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Danville Community School Corp: Indiana property-tax overhaul will lower local revenue; district to reduce budgets
Summary
Dr. Morgan Walker said Senate Bill 1, passed by the 2025 General Assembly, changes property-tax deductions and credits—lowering assessed values and reducing revenue for local governments; Danville Community School Corp will implement budget reductions across operations, education and debt-service funds.
Dr. Morgan Walker, presenter for the Danville Community School Corp finance series, said Senate Bill 1, passed during the 2025 General Assembly session, will reduce the district's property-tax revenue and force spending cuts.
"It eliminates the standard deduction and instead increases the supplemental homestead deduction up to 66.7% of a home's assessed value," Walker said, adding that the bill also "allows for local property tax credits which can provide up to $300 credit on a property tax bill depending on local decisions." She described additional changes that target certain property types and business equipment.
The bill creates a new deductible category for some property types, Walker said, noting rental properties, agricultural land and long-term care facilities may qualify for a deduction under the law’s 2% tax-cap provisions. Walker also said SB1 increases the exemption on business personal property, "reducing the taxable value of equipment and other assets owned by businesses." Taken together, she said, the changes "lower the net assessed value of homes, businesses, and other properties."
Because local governments calculate property-tax revenue using assessed value, Walker said the district expects dollar reductions to municipalities, counties, libraries, fire territories and local school corporations. "These decisions are not made lightly," she said, describing the district's approach as focused on fiscal responsibility while continuing to prioritize student learning.
As a direct response, Danville Community School Corp has "had to respond by implementing budget reducing measures across several areas, including our operations fund, our education fund, and our debt service fund," Walker said. She said the finance series will address specific budget changes in a subsequent installment and urged viewers to review earlier episodes for background on the district’s funds.
The district did not list specific line-item cuts or dollar totals in this segment. Walker said the next video in the series will explain "what those budget reducing actions actually mean and how they impact our district."
