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In the 2026 legislative session, should lawmakers make any changes to the property tax law they passed this year that cut property taxes and has reduced revenue for cities, towns and counties?
This year, the Indiana General Assembly passed Senate Enrolled Act 1, a well-intentioned effort to cut property taxes for Hoosier homeowners. But for cities like Westfield, one of the fastest-growing communities in America, the legislation is already showing dangerous cracks.
Westfield has grown more than 50% in the past decade. With that growth comes responsibility: maintaining safe streets, building new roads, and expanding police and fire protection to keep up with demand. Our residents expect the same level of service they’ve always had, regardless of how fast we grow.
Unfortunately, SEA 1 cuts directly into the revenue cities depend on to deliver those essential services.
Public safety is the first area at risk. We’ve worked hard to increase staffing and stations with the Westfield Fire Department, because seconds matter in an emergency. The same goes for our police department, ensuring we have enough officers on patrol to protect our growing neighborhoods and schools. But when state policy reduces our ability to fund personnel and equipment, it becomes harder to guarantee that help arrives when people need it most.
Infrastructure is another casualty. Every year, we invest millions in roads, trails and stormwater systems to keep pace with new development. When revenue is constrained, maintenance gets deferred, and long-term costs multiply.
Financial stability is also on the line. Standard & Poor’s has already voiced concerns that SEA 1 could hurt the bond ratings of cities like Westfield—and any Indiana municipality with outstanding bonds. While the agency hasn’t taken action yet because the bill has not gone into effect, its warnings are serious. A downgrade could raise borrowing costs for communities statewide, limiting our ability to invest in the very infrastructure and services our residents rely on.
Further complicating matters are upcoming changes to the local income tax system. Beginning in 2028, all existing expenditure rates will expire unless renewed, and the current structure will be replaced with a new system capped at 2.9%. Local income tax councils will be eliminated, and each county’s fiscal body will become the adopting authority. Starting in 2028, cities and towns with populations over 3,500 may adopt their own local income tax rate, but these rates must be renewed annually beginning in 2031. This uncertainty makes long-term financial planning even more challenging at a time revenue is already shrinking.
SEA 1 was meant to help Hoosiers. To ensure it truly does, lawmakers must revisit the law in the 2026 session and make thoughtful adjustments, such as phased implementation, revenue-sharing for high-growth communities or temporary state bridge funding. Local governments are on the front lines of serving residents. We need the tools and resources to keep our cities safe, our infrastructure strong and Indiana’s fiscal future stable.•
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Willis, a Republican, is mayor of Westfield. Send comments to [email protected].
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