McCormick/Goodin campaign releases ‘common sense’ property tax relief plan

INDIANAPOLIS — Jennifer McCormick, the Democratic gubernatorial nominee, released her “common sense” property tax relief plan on Thursday, continuing the property tax-related conversation that has occurred throughout the campaign.

According to a news release from McCormick’s campaign, officials said that her “responsible” plan provides property tax relief to every Hoosier, stressing that there would be targeted relief “for those who need it most” without cutting services.

According to previous reports, McCormick and former Indiana State Rep. Terry Goodin are running as the Democratic gubernatorial ticket for November’s general election. U.S. Senator Mike Braun (R-Ind.) and Micah Beckwith are running as the Republican gubernatorial ticket and Donald Rainwater and Tonya Hudson are running as the Libertarian gubernatorial ticket.

“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,” McCormick said in the release. “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.”

During the recent lieutenant governor debate at the Indiana State Fair earlier this month, Goodin referenced their plan, stating that they would look to see what money the state needs and budgeting based on priorities. Goodin also argued that the state’s property tax-related crisis has been created by Republicans after Indiana has been led by Republicans for the past 20 years.

Both Braun and Rainwater have already released their respective property tax plans. According to previous reports , Braun said that he would cap property tax bills, capping the increase in tax bills at 2% for seniors, low-income Indiana residents, as well as families with children under the age of 18.

In his plan, Rainwater proposed a residential property tax cap of 7% for the purchase price of the property or 1% for a maximum of seven years. Rainwater said his plan differs from Braun’s because it would be the same for all Hoosiers, regardless of their situation.

What does the McCormick/Goodin plan consist of?

According to the release, the McCormick/Goodin campaign said their property tax relief plan calls for:

• Capping the increase in property tax bills at 10%
  • The campaign said that individual homestead owners would receive a refundable tax credit to offset property tax increases if their tax bill grows more than 10% compared to the prior bill. This would exclude if a school district passed a referendum. The Indiana Legislative Services Agency estimates this would result in $23.5 million in savings starting in 2024 and $7 million in each subsequent year.
• Increasing the homeowner property tax deduction by 40%
  • The campaign said they would increase the maximum homeowner property tax deduction from $2,500 to $3,500, estimating that it would save eligible homeowners $8.8 million starting in 2025, according to the Indiana Legislative Services Agency.
• Increasing personal exemptions by 150%
  • This would increase the amount of exemptions on state and local income taxes from $1,000 to $2,500, resulting in around $500 million in taxpayers savings, according to the Indiana Legislative Services Agency.
• Increasing the renters tax deduction by 33%.
  • The campaign said this would increase the renter’s income tax deduction to $4,000 per year. This is estimated to cost around $28 million per year, according to the Indiana Legislative Services Agency.
• Expand deductions for senior citizens
  • This would increase the income threshold for Hoosiers over 65, making up to $40,000 for individuals, $50,000 for households with joint returns, and assessed value of real property up to $300,000. According to the Indiana Legislative Services Agency, this is estimated to cost around $14.7 to $21.8 million each year.
• Expand deductions for disabled veterans
  • This would increase the cap on assessed value to $350,000 to expand qualifications for disabled veterans. According to the Indiana Legislative Services Agency, this is estimated to cost around $6.8 million per year.

“These steps will ease the burden of rising property tax rates while creating time for a holistic look at Indiana government funding,” the release said.

McCormick said in the release that compared to her campaign’s plan, 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,” McCormick said in the release. “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.”

McCormick’s comments on plan

During a Thursday morning news conference, McCormick said that her campaign’s plan is common sense, stressing the importance of giving Hoosiers the ability to wrap their heads around the plan.

While property taxes in the state of Indiana are low, McCormick said that there is “room to improve,” highlighting that her plan is a good start. McCormick stated the importance of approaching the relief in a bipartisan, and legislative-focused, fashion.

“It’s ready on day one,” McCormick said. “We did not want a plan where people had to take time to figure out the fiscal impact… Day one, it is ready. They can call the general assembly and pass it… We can talk about ‘is that enough?’ But again, it’s a great start to offer that relief to make sure that we are not hammering our police, our fire, our schools and our parks at the local level.”

Response to McCormick’s plan

Rainwater, the Libertarian gubernatorial candidate, responded to McCormick’s property tax proposal on Friday, stating that it was a “reminder that Dr. McCormick intends to raise taxes on Hoosier households.”

Rainwater said that the plan establishes different rules for different people and the plan as a whole does not actually reduce property taxes. Rainwater also said that it still allows for property tax bills to increase as much as 10% annually based on assessed value.

“Dr. McCormick’s tax plan appears to do nothing to slow the growth of property taxes, and it does not solve the overall issue that Hoosiers can never truly own their property in Indiana,” Rainwater said. “As long as property taxes are billed in perpetuity, the state government effectively hold the controlling interest in the property.”

According to the Indiana Secretary of State’s office, Hoosiers are able to register to vote for the 2024 General Election through Oct. 7. For more information on how Indiana residents are able to register to vote, click here .

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