Approximately 300 residents attended a meeting in Warsaw on September 29, 2026, to hear a proposal to eliminate property taxes on owner-occupied homes. The event, organized by three high-ranking legislators, included additional lawmakers and local government officials concerned about potential revenue cuts.
Sen. Ryan Mishler, R-Mishawaka, explained that proposals to completely eliminate property taxes are not realistic due to $54 billion in local debt backed statewide by revenue. Instead, Mishler introduced a solution that already exists: local governments could increase their local income tax rate and use that to provide a full 100% credit on property taxes for owner-occupied homes, phased in over a five-year period.
Mishler stated that all but 14 counties have the capacity to cover the full amount, with those counties reaching that capacity over time due to reforms passed in 2025, known as Senate Enrolled Act 1. Mishler gave the example of Kosciusko County needing to cover $44 million in homestead property taxes, noting that a 100% credit would result in a zero property tax bill.
Mishler also mentioned that a credit avoids shifting taxes to other property classes, such as agriculture or business. He emphasized that the decision would be made locally, with the money being their own.
Property taxes on owner-occupied homes amounted to nearly $4.1 billion, or 38%, of the $10.6 billion in statewide property taxes billed during 2025, according to a Legislative Services Agency report.
The trio of legislators took questions from the crowd, which included several people pushing back on the idea and others saying they were not doing enough. One person asked, “When the state has excess revenue why aren’t you kicking some of that revenue back to the counties?” Another person argued that a large part of local property tax use is for public safety.
Sen. Chris Garten, R-Charlestown, responded, “If I’m a taxpayer I think anyone here who is a local elected official should have to justify why you need more money out of my pocket. That’s the case you make to your taxpayers.” Garten is set to become the next Senate president pro tem after the November election.
Mishler ended the event by noting that he personally would likely pay more in income taxes than he would save on property taxes because he has downsized his home.
