lose their house.”
Young has pushed the idea for more than a decade, and he believes momentum and money exist to get it done next year, when the Legislature will set the state’s budget.
Indiana could be the first state to end property taxes for seniors “with no strings attached,” Young said.
He said he would also work to “stand up for conservative values”: supporting tax cuts, opposing a plan to give “illegal immigrants” driver’s licenses and creating a rule in the state senate requiring 24 hours’ notice to changes in the state budget.
O’Brien, the former Hendricks County GOP chair who has followed Young’s career for years, said the senator’s long incumbency will be tough to beat. He added that Young’s reputation as a thorn in leadership’s side isn’t necessarily a detriment in the May 7 primary election.
“Go-give-’em-hell gets you a lot of votes,” O’Brien said. “That’s why [former President Donald] Trump is doing what he does. It’s just the mood of the electorate right now.”
Contact Rory Appleton on X at @roryehappleton or email him at [email protected].