On Tuesday, April 15, Indiana Governor Mike Braun signed a new property tax relief bill, Senate Enrolled Act 1, marking a significant shift in the state’s approach to taxation. This legislation aims to reduce property taxes in the state by introducing a series of exemptions and adjustments over the coming years to benefit Hoosier businesses.
Key Legislation Details
Exemption Amount Increases
One of the primary features of the new legislation is the increase in exemption amounts for Indiana Business Tangible Personal Property Tax filings. This change is retroactive to personal property having an assessment date as of January 1, 2025. Previously, businesses with personal property valued at up to $80,000 would be exempt and only need to file a future return when personal property exceeded this threshold. This exemption threshold has dramatically increased to $1 million. For personal property included in the assessment date of January 1, 2026, the exemption doubles to $2 million.
Future Changes
Looking ahead after the January 1, 2025, assessment date, the signed law will phase out the 30% floor for many areas. This approach aims to ease the financial burden on property owners and stimulate economic growth by attracting more investors and businesses to Indiana, mirroring competitive tax policy strategies in other states being proposed.
State Guidance and Deadlines
The Indiana Department of Local Finance has taken the position they will not be providing official guidance until this year’s legislative session has ended at end of this month. Property owners must adhere to these new changes and complete their filing deadline of May 15, as no extensions will be granted.
Your Guide Forward
Braun campaigned heavily on this bill, but the implementation of this property tax relief bill has generated significant attention and debate. Some support its potential to boost Indiana’s competitiveness, while others criticize, expressing concern over possible fiscal implications for local government and schools.
As the state embarks on this ambitious path, investors and businesses must stay informed and comply with the new regulations to take full advantage of the tax relief. Consult with your tax advisor and/or Cherry Bekaert representative to understand how these changes may impact you. We are here to guide you forward.
