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Mayor Bennett says property tax caps mean less revenue for city

By Joe Hren

Posted February 10, 2023

Terre Haute courthouse (Steve Burns, WFIU/WTIU News)

Homeowners could see a big jump in property tax bills this year due to skyrocketing home values. Indiana lawmakers want to provide some relief by lowering property tax caps the next few years.

That’s giving Terre Haute Mayor Duke Bennett déjà vu. Property tax caps mean less revenue for Indiana cities and towns. Bennett says it took years for the city to eliminate a multi-million dollar deficit in 2010 when tax caps first took effect.

“I always understand why our legislators want to protect the citizens of our state. But these are issues in certain areas,” Bennett said.

He says this year’s tax cap credits are going to be the biggest he’s seen. Without tax caps, the city would have an additional $15 million to help fund its $105 million budget.

“Everybody loves it when the value of their house goes up. But then the taxes come and I understand the conflict there. I just don't know what the legislature is going to do to address that,” he said.

Property taxes are currently capped for homeowners at one percent of their assessed value. The bill that would lower that is being heard in a House Ways and Means committee.