PRESS ROOM
Jennifer McCormick releases Commonsense Property Tax Relief Plan
August 15, 2024
Contact: Kelly Wittman, (317) 450-5711
McCormick for Governor
NEW CASTLE, Ind.—Today, Indiana gubernatorial nominee Jennifer McCormick released her commonsense, responsible plan to provide property tax relief to every Hoosier, with targeted relief to those who need it most without cutting essential police, fire, and school services to Hoosiers.
“Many Hoosiers are struggling to keep up with rising property taxes driven by increased assessed values. Senior citizens, those on fixed incomes, veterans, and working families deserve relief,” said McCormick. “Our commonsense plan helps those feeling the pain of property taxes without raiding critical funding that supports our local communities, schools, libraries, police, and fire departments.”
The McCormick-Goodin Commonsense Property Tax Relief Plan is a multifaceted approach to put more money in Hoosiers’ pockets. The plan calls for capping the increase in property tax bills at 10%, increasing the homeowner property tax deduction by 40%, increasing personal exemptions by 150%, and increasing the renters tax deduction by 33%. These steps will ease the burden of rising property tax rates while creating time for a holistic look at Indiana government funding.
“Mike Braun’s plan is unserious, reckless, and fiscally irresponsible. Leave it to a D.C. politician like Mike Braun to promise tax cuts that won’t come out of the state budget or impact state spending,” added McCormick. “The state can provide property tax relief now for those who need it while finding a long term solution to address local funding needs. It is simply a question of budget priorities. As a State Representative, Mike Braun voted for higher property taxes [1] when he had the chance to put Hoosiers first. I will always put Hoosiers first and support our local communities.”
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[1] Indiana General Assembly, H.B. 1476, Vote 265, 2/25/2015
Fact Sheet: McCormick Commonsense Property Tax Relief Plan
The McCormick-Goodin Commonsense Property Tax Relief Plan will provide property tax relief by increasing tax credits for senior citizens, veterans and low income Hoosier families in 2025 and 2026. The plan also calls for increasing tax exemptions for renters and capping yearly property tax increases at ten percent.
The McCormick-Goodin Commonsense Property Tax Relief Plan has six mechanisms to provide significant relief for Hoosiers:
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40% Increase in the Homeowner Property Tax Deduction: Increase the maximum homeowner property tax deduction from $2,500 to $3,500. The Indiana Legislative Services Agency last year estimated this would be an $8.8 million savings to eligible homeowners starting 2025.
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Expand Deductions for Senior Citizens: Expand property tax deductions by increasing the income threshold for senior citizens over 65 years making up to $40,000 for individuals and $50,000 for households with joint returns and assessed value of real property up to $300,000. Currently, the income threshold for senior citizens is $30,000 for individuals and $40,000 for households with joint returns and assessed value of real property up to $200,000. In 2022, the Indiana Legislative Services Agency estimated this would cost approximately $14.7 to $21.8 million per year.
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Expand Deduction for Disabled Veterans: Increases the cap on assessed value from $240,000 to $350,000 to expand qualifications for disabled veterans (total disability or at least age 62 with at least 10% disability). The Indiana Legislative Services Agency last year estimated this would cost approximately $6.8 million per year.
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150% Increase in Exemptions on Personal Income: Increase the amount of exemptions on state and local income taxes from $1,000 to $2,500. The Indiana Legislative Services Agency last year estimated this would result in approximately $500 million in savings to taxpayers, including the elderly and blind ($333 million of savings in state income taxes and $173 million of savings in local income taxes).
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Cap Property Tax Bill Increases at 10%: Individual homestead owners will receive a refundable tax credit to offset property tax increases if their property tax bill grows more than 10% compared to the prior year (excluding schools’ passed referendums). This policy will effectively cap the growth of property tax bills at no more than 10% annually. In 2022, the Indiana Legislative Services Agency estimated this would result in approximately $23.5 million of savings to individual homestead owners starting Calendar Year 2024, and $7 million in each subsequent year.
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33% Increase in Renters Tax Deduction: Increase the renter’s income tax deduction from $3,000 per year to $4,000 per year. The Indiana Legislative Services Agency last year estimated this would cost approximately $28 million per year.