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McCormick unveils $600 million tax relief plan, aimed at helping address property tax spikes

By Brandon Smith

Posted August 15, 2024

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ennifer McCormick speaks at a podium at the Indiana Democratic State Convention. Behind her is a black curtain with a line of American flags

Jennifer McCormick speaks at a podium at the Indiana Democratic State Convention on Aug. 15, 2024. (Lauren Chapman/IPB News)

Democratic gubernatorial candidate Jennifer McCormick unveiled a $600 million tax relief plan Thursday, aimed at helping address sharp spikes in property tax bills.

The plan uses several proposals introduced in the General Assembly by lawmakers from both parties.

The biggest impact would come from increasing the exemptions Hoosiers can take on their income taxes. McCormick’s plan would raise it from $1,000 to $2,500.

“Since our wages aren’t moving and our costs are going up, that there was a way for Hoosiers to capture more dollars to help offset what is happening with property taxes,” McCormick said.

That change would cost Indiana $333 million a year in revenue, and local governments $173 million, according to the Legislative Services Agency. McCormick said one of her goals was to minimize the impact on local government budgets.

“We’ve heard from so many of our local communities that they’re tight,” McCormick said. “They can’t afford to take a lot of hits.”

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The plan includes increasing property tax deductions for homeowners age 65 and older and veterans with disabilities. McCormick would also increase the income tax deduction for renters and allow more exemptions on every Hoosier taxpayer’s income taxes.

“It was important that we have that wide range of relief, meaning that a lot of Hoosiers will benefit from this,” McCormick said.

McCormick said minimizing the impact on local government budgets is key. The state budget would take more than two-thirds of the $600 million impact of the plan.

“We’re talking about taking this, looking at the budget holistically and being smart about how we prioritize those dollars,” McCormick said. “There is wiggle room in that budget.”

Another part of the plan would provide homeowners with a tax credit if their property tax bill increases by 10 percent or more in a year.

Brandon is our Statehouse bureau chief. Contact him at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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McCormick unveils $600 million tax relief plan, aimed at helping address property tax spikes

By Brandon Smith

Posted August 15, 2024

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McCormick unveils $600 million tax relief plan, aimed at helping address property tax spikes

By Brandon Smith

Posted August 15, 2024

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