Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Senate Bill 1 will shrink local property tax base, consultants say; municipalities can adopt new income tax
Summary
Consultants Jeff Rau and Adam with Wilcox briefed Westville leaders that Senate Enrolled Act 1 will lower taxable assessed values by changing homestead deductions and business personal property rules, increase circuit‑breaker losses and give municipalities with 3,500 or more residents the option to adopt a municipal income tax capped at 1.2%.
Consultants Jeff Rau of Incertile and Adam of Wilcox told the Town Council of Westville that state legislation called Senate Enrolled Act 1 (SEA 1) will change how homestead deductions, business personal property exemptions and local income taxes are calculated, and that those changes are likely to reduce the town’s property tax base.
SEA 1 will phase in changes to the homestead standard deduction and the supplemental homestead deduction. Consultants noted the current standard homestead deduction is $48,000 and that the supplemental homestead deduction is moving from about 37.5% toward roughly 66.7% over the phase‑in. Rau said, “we're gonna see a reduction in property tax revenue as a…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
