Property Tax Disaster About to Get Worse

I went to a meeting last night in Brownsburg, where I live, with the school system. They were talking about property tax laws, school funding, and what’s going to happen with your property tax bills. Even though it’s specific to where I live, the information is important to everyone who can hear my voice. So I thought it was important enough to lead with it. A little background. We’ve mentioned this before: the Brownsburg school system is actively trying to avoid a school referendum. And they deserve a lot of credit for that. Brownsburg is one of the few school systems its size — especially one considered successful by state standards — that does not have a school referendum. Now, to be fair, they did try to pass one before. It failed. And to their credit, they’ve decided not to keep pushing it. They looked at the community and realized it probably wouldn’t pass. So they’ve taken the path of least resistance — which is good. That’s what we should want every school system to do: avoid raising taxes. Sadly, that’s not what most school systems do. Most of them know they can bully, intimidate, and use kids as human shields — our favorite phrase, right? — to convince parents that if taxes don’t go up, education will suffer. That’s the playbook. Unless we get what we want, your child’s education will suffer But Brownsburg hasn’t done that. Full credit to them. Other districts should learn from their approach. Instead of pushing referendums, they’ve been holding public meetings a couple times a month. They’re explaining: * what they’re doing * the impact of Senate Bill 1 * the impact of other tax legislation They’re also asking people to advocate to the General Assembly to make school funding more fair and equitable. Because the school funding system is a dumpster fire. Like most things in government, they say there’s a rhyme or reason to it — but there really isn’t. It’s unfair. And it punishes success. Believe it or not, the school funding formula actually punishes school districts that perform better. The better you do, the more you get punished financially. Isn’t that wild? So last night at this meeting, they explained something that confirms what I’ve been saying for a long time. Despite all the bluster from the governor and the General Assembly, Senate Bill 1 is not going to lower property taxes in the long run. In fact, property taxes will continue to skyrocket. Why? Because they didn’t address the real issue: assessments. Your taxes rise based on what someone else sells their house for. You don’t sell your home. You don’t make any money. But your tax bill goes up anyway. This is basically the same thing Kamala Harris proposed with unrealized capital gains taxes on stocks. Property taxes are essentially a tax on unrealized gains. The state says your house is worth X. You say, "But I didn’t sell my house.” They say, “Yeah, but if you did sell it, that’s what it would be worth. So that’s what we’ll tax you on.” That’s exactly what Kamala Harris proposed. When she proposed it, Republicans called it communist socialism. But when Republicans do the exact same thing through property taxes, suddenly it’s fine. So ask your representatives: What’s the difference? At the meeting, Brownsburg presented a projection model. They used a home valued at $316,550, which they said is roughly the average home price in Brownsburg. Right now, that homeowner pays about $3,165.50 in property taxes. Why? Because homesteads are capped at 1% of the home value. Think about that. You pay over $3,000 every year just for the privilege of living in your own home. And if you don’t pay it? The government can take your house. We’ve seen it happen. They then projected what happens over the next ten years. By 2035 that same home would pay $4,214 per year in property taxes. That’s an increase of over $1,000. And that’s because assessments will keep rising faster than the tax credits. The $300 credit people are getting right now is basically a trick. Some people will see a lower bill this year. But that’s the con. The state wants you to see that reduction and think the system was fixed. Meanwhile, assessments will keep rising — and eventually wipe it out. It’s the frog in the boiling pot of water. And here’s the real kicker. The biggest tax cut in Senate Bill 1 wasn’t for homeowners. It was for businesses. Specifically through something called personal property tax — the tax on equipment and assets businesses own. That’s where the massive tax cuts went. Some businesses will save tens of thousands of dollars every year. Meanwhile: * homeowners get almost nothing * school revenue shrinks * schools push referendums * income taxes rise That’s the system the General Assembly created. And here’s something else that came up at the meeting. A guy from the Brown Township Board of Trustees spoke. Brownsburg is split into two townships: Brown and Lincoln. He said the township has so much extra money — and nothing to spend it on — that they allocated $500,000 for an exercise room at the fire station. Half a million dollars. Now, that’s his claim — not mine. He’s on the board. He said it in a public meeting. About 100 people heard him. That doesn’t mean you’re anti-firefighter if you’re outraged by that. But think about it. We’re constantly told there’s no money for roads. No money for schools. Yet local governments have so much excess money that they can casually spend $500,000 on a gym. That’s the system Republicans in the General Assembly have created. Local governments claim the sky is falling. Then you see things like this. “Here’s half a million dollars. Build yourselves a workout room.” Sure. Why not.