We expected a major overhaul of Senate Bill 1, the leading vehicle for significant property tax reform this session, before it passed out of the Senate Tax and Fiscal Policy Committee earlier this week – and we weren’t disappointed.

As we’ve reported previously, the introduced version of SB1 reflected Governor Braun’s plan to increase the standard homestead deduction and create a new ‘Maximum Tax Liability Credit’ to effectively cap property tax bills to a certain rate of annual increase (2 or 3%). We testified in support of the bill as the leading vehicle for significant property tax relief.

All the same, we knew change was coming, and SB1 was overhauled before passing out of Tax and Fiscal Policy on Tuesday. The amended bill provides targeted relief to certain groups of homeowners and tightens controls on tax referenda and the amount total property tax collections can grow from year to year – the latest version:

A number of floor amendments to SB1 were debated but ultimately defeated on Thursday, so the plan as it emerged from committee is now eligible for a final Senate vote.

We support the relief to seniors, veterans and first-time buyers in the bill, as well as the focus on referenda raising taxes on Hoosiers outside the protection of our constitutional tax caps. We’re cautious about the consequences of the proposed tax deferral program, which could discourage homeowners from selling and triggering the repayment while also creating a de facto tax lien on the properties in question during a transfer.

All in all, we believe the debate over homestead property relief continues to move in a pro-homeowner direction and we’ll continue to keep you updated on the evolution of SB1, House Bill 1402 and other key tax proposals.

REALTORS® have been out in force at the Capitol advocating for IAR priorities like House Bill 1005 (read on for good news on this legislation), Senate Bill 1, House Bill 1347 (closing the trust account loophole) and others during our Delegation Days each Monday. This week, members also heard from Indiana Treasurer Dan Elliott (right) on fiscal management, cybersecurity, his role in guaranteeing reliable 911 service (who knew?) and more.

It was a couple of days before Valentine’s, but the 96-0 vote to pass House Bill 1005 warmed the hearts of housing advocates on Tuesday.  As a reminder, HB1005 continues the state’s Residential Infrastructure Assistance Program, supporting loans to local governments for the cost of housing-related infrastructure investments.

It also refines funding priorities to encourage communities to adopt zoning and regulatory changes to encourage higher-density housing and creates statutory permitting and inspection deadlines to pick up the pace of new development.

HB1005 now heads to the Senate, where it is being co-sponsored by REALTOR® champion Senator Linda Rogers and Majority Leader Chris Garten. (The initial appropriation in the introduced bill of $25 million to replenish the Residential Infrastructure Assistance Fund will be considered as part of the state budget, House Bill 1001.)

In another early Valentine’s Day gift to Marion County homeowners, the House Roads and Transportation Committee voted to strip a provision in House Bill 1461 that would have allowed new property tax referenda to pay for routine road projects in Indianapolis. We see this as a dangerous precedent for shifting basic public services to referenda outside our property tax caps – coaxing voters down a slippery slope of new tax levies that ultimately render the caps meaningless.

We’re glad the Committee and its chairman, Representative Jim Pressel, took a detour from this anti-taxpayer idea.

Energy production is a complicated issue for the real estate industry. Private property rights are a guiding advocacy principle; the ability for property owners to lease land for wind or solar projects, for example, should be upheld in the absence of a compelling community interest to the contrary. We also respect local planning and land use policies that allow public input on the future of their communities and aim to protect property values and quality of life for residents – as long as such policies aren’t unduly restrictive or enforced in an arbitrary or capricious way.

It can be a challenging balance. And in the case of land use involving energy generation, we’re also mindful that major new data and industrial projects can potentially strain Indiana’s power supply to serve new residential development.

So we’ve been watching Senate Bill 425, authored by Senator Eric Koch (who coincidentally stopped by our Delegation Day on Monday at the REALTOR® Building to share his thoughts with members). The bill would create ‘Energy Production Zones’ that would streamline – or eliminate – certain local approval processes for new energy generation projects if the property in question was previously home to a power generation facility. We appreciate Senator Koch’s work on a thorny topic and attempting to reconcile the need to maintain and diversify our energy supply while allowing local oversight on plans to expand the collective physical footprint of these projects.

SB425 passed out of the Senate Utilities Committee on Thursday with a significant change – the amended bill removes wind and solar projects from eligibility as energy production zones, limiting the scope to other electricity generation. This ensures that local zoning and permitting of renewable energy projects is not preempted or curtailed.

This move is also a reminder that wind and solar developments – often on agricultural property – are often fertile ground (pun intended) for local controversy and intense debate. We’ll keep you posted on how SB425 progresses along with other legislation on land use issues.

Senator Eric Koch (right photo, center) talks to Bloomington and Bedford area REALTORS® at this week's Delegation Day. 

IAR CEO Mark Fisher recently made a guest appearance on the 'Session Sessions' podcast co-hosted by Representatives Earl Harris Jr. and Blake Johnson to talk about housing inventory and affordability, the appeal of walkable neighborhood developments, why REALTORS® make the most committed sales force for Indiana communities and much more. Listen by clicking below (also available on Spotify).

Keep an eye on the progress of IAR priorities and other bills related to housing with the latest legislative tracking report - click below:

And get a refresher on our policy priorities and how these bills fit under our four pillars of advocacy by reviewing the 2025 Indiana REALTOR® Legislative Agenda: