For years, a quiet feature of Indiana's property tax system frustrated taxpayers: when assessed values rose, local governments could collect more money without ever taking a recorded, public vote on the increase. The growth simply happened. Senate Enrolled Act 1 changed that. Beginning in 2026, local political subdivisions that want to raise their rate or levy must do so by ordinance, following a public hearing — even when assessed value growth alone would have funded the increase.
This is one of the less-discussed provisions of SB 1, but it may be the most useful to an ordinary taxpayer. It hands you a seat at the table.
What Actually Changed
The mechanics are straightforward. A "local political subdivision" includes the bodies that levy property taxes against your parcel:
- Cities and towns
- County government
- School corporations
- Library districts
- Townships and special districts
Under the new requirement, any of these units seeking a rate or levy increase must:
- Schedule and notice a public hearing, and
- Adopt the increase by ordinance at a recorded meeting.
Before 2026, value-driven growth could flow into a unit's budget without that explicit, public legislative act. Now there is a documented decision point — and a microphone you can step up to.
How This Differs From the Levy Growth Quotient
It is easy to confuse this with the maximum levy growth quotient (LGQ), so let's draw a clean line. They are separate, stacked controls.
| Control | What it limits | Who acts |
|---|---|---|
| Maximum levy growth quotient | The statutory ceiling on how much most levies can grow | Set by formula statewide |
| Ordinance + hearing requirement | Forces a public, recorded vote to take an increase | Your local unit |
The LGQ caps how much a levy can grow in a year. The new ordinance requirement governs how a unit must act to claim that growth. A unit can no longer absorb rising assessed values into a larger levy silently; it has to vote, in public, with you watching. The LGQ formula itself is also being reworked for future years — we cover that in our levy growth quotient 2027 explainer.
Note
The ordinance-and-hearing rule does not lower your bill on its own. It is a transparency and participation mechanism. Its value depends entirely on taxpayers actually showing up. An empty hearing room is a rubber stamp.
Where and When These Hearings Happen
Levy and budget decisions cluster in the second half of the year, because Indiana units finalize budgets for the following year in the fall. That means the practical window to engage runs through late summer and autumn.
Watch for hearing notices in these places:
- Your local newspaper of record and the unit's official website
- County and municipal meeting agendas
- The DLGF's budget notices and the state's transparency tooling
If you already use the Indiana property tax transparency portal, it is a good launching point for tracking which units affect your parcel and what they are proposing.
How to Show Up and Weigh In
A public hearing only works if the public participates. You do not need to be a budget expert. You need to be specific.
- Confirm your taxing district. Know exactly which units levy against your property — they are listed on your tax bill.
- Read the proposed ordinance before the meeting. Notices typically include the proposed levy and rate.
- Bring a focused comment. "My assessment rose 12% and I want to understand why this unit also needs a levy increase on top of that" is a question they must engage with.
- Submit written testimony if you cannot attend in person; most units accept it for the record.
Why it matters for your bill
Your property tax bill is the product of your net assessed value times the combined rate of every unit in your district. Each unit that raises its levy nudges that combined rate. Circuit-breaker caps limit the damage at the top end, but for many homeowners the bill sits below the cap — which means a levy increase passes straight through to what you owe. Showing up at the hearing is the earliest, cheapest point of leverage you have.
The Bigger Revenue Picture
SB 1 also reshapes how local units fund themselves beyond property taxes, including changes to the local income tax framework over 2026 through 2028. If a unit feels squeezed on the property side, it may lean on other levers — context worth understanding, which we cover in SB 1's local income tax replacement. For a professional summary of the full reform, the KSM SB 1 analysis is a solid reference, and the DLGF publishes the official budget and levy materials.
Find Your Property
To know which units levy against you, start by looking up your parcel. Browse the Indiana property explorer or open a county such as Marion County to see the taxing district and assessed value driving your bill.
Our property lookup tool shows the units in your district at a glance, and if a rising levy has pushed your bill too high relative to your value, our tax appeal service can help on the assessment side.