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Indianapolis, IN
Change City

Pushing for Property Tax Relief in Indiana

Posted on 11/30/24 by Sarah Hollander

Over the past two years, Julie Mortier’s property taxes on her Valparaiso condo jumped by 44 percent to roughly $2,400—putting a squeeze on her already cost-conscious budget.

The 77-year-old retired teacher has cut gas consumption by limiting trips, dropped some prescriptions, made more frugal meals and canceled her beloved newspaper subscription.

“It really has reduced my standard of living in the sense of freedom to do things,” Mortier says.

With Mortier and others like her in mind, AARP Indiana plans to push for more property tax relief for older Hoosiers during the state’s 2025 legislative session, which begins in January.

Other advocacy priorities include improving access to home- and community-based services, increasing public transit funding and creating a state-administered retirement savings program for workers without access to one through their employers.

Ambre Marr, AARP Indiana’s legislative director, says the state can balance its revenue needs with targeted tax relief for older residents, which would help the population stay in their homes and communities as they age.

“Most of the time their houses are paid off, but their property taxes have continued to increase,” Marr says.

One option AARP Indiana says should be considered is allowing older adults with limited incomes who have built equity in their homes to defer—not eliminate—paying property taxes. Taxes would still accrue and would be paid back with interest when the owner sells the property or dies, Marr notes.

Under another type of potential relief program, if residents’ tax bills exceed a certain percentage of their income, they would ultimately only be responsible for a portion of the overage, not the full amount, Marr says.

AARP Indiana also wants lawmakers to make it so all Hoosiers have the option of paying property taxes in smaller installments, versus having to make large, lump-sum payments.

Some counties use flexible plans, but it’s not a statewide practice, Marr says. Monthly payments could help taxpayers avoid delinquency.

Finally, AARP Indiana wants educational information to be included with property tax bills and other mailings to help reach residents who may be eligible for relief programs but don’t know it.

The state has two such programs for lower-income Hoosiers over age 65. One reduces assessed values by $14,000 or half the assessed value, whichever is less, for properties valued at $240,000 or less. Lower value equates to lower taxes. The other prevents their property taxes from increasing by more than 2 percent over the previous year.

Property taxes are one of the top concerns that state Sen. Travis Holdman (R), who represents several northeast Indiana counties, hears from his constituents, including older residents who say inflation and taxes have put them in precarious positions.

“Seniors on fixed income just have a difficult time making their way and paying all their bills,” says Holdman, who sits on a tax review task force that is working on recommendations for the upcoming session.

Aging in place

Improving access to home- and community-based services, such as transportation and adult day services, also ranks high on AARP Indiana’s advocacy priorities.

A nearly $1 billion forecasting error last year led to a Medicaid crisis in the state, including lengthy waits for home- and community-based care. Such services allow people to continue living at home independently and are often less costly than institutional care, Marr says. As of October, there were nearly 9,000 people on the waiting list for an HCBS program that provides services to adults 60 and over, according to the Indiana Family and Social Services Administration.

AARP Indiana plans to encourage the General Assembly to help the state’s long-term care system meet increasing demands, including HCBS provided through Medicaid, the joint state-federal health insurance program for low-income Americans.

Older adults and their families have been in limbo when it comes to making care decisions for themselves and their loved ones, says state Sen. Fady Qaddoura (D-Indianapolis), who sits on the state’s Medicaid and budget committees. More HCBS slots would help, says Qaddoura, adding that he believes the state has been too conservative when estimating the number of slots needed.

To follow AARP Indiana’s advocacy work, go to aarp.org/legislativethings.

Sarah Hollander, a freelance writer and former daily newspaper reporter in Cleveland, has written for the Bulletin for 15 years.

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