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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?
Crafting a budget at any level—state, city or one’s own household—is the fiscal equivalent of a root canal. It is one of those painful yet necessary tasks expected of elected officials, civic leaders and responsible Hoosiers across Indiana.
This year, an already difficult task was made even more challenging with the property tax reform bill—Senate Enrolled Act 1—signed into law in April. The local government finance bill lowered property taxes through tax credits and deductions and limited how much communities can raise through property taxes.
For Carmel, this meant 2026 property tax revenue will be $10 million lower than expected pre-SEA 1 revenue. Similarly, by 2030, our city’s yearly property tax revenue could shrink by a substantial $38.1 million when compared with expected pre-SEA 1 revenue.
As a result, the 2026 budget process for Carmel was unlike any in its recent history. We developed a budget that faced the new reality of our revenue-constrained environment seriously while investing in public safety, infrastructure, arts and parks.
Ultimately, our City Council passed Carmel’s budget passed by a 9-0 vote. I am grateful to council members not only for their input, but also for understanding our new budget realities.
Our situation is not unique.
Mayors and councilors throughout the state were not shy in expressing how this bill would hurt services and enhancements in their cities.
I joined other city leaders who testified at the Statehouse, and we discussed our concerns with media. And we were honest about the pain of future budgets when explaining the impact to our constituents at public meetings, community events and through our responses to their questions.
As a taxpayer, I appreciate the cost saving that property tax reform will provide my family. The system is opaque, unpredictable and challenging for homeowners and small businesses. If belt-tightening at the local level helps bring clarity to Hoosiers, Carmel is more than willing to do its fair share.
As a city executive, however, it must be said that while our property tax system is far from perfect, so are the reforms in SEA 1.
During the 2026 legislative session, I welcome a chance to share the real impacts of the act and why our budgets simply cannot sustain the tremendous drop in revenue forecasts if we are to meet the needs and expectations of our residents.
We cannot have, as a foundation for reform, a veiled notion that so much of spending at the local level is unnecessary or, even worse, unneeded. Every year, Hoosiers move to Carmel and other growing Indiana cities not despite our spending but because of it. These residents are voting with their feet and sending a message loud and clear that they want local government to provide the services they value.
As mayor, it’s my responsibility to make financial decisions not for the next fiscal quarter but for the next quarter of a century.
I appreciate feedback I’ve gotten from Statehouse leaders this year, and I look forward to continued conversations and welcome legislative changes that ensure Carmel and Indiana’s continued success in attracting talent and jobs. Cities are the economic engines of our state. Together, local leaders and state legislators can keep Indiana strong.•
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Finkam, a Republican, is mayor of Carmel. Send comments to [email protected].
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