By Andi Anderson
The Indiana House has approved a new property tax relief bill, but farmland owners remain disappointed by the limited benefits they are set to receive. Senate Bill 1 aims to provide $1.4 billion in tax relief to homeowners over the next three years.
In comparison, farmland owners will receive only about $140 million in savings during the same period.
State Representative Kendell Culp voiced his concerns in a Facebook video, stating that while the bill offers some progress, the relief for farmland is just 10% of what homeowners will get. He acknowledged that it is a step forward but expressed hope for more balanced support for agriculture.
The bill makes two main changes to farmland tax calculations. It increases the capitalization rate used in the formula from 8% to 9%, and it introduces a one-third deduction in the assessed value of farmland. These changes are expected to provide some relief, but experts say the impact may be limited.
Todd Kuethe, a professor of farmland economics at Purdue University, said that such tax policy changes could influence how land is used. If tax reductions make one land use more financially attractive than another, some landowners may choose to shift how they use their property.
The bill is now heading back to the Indiana Senate for final approval. While it may bring some tax relief, many in the agricultural community believe more support is needed to match the rising costs and value of farmland.
As lawmakers debate future tax plans, farmland owners continue to hope for policies that better reflect their financial challenges and contributions to the state economy.
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Categories: Indiana, Government & Policy