PROPERTY TAX REFORM SHOULD BE TARGETED TO HELP LOW-INCOME RESIDENTS by Mayor Bob Courtney

This week I'm heading to Indianapolis to testify for legislation that provides targeted property tax relief to those who need it most—seniors, veterans, and first-time homebuyers—while ensuring communities like Madison continue to have adequate funding for essential services. Before I make the trip, I want to explain what property taxes fund in Madison and why current proposals are shortsighted.

As I shared in my recent State of the City address, Madison is experiencing unprecedented momentum. Tourism spending is up 17% to over $60 million with a direct economic impact of

$20 million. We've attracted over $200 million in new investments across our city in just the past couple of years. Our riverfront has become the jewel of the Ohio River, drawing 1.7 million visitors annually. We've made historic investments in infrastructure, with 8.4 miles of roads paved and 20 blocks of new sidewalks in 2023-24 alone. Our police and fire departments have responded to thousands of calls and invested thousands of hours in training to keep our community safe.  Whether it is a police or fire emergency, or unsafe roads due to severe weather, we are there to respond 24hrs a day, seven days a week. 

All of this progress and enormous investment has been achieved by efficiently raising funds to attract outside investment, while keeping debt obligations and property tax rates low. Our property tax rate has increased by 1.85% annually over the past four budget cycles—far below inflation. For the average property taxpayer, that's 2.3 cents per $100 of assessed value over the past four years.

Your property taxes fund just about 60% of the general operating budget that includes salaries and benefits for police, fire, streets, planning and zoning, code enforcement,  parks department, communications,  and the Clerk-Treasurer’s office.  With post-Covid high inflation, our property tax revenue increases have not kept up, so we are always reprioritizing what it takes to keep our community clean, safe and beautiful for all and searching for other revenue sources to maintain our high expectations.    The legislation as presented through Senate Bill 1 and other companion bills threatens to undermine the fiscal responsibility and progress we’ve made in several concerning ways:

Senate Bill 1 would cap the Maximum Levy Growth Quotient (MLGQ) at 0% in 2026, 1% in 2027, and 2% in 2028. This would create an immediate funding shortfall of over $300 million statewide in the first year, growing to $800 million by year three. For Madison, this would result in a funding reduction of almost $2 million over the next three budget cycles, which will severely restrict our ability to maintain essential services and infrastructure that our residents depend on daily.

The damage goes beyond immediate cuts. By permanently reducing the base for future growth, the impact compounds year after year. This means fewer resources for public safety, street maintenance, parks, and other vital city services that maintain our quality of life. It also means less investment in addressing deferred maintenance items all across the city, particularly roads, sidewalks, and parks.

I am very concerned that the proposed Senate Bill 1 would not benefit those who need it most, but actually cause even more of the tax burden to be shifted onto them in the form of local income taxes and other fees that we are being told by the General Assembly is going to be required for future funding.

We have been purposeful to pursue new opportunities for Madison with fiscal prudence. Examples include, the recent opening of Crystal Beach Aquatic Park, completion of our $13 million water infrastructure project, the groundbreaking for the construction of Residences at Sunrise Crossing, our $12 million Clifty Drive project, our neighborhood paving program and soon to be Main Street Corridor reconstruction that will enhance Madison's appeal as a place to live, work, and visit. The MLGQ freeze would hinder our ability to fulfill these commitments.

I firmly believe in careful stewardship of taxpayer dollars, and our record demonstrates that commitment but funding for essential services has to keep up with inflation, at a minimum. Madison has leveraged public-private partnerships and strategic relationships with the Community Foundation, Bethany Legacy Foundation, the Chamber of Commerce, Madison Main Street, Jefferson County, and the State of Indiana to maximize impact while keeping property taxes low.

As your Mayor, I will continue advocating for Madison's best interests as the General Assembly considers this legislation. I encourage you to contact your state representative Alex Zimmerman and State Senator Randy Maxwell to express your views on how this bill might affect our community. Together, we can ensure that Madison's bright future remains secure.

Madison is a unique city, unlike any other in the state with vastly different needs than most.  My administration remains committed to continuing the remarkable progress we've made together. As I said in my State of the City address: "Investment is the currency that helps our community grow. Together, let us answer the question about our vision for our community, and then let's go out and do it!"

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