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Madison council urges state to reject property tax cut without full replacement funding
Summary
The Madison Common Council unanimously adopted a resolution opposing parts of Senate Bill 1 that would cut property tax revenue without guaranteed state replacement funds, saying the proposal would threaten municipal services and shift burdens to residents.
The Madison Common Council on Tuesday adopted Resolution 2025-3C, opposing legislation that would reduce local property tax revenue without fully replacing that funding at the state level. The council said the change would put municipal services and long-term investments at risk.
The resolution frames the proposed state bill as providing targeted relief on its face but warns the bill’s broader provisions would reduce municipal revenue significantly. “We support targeted property tax relief for those in need, our veterans, our seniors, low income residents,” said Mr. Jenner, a city official who presented the resolution, while urging lawmakers to provide full replacement funding.
The nut graf: Council proponents said property taxes currently fund roughly 40% of the city’s annual general operating budget and argued a statewide reduction could force cuts to police, fire, streets and other core services. The resolution cites local estimates that the city could lose roughly $4.5 million over three years and cites statewide loss estimates ranging from about $1 billion to $1.5 billion annually depending on amendments to Senate Bill 1.
Council discussion emphasized the potential local impact. One council member characterized the legislature’s current approach as insufficiently protective of municipal budgets and voiced support for broader, more equitable relief; another stressed the resolution seeks targeted relief for vulnerable residents while insisting on full replacement funding for municipalities.
The council voted by roll call; all members present voted in favor. The resolution directs the city to transmit its position to state lawmakers and stakeholders and to ask the Indiana General Assembly to reject tax changes that lack full, equitable replacement revenue.
Ending: The resolution is an advisory position asking state lawmakers to preserve local funding streams unless the state provides an equitable replacement mechanism. The council’s action will be forwarded to legislators for consideration as Senate Bill 1 continues through committee and floor action in Indianapolis.
