FROM INDIANA PUBLIC BROADCASTING

Indiana legislative leaders have indicated they are unlikely to pursue major changes to the state’s tax system during the 2025 legislative session.

After a two-year review of the tax code, initially focused on possibly eliminating the state income tax, lawmakers have shifted their attention to property taxes. Senate Republican leader Rodric Bray said that while some adjustments might be made, transformative changes are not expected.

“I don’t know that you’ll see really big changes happen this year — maybe some tweaks to kind of help people feel a little less of a pinch than they have,” Bray said.

House Democratic leader Phil GiaQuinta emphasized that changes to property taxes could impact local governments, potentially requiring new revenue sources.

“If we’re going to take away from one, how do we replace it to make sure local governments can function the way they need to?” GiaQuinta said.

House Republican leader Todd Huston pointed to the two-year study as evidence that the current tax structure is already effective in fostering growth.

“We are attracting people; we are attracting investment,” Huston said. “Part of the reason we’ve done that, a lot of the reason we’ve done that is we’ve got a great tax system — a stable tax system, a reliable tax system.”