INDIANAPOLIS – Today, April 10, Indiana House Republicans passed Senate Bill (SB) 1 with an amendment that will potentially increase Hoosiers’ local income taxes by $1.1 billion annually while cutting police, fire, Emergency Medical Services (EMS) and public school services by $1.4 billion over three years. While the bill was pushed through with very little time to review the possible fiscal impact, it’s clear that SB 1 will provide minimal property tax relief to Hoosiers. Republican leadership told Hoosiers it’s time to “tighten our belts” while discussing this legislation, despite House Democrats’ concerns that SB 1 will choke the life out of vital services provided by local governments.
State Rep. Burton (D-Evansville) issued the following statement after voting “no” on SB 1:
“Indiana cities and towns cannot thrive under SB 1. This is an attempt to defund critical services by reducing local governments’ budgets, while adding more parameters. Our local government will be forced to overcompensate by imposing income taxes to fund our first responders. Vanderburgh County will lose $45.14 billion over the next three years, money that would be going to schools, public safety, and paving roads. Rural, urban, and suburban communities will all be handed some very difficult decisions that will lead to less stable communities.
“Vanderburgh County relies on these resources and cutting that funding will only lead to more harm. We need to be proactive and recognize this is not sustainable for the future of Evansville and will only create more problems down the line.
“No one is championing this legislation besides legislators voting in favor. $300 is not worth the problems that are sure to come. Mayors, police chiefs, fire chiefs, and school superintendents are all concerned about this tax proposal. I agree property tax relief is needed, but not at the cost of our communities, and I want to continue to work with the legislature to find better solutions. Our state’s reserves are drying up, local governments may be forced to increase taxes, and there’s not much proposed to help everyday Hoosiers. I voted NO to SB 1.”
The bill now heads back to the Senate for a concurrence vote. During the House session on Wednesday, April 9, Gov. Mike Braun signaled that this was the Indiana GOP’s final property tax plan, despite House Democrats still working to make the bill better on the House floor via amendments which were all voted down by