Beech Grove analyzing impact of state law on property tax revenue

The Indiana General Assembly recently passed Senate Enrolled Act 1, which was signed into law by Governor Mike Braun on Tax Day, April 15, to address local government finance and rising property taxes. The law eliminates several property tax deductions in favor of a credit with a $300 cap and allows municipalities like Beech Grove to institute a local income tax of up to 1.2% for the first time. Beech Grove Mayor James Coffman recently announced in his monthly newsletter that the city was looking into how the law would impact property taxes in Beech Grove (Photo Credit: Next Stop Beech Grove).

“The Indiana General Assembly approved a new budget a few weeks ago,” wrote Coffman. “The two-year budget is expected to impact local government operations because there will be less revenue coming in because of changes to property tax collection. Our team is actively working with our partners to understand how the budget will affect Beech Grove, particularly since we are an excluded city. Like other mayors, I understand the need for property tax relief, but cities will face tough choices when it comes to public safety, infrastructure and quality of life services. I’m spending a lot of time working through this, and will continue to keep you updated.”

[RELATED: Gore releases survey results for Beech Grove, Indianapolis]

Projected Property taxes in Beech Grove

Marion County is expected to see $43,182,000 less in additional property tax revenue under the new law than they would have had previous law remained in place in 2026, although that reduction in additional revenue turns to an increase by 2028.

Beech Grove brought in an estimated $6,202,929 in property tax revenue in 2025, and are still expected to see an increase in property tax revenue in 2026. Their estimated net property tax levy for 2026 is $6,215,301, although under previous law they would have seen a much bigger increase in revenue, with an estimated net levy of $6,648,431.

Beech Grove City School Corporation received an estimated $12,161,051 in property tax revenue in 2025, and are still expected to see a slight increase in revenue, with an estimated net property tax levy of $12,269,717 in 2026. This is less of an increase than they would have seen under previous law, which projected an estimated net levy of $12,744,817 in 2026.

Several other cities have taken steps to address this estimated revenue shortfall. Jeffersonville, for example, recently announced budget cuts to prepare for the change.