Republican gubernatorial candidate Mike Braun has revised his property tax plan so that it meets the goal he set out last week of resetting all tax bills for owner-occupied homes to 2021 levels.
Braun announced the change Tuesday, acknowledging the proposed increases in homestead deductions in his initial plan would leave an undetermined percentage of homeowners without savings.
Republican House Speaker Todd Huston told State Affairs that Braun’s plan was a “great proposal to start from” but that he had not yet closely studied its impact.
Braun: all homeowner bills to ‘reset’ to 2021 levels
Braun’s plan released Friday centers on increasing homestead deductions to reduce the assessed value of homes. He also proposed imposing a maximum 3% annual cap on property tax bill increases, with a 2% cap for senior citizens, low-income residents and families with children under the age of 18.
Braun’s campaign released a statement Tuesday saying that “most Hoosiers have found they will see significant property tax cuts by resetting their tax bills to 2021 levels due to enhanced homestead deductions. However, some Hoosiers in high-tax districts would still find little relief.”
Braun’s statement said his plan was being revised so that “all Hoosier homeowners’ tax bills will be reset to the lower of their 2021 tax bill or the new bill based on enhanced deductions in my plan.”
Total property tax bills on owner-occupied homes increased statewide by 9% in 2021, 9.2% in 2022 and 16.7% in 2023, according to a Legislative Services Agency report.
“As Governor, I will embrace feedback from everyday Hoosiers on how to improve our state,” Braun said in the statement. “To ensure all homeowners benefit from my plan, I’m introducing an additional feature to this plan to guarantee all homeowners have their bills reset to at least their 2021 pre-Biden/Harris inflation levels.”
Braun’s campaign has not released any calculations on how much his proposal would reduce property tax collections and whether the tax burden would be shifted to business, agricultural or rental properties.
His campaign did not answer questions Wednesday from State Affairs on whether such an analysis was being prepared for release.
Braun has not proposed a possible replacement for potentially hundreds of millions in revenue declines for public school districts and local governments, which receive more than 90% of property tax revenue.
Huston: Braun plan ‘great place … to start from’
Braun’s proposal comes as the Legislature’s State and Local Tax Review Task Force continues its work on a review of the state and local tax structure, including property taxes, ahead of the new legislative session starting in January.
Huston said that if Braun is elected governor, his proposals will be considered along with whatever is produced by the task force led by House Ways and Means Committee Chair Jeff Thompson and Senate Tax and Fiscal Policy Committee Chair Travis Holdman.
“Senator Braun, like many of us, has heard our constituents’ concerns about property taxes, and he’s put together a proposal and I appreciate his leadership on that,” Huston said in an interview with State Affairs. “As we go into the next legislative session, it’s a great place, a great proposal, to start from. We’ll work with him and his team and our Senate colleagues to get something passed that addresses the property tax concerns of Hoosiers.”
Huston wasn’t ready to endorse the specifics of Braun’s proposal.
“We really haven’t had a deep discussion on it. Like anything involving property taxes, there’s things you have to work through,” Huston said. “We’ll work together with them on it to get something accomplished.”
Tom Davies is a Statehouse reporter for State Affairs Pro Indiana. Reach him at [email protected] or on X at @TomDaviesIND.