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Madison mayor warns proposed property tax reform could cut millions from city budget
Summary
Mayor told the City Council that a proposed state property tax reform could reduce Madison’s property tax revenue by about $2 million across the next three budget cycles and possibly $4–5 million if companion legislation advances; he said he will testify before the House Ways and Means Committee.
Madison Mayor told City Council on Tuesday that proposed state property tax reform would sharply reduce the city’s property tax revenue, potentially by about $2 million over the next three budget cycles and by $4 million to $5 million if related bills pass.
The mayor said the reduction would hit the city’s general fund and could affect parks, police, fire, streets and other local services. “Right now our property tax revenue is just a little over $7,000,000,” he said, noting that those funds cover most general fund expenses and roughly half of the city’s overall budget.
The mayor framed the issue as a statewide concern but emphasized local consequences. He told council members that he will testify to the Indiana House Ways and Means Committee the next day along with other mayors to press for amendments that would target relief to seniors, veterans and low- and moderate-income residents rather than broad statewide cuts. He said the proposal already on the table is an amended version but still could cause a compounding revenue loss over multiple years.
Council members were told the administration has been sharing analyses via the Association of Indiana Municipalities (AIM) and that residents should contact state legislators about impacts to Madison. The mayor said the city is working to preserve revenue and manage budgets responsibly but that significant reductions would force cuts or service changes.
The mayor did not identify the bill by statute number; he described the legislation as “property tax reform” and said companion measures could increase the revenue loss. He urged residents and council to monitor developments and stated he would provide updates after testifying.
If the proposals advance as described, city officials said they would need to reflect reduced property-tax revenue in upcoming budgets and identify which services or capital investments would be affected.
