Consultant warns Senate Bill 1 will shrink Greater Clark's assessed value and push tax rates higher

Jane Herndon of Policy Analytics told the Greater Clark County Schools Board of Trustees on Aug. 12 that Indiana's Senate Enrolled Act 1 (commonly referred to as Senate Bill 1) will materially change the district's tax base and revenue over the next decade.

"We are seeing over the next five years, assessed value decrease," Herndon said during a presentation the board scheduled ahead of the district's August budget work. Herndon walked trustees through several provisions she said will lower net assessed value: an expanded supplemental homestead credit (the lesser of 10% of a homeowner's tax liability or $300) phased in through 2031; new deductions for property taxed at a 2% cap (for example, apartments and certain long-term care facilities); and a larger business personal property exemption (raised, per the presentation, from $80,000 to $2,000,000), effective beginning in 2027 for the district.

Herndon projected that Greater Clark's net assessed value would fall about 17% between 2025 and 2031 once the bill's deductions and exemptions fully phase in. That reduction, she said, means tax rates will increase to collect the same levy. "Due to Senate Bill 1, the tax rate is…