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Should lawmakers approve property tax relief for seniors?
People like to point out that Indiana’s property taxes are low compared with those of other states. The reality is that this comparison means nothing to Hoosiers who have seen their property tax bills jump higher and higher. It matters even less when older homeowners who are already struggling with higher costs on food, utilities and medicine are now having to absorb hundreds, if not thousands, of dollars in increased property tax payments.
There is a reason Gov. Mike Braun made property taxes a top issue in his campaign, and there’s a reason the Indiana Senate has made property tax relief Senate Bill 1. It’s because Hoosiers, especially older homeowners, need relief.
Targeted relief options
Whatever tax relief looks like, state leaders must ensure it’s targeted to those who need it most. We know property taxes are critical to the well-being of our communities, and any changes need to continue to ensure that vital services are funded, while also focusing on the need to help residents stay in their homes as they age and preserve housing affordability and stability.
AARP Indiana will be discussing options with legislators that might be able to help ease the property taxes squeezing the already tight budgets of older Hoosiers. These policies could include:
◗ Requiring that information about current property tax relief programs be printed on or sent with property tax bills. Many property tax relief programs are underused because the intended recipients—often older taxpayers—are unaware the programs exist.
◗ Encouraging more counties to offer monthly payment options. Many homeowners can’t afford to pay an annual or semiannual property tax bill out of their monthly income.
◗ Creating a statewide tax credit to provide relief to Indiana homeowners 65 and older, who have the highest property tax burden in relation to their household income.
◗ Allowing older Hoosiers to delay paying a portion of their property taxes until their home is sold or their estate is settled. At that time, the taxes would be paid back with interest.
What Hoosiers are saying
To better understand how increasing property taxes impact older homeowners in Indiana, AARP commissioned a poll of Indiana voters age 50-plus who own a home in the state. The full results of the survey will be released at the conclusion of an upcoming virtual discussion we are hosting at 10 a.m. on Jan. 22. The event, “Hoosier Property Taxes: Where We’ve Been and Where We’re Going,” will include remarks from property tax experts and state leaders. To learn more and sign up, visit aarp.org/IN.
The survey revealed that 66% of respondents, regardless of political affiliation, feel their property taxes are too high. Additionally, the same percentage believes reducing property taxes should be a top priority for policymakers this year.
As our population continues to age, the importance of property tax relief will only increase, which make this session’s discussion so important for older Hoosiers and their families.•
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Marr is legislative director for AARP Indiana. Send comments to ibjedit@ibj.com.
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