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Town warns Senate Enrolled Act 1 could cut Meridian Hills revenue by about $20,000–$30,000
Summary
Town Accountant Higgins told the council Senate Enrolled Act 1 changes could shrink the town’s tax base and reduce revenue by roughly 10%, an impact the council said it will address as it prepares the 2026 budget.
Meridian Hills — Town officials told the council May 12 that changes in a recently passed state property tax bill could reduce the town’s revenue and complicate next year’s budget.
Town Accountant Higgins provided a high‑level explanation of Senate Enrolled Act 1 and its mechanics: the law alters homestead exemptions in a way that lowers the taxable base while raising the tax rate, and it creates a net property tax credit next year equal to either 10% of a property tax bill or $300, whichever is less. Higgins said the credit is shared across taxing entities in a jurisdiction and estimated the Town could see a roughly 10% reduction in revenue, which he quantified as about $20,000 to $30,000.
Clerk‑Treasurer John Dillon noted that while property tax receipts would fall under the new law, income tax receipts may offset some effects; he emphasized the council must incorporate the change into the 2026 budget schedule. Council members set the 2026 budget introduction and public hearing for Sept. 8, 2025, and scheduled adoption for a special meeting on Oct. 13, 2025.
The council did not adopt any mitigation measures at the May 12 meeting. Officials said they will review cash‑flow documents and further refine revenue estimates at upcoming meetings so the council can consider any adjustments when it adopts the 2026 budget.
