Town accountant: Indiana property-tax change could cut Meridian Hills revenue about 10%

Town Accountant Higgins told the Meridian Hills Town Council on July 14 that Senate Enrolled Act 1 — a state property-tax change — is expected to reduce the town’s property-tax revenue by about 10% when its effects appear in the town’s budgets beginning in 2028. He said the reduction could be as much as 20% in a worst-case scenario and estimated the loss could reach about $70,000 for the town’s police department.

Higgins explained that the changes will not show up in town budgets until 2028 and that excluded towns in Marion County that have more than 3,500 residents may adopt a local income tax of up to 1.2%; Meridian Hills does not meet that 3,500-resident threshold and therefore cannot adopt a local income tax on its own. Council Member Gordon asked whether the loss could be 20%; Higgins confirmed it was possible and said the town could petition Marion County for additional tax revenue if needed.

Clerk-Treasurer Dillon and Higgins also reviewed the budget calendar: the council will introduce the 2026 budget (and hold a public hearing) at its regular meeting on Sept. 8, 2025, and will take final adoption at a special meeting on Oct. 13, 2025. Dillon recommended waiting to see how the legislation and subsequent rulemaking evolve before proposing major changes to the town’s revenue assumptions.

Why it matters: the property-tax revenue decline Higgins outlined would tighten Meridian Hills’ general fund and could force trade-offs in services or require alternative revenue requests to Marion County. The council did not take any formal budgetary actions at the July 14 meeting beyond setting the 2026 budget dates; the town’s next step is to develop draft budget assumptions ahead of the September introduction.