Indiana lawmaker pitches end to property taxes
Indiana State Rep. JD Prescott is proposing to eliminate property taxes and replace them with a 7% sales tax on many services, calling it a simpler and more equitable way to fund government.
Speaking with Ethan Hatcher and Brian Baker in an interview on 9-Noon, Prescott said the proposal would eliminate property taxes on homes, businesses and rental properties while exempting essential services such as medical care, education and social services. The plan would also eliminate county assessor offices and reduce administrative work for local governments.
To ease the transition, Prescott’s proposal includes a reserve account and a six-month overlap between the old and new systems. Service tax collections would begin July 1, 2028, with the new funding model taking effect Jan. 1, 2029.
Prescott said the proposal shifts the tax burden from property ownership to consumption. He estimated that for every $1,000 a homeowner currently pays in property taxes, they would need to spend about $14,300 on taxable services to pay the same amount under the new system.
Addressing concerns about renters, Prescott said some could pay more in service taxes but argued those costs are already passed along through landlords. He added that the proposal is still in its early stages and encouraged Hoosiers to share feedback as the legislation develops.
You can listen to the full interview here:
