One of the notable components of the bill is the increase in assessed value deduction for disabled veterans, which is to be phased in over five years, rising from $24,960 under current law to $50,000 by 2030. Additionally, the bill establishes a 100% property tax credit over five years for homesteads owned by individuals aged 65 and older, promoting financial relief for the elderly community in Indiana. These adjustments in taxation are anticipated to have a uniquely positive impact on vulnerable demographics such as veterans and senior citizens, aiding in reducing their financial burden related to property taxes.
House Bill 1075 introduces significant changes to property tax regulations in Indiana. Effective from July 1, 2025, the bill stipulates that the assessed value of homestead properties will no longer experience annual adjustments or 'trending'. Instead, the assessed value will be calculated based on the property's value as of the January 1, 2025 assessment date, the value at the first assessment date of the homestead, or its market value if there's a change in ownership. This measure aims to stabilize property tax assessments for homeowners, particularly in light of the shifting real estate market.
While the bill certainly provides numerous benefits, it is not without its critics. Opponents argue that the removal of annual adjustments could lead to disparities in property tax burdens as property values continue to fluctuate in the future. They suggest that a stagnation in the adjustment process may ultimately disadvantage new homeowners and those whose property values appreciate at a quicker pace. Moreover, there is concern regarding local government's ability to manage and respond to changes in the property tax base effectively, as the bill centralizes control over property tax regulations and creates a standardized framework that may obscure local considerations.