INDIANAPOLIS It has been a busy day for Governor Mike Braun, who signed Senate Bill One into law Tuesday after lawmakers sent it to him late last night. The legislation aims to give property tax relief and was a priority bill f or the Governor and Senate republicans. Governor Brauns off says it is anticipated to save Hoosiers $1.3 billion in long-term tax reform. Senate Enrolled Act 1 implements several measures to make them more affordable. The bill introduces new deductions for certain homeowners, reducing the taxable value of their homes. Additionally, it places limits on the total amount of property tax that local governments can impose.Trying to give more deductions to change the gap between your net of your taxable value rather than just the overall market value," Justin Ross, a professor of public finance and economics at Indiana University, explained.Concerns about home assessments, which determine the value of properties, have been a significant topic among Hoosiers. Many are puzzled about why assessed values are increasing. Ross identified several factors contributing to this trend, particularly emphasizing the impact of the pandemic and inflation.As the dollar became weaker, it increased the price of goods and the purchasing power of money, so we saw that get translated into higher housing prices as well, Ross said.Under the new law, by 2030, 33 percent of a property's value will be taxable, it creates a flat rate that aims to reduce property owner's tax bills. The measure also alters how local governments can tax residents. Supporters of the legislation have suggested that this will provide long-term property tax relief."You are paying property taxes to schools; you are paying them to counties, cities, and so on. If you add up those tax bills, the property tax cap says you can't be above one percent of those tax bills of the market value," Ross added.While the new law is expected to save property owners up to $300 on their bills, it also grants municipalities new local income tax powers. If these powers are enacted, they could result in higher income tax bills.It would certainly be possible that you get a relatively small taxable value change on the property tax side and then you'd get a new higher income tax if your municipality decides to do that; that would be higher than that, Ross noted. ...read more read less