IN SB0081

Increases the maximum local income tax (LIT) rate from 2.9% to 3.75% and repeals the requirement for counties and municipalities to annually readopt their LIT rates beginning in 2031

Restores the standard homestead deduction for properties assessed at $125,000 or less (60% of value up to $48,000), while maintaining the phase-down for higher-valued homesteads enacted in SEA 1 (2025)

Creates new tax credits and deductions: $3,000 income tax credit for first-time home buyers at or below 200% of federal poverty level; $3,000 income tax credit for low-income households; increases renter's deduction from $3,000 to $6,000; and provides property tax deductions for permanently disabled veterans based on their disability percentage

Establishes a property tax liability freeze for low-income seniors (age 65+, income at or below 200% of federal poverty level), capping their homestead property taxes at the prior year's amount

Repeals the debt limitation for political subdivisions under IC 36-1-15, removes project cost thresholds for controlled projects, and repeals provisions requiring separate public hearings before a political subdivision increases its tax levy from the prior year