Disabled Veterans Worried About How Indiana's Property Tax Relief Bill May Affect Them

It was a lengthy debate day on the House floor at the Indiana Statehouse on Wednesday afternoon. Senate Bill 1 the legislation aimed at modifying property taxes in Indiana.

Multiple amendments proposed by several Democratic lawmakers were unsuccessful.

A final vote on SB 1 might arrive by Thursday, April 10.

Governor Mike Braun issued a statement expressing his support for the plan; however, certain Indiana veterans are opposing sections of the legislation, fearing potential adverse effects.

There has been significant opposition fromdisabled veterans regardingSB 1. TheAmerican LegionDepartment ofIndianahas encouraged these veterans to reach out totheir legislatorsandBraunto expressthattheHouseversionofSB 1does not adequately support disabled veteransinIndiana.

"We purchased this property way back in 1996, and we've remained blissfully married ever since," stated 80-year-old Ron Wilson from Noblesville, where he continues to live with his spouse of over five decades.

Wilson brought up five children under his roof. Seven grandchildren have scaling the tree in the front yard.

Wilson stated, “We adore it. Although it feels like the countryside, we are still within the city limits.”

Over the years, what Wilson has disliked is seeing his property taxes increase. He dislikes even more the proposal put forth by Indiana legislators in the House to address this issue.

"I've reviewed the bill. I've gone over it thoroughly. It seems like they plan to eliminate the 1975 tax exemptions and remove those benefits from us," Wilson stated.

When Wilson says "us," he refers to disabled Indiana veterans who are homeowners.

Wilson is completely disabled, suffering from hearing loss and various other conditions following his service in the U.S. Navy during the Vietnam War.

"I use hearing aids, but I also lip-read. Without these devices, I wouldn't be able to hear at all," Wilson explained.

Over the last five decades, disabled Indiana veterans such as Wilson have been entitled to nearly a $25,000 reduction in the assessed value of their homes.

It is part of the present-day Indiana code enacted by the state's legislators in 1975.

A further aspect of the present code offers an extra tax break for residences owned by veterans who are completely disabled or those aged 62 and above.

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The deduction amounts to $14,000 for homes owned by disabled veterans that are valued at $240,000 or below. Back in 1975, this threshold was significantly lower, requiring the property to be valued under $143,000. At that point in time, the average price of a home in Indiana stood around $40,000.

The House’s version of SB 1 would remove these two deductions starting in 2027.

"If our aim as a state is to supportdisabled veterans, then in 1975, the General Assembly performed significantly better," stated retired Brig. Gen. James Bauerle from the Military Veterans Coalition of Indiana.

Bauerele is also a disabled Indiana veteran who mentioned that his phone has been constantly ringing with calls fromdisabled veterans about SB 1.

"I received a phone call at 8 PM yesterday evening asking what was happening, and they preceded that with an expletive," Bauerle stated.

In the initial draft of Senate Bill 1 from the House, the newly proposed tax credits can be stacked. This means that a disabled Indiana veteran who is also a senior citizen might qualify for as much as $600 in credits toward reducing their tax liability.

State Representative Chris Judy (R-District 83), who is adisabled veteran himself, stated that the amendments approved on Wednesday, April 9 will increase that amount.

Judy mentioned his intention to connect with veteran organizations through Zoom to listen to their issues.

"I believe that meeting with them once more and engaging in this conversation, thoroughly explaining what this entails and what it doesn't entail, would be beneficial," Judy stated.

RELATED: Legislators disagree on property tax relief legislation as it advances from the House committee

Judy mentioned that it might be possible to modify certain tax credit amounts.

"I believe if adjustments to the credit are necessary, then as we progress further, we might be able to modify it slightly," Judy stated.

However, according to Wilson's perspective, he mentioned that when he calculates the current tax breaks available specifically for disabled veterans, they come out as more advantageous.

"Offering us $250? Really? It might buy a dozen eggs at most, if we're fortunate," Wilson remarked.

Lisa Wilken, adisabled Indiana native who served in the U.S. Air Force, provided the following statement to 13News late Wednesday:

There are worries being expressed by Republican members of the House regarding the dissatisfaction among Indianadisabled veterans concerning the planned expiration of the present property tax benefit and the implementation of a newtaxcredit. Let us clarify this situation.

In 1975, the Indiana state legislature acknowledged the contributions of veterans by providing them with a property tax deduction of $24,950. During this period, the average house price in Indiana stood at around $39,000, so disabled veterans were subject to minimal property taxes as a result. The legislative body went further though; they introduced another $14,000 exemption specifically for completely disabled vets, which effectively eliminated their property tax liability entirely.

Currently, in 2025, the Indiana General Assembly has committed to reducing property taxes for all residents of Indiana, referred to as Hoosiers. To achieve this, they have eliminated the property tax deduction previously available to disabled veterans and instead introduced a tax credit. Nonetheless, this newly implemented credit does not match the initial purpose behind the deduction.

According to the suggested proposal, disabled veterans would be granted the same property tax credit available to every homeowner within the state, along with an extra $250 credit. However, doesn’t this deviate from the initial intent behind such benefits? The original property tax deduction aimed explicitly at ensuring that particularly fully disabled veterans faced minimal or zero property taxes in appreciation for their service. This revised credit measure fails to uphold that promise effectively. "