Republican gubernatorial candidate Mike Braun unveils plan to make major changes to property taxes | WBOI

Republican gubernatorial candidate Mike Braun has unveiled a plan that would make sweeping changes to the state’s property tax system, saying “nothing is more important” than controlling costs so homeowners can stay in their homes.

Currently, part of the property tax calculation is the standard homeownership deduction: 60 percent of the gross appraised value of your home or $48,000, whichever is less. There is also an additional homeownership deduction, which is 40 percent of the remaining appraised value.

Braun’s plan removes the cap on the standard homestead deduction and eliminates the additional deduction for all homes worth at least $125,000. Homes under that amount would retain the cap but get a 60 percent additional deduction.

Property tax rates are more complicated, and his plan doesn’t touch on them. But the bottom line is that on a $200,000 house with a 2 percent property tax rate, you’ll save $224 this year under his proposal.

In the future, the plan would also limit property tax increases to 2 percent for older homeowners, low-income Hoosiers and families with children under 18 — and to 3 percent for everyone else.

Property taxes fund local governments and schools, not the state — and the Braun campaign wouldn’t say how those lost dollars would be replaced. They said they hope his plan starts a conversation about “delivering effective government services without budget growth and overburdening homeowners.”

READ MORE: Libertarian Candidate Donald Rainwater Wants to Limit Property Taxes Based on Purchase Price

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Democratic candidate for governor Jennifer McCormick said Braun has voted in favor of raising property taxes in the past and accused him of saying anything to get elected.

Libertarian Donald Rainwater said Braun’s plan only reduces rising tax bills and does not stop the increases entirely, as Rainwater’s proposal, released earlier this year, does.

Braun’s policy proposal would allow local referendums to raise property taxes above the caps his plan would impose. But those referendums would only be allowed in general elections at the state level — not in primaries and not in municipal election cycles.

Local governments should also include more information in those referendums, particularly about how much the proposed tax increase would increase the median tax bill.

Brandon is our Statehouse bureau chief. Contact him at [email protected] or follow him on Twitter via @brandonjsmith5.