Prescott to reintroduce property tax repeal and replacement proposal, host public events across Indiana

STATEHOUSE (June 12, 2026) – State Rep. J.D. Prescott (R-Union City) announced plans to reintroduce legislation during the 2027 legislative session that would repeal Indiana's property tax system and replace it with a sales tax on services, while launching a series of public meetings this year to gather feedback and build support for the proposal.

Prescott said the current property tax system is unpredictable for homeowners, businesses and farmers and often shifts the tax burden between different groups of taxpayers.

"Hoosiers work hard to pay off their homes and build a future for their families, yet they continue paying taxes on that property year after year," Prescott said. "This proposal offers a different approach by replacing property taxes with a consumption-based system that is more transparent, more predictable and fairer for taxpayers."

Under Prescott's proposal, property tax assessments would end after 2027, with 2028 serving as the final year property taxes would be payable. The legislation would also prohibit new debt tied to property taxes and prevent the creation of new tax increment financing districts following passage of the bill, allowing for a two-year transition to a new funding model.

To replace revenue currently generated through property taxes, the proposal would expand Indiana's 7% sales tax to include most services while maintaining existing exemptions for healthcare, education and categories already exempt from sales tax. According to estimates from the Indiana Legislative Services Agency, the expanded tax base could generate between $13 billion and $15 billion annually.

Revenue generated under the proposal would continue supporting schools and local governments. Approximately 45% would be directed to schools, with additional funding distributed to counties, municipalities, townships, libraries and fire districts through a formula based on factors including population and roadway miles.

Prescott said the proposal would eliminate all property tax bills, broaden the tax base, provide consistent funding for local governments and reduce administrative costs associated with property assessments.

As part of the effort, Prescott is hosting a series of public presentations and community discussions throughout the interim to explain the proposal, answer questions and collect feedback from residents, local officials and stakeholder groups.

Upcoming listening sessions include:

• June 23 at 5:30 p.m. – Indianapolis Public Library, Glendale Branch, 3660 E. 62nd St., Indianapolis
• July 1 at 6:30 p.m. – Friends of America monthly meeting, Elks Golf Club, Muncie
• July 8 at 10 a.m. – UPSTAR Realtor Association office, Fort Wayne (Realtor-focused meeting)
• July 13 at 5:30 p.m. – Indianapolis Public Library, Pike Branch, 6526 Zionsville Road, Indianapolis
• July 29 at 6 p.m. – Vigo County Public Library, 680 Poplar St., Terre Haute

Prescott said additional stops will be announced. Residents interested in learning more about the proposal, attending an upcoming event or providing feedback can contact Prescott's office at 317-232-9751 or visit in.gov/h33.

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State Rep. J.D. Prescott (R-Union City) represents House District 33,
which includes all of Blackford and Randolph counties,
and portions of Delaware, Henry and Jay counties.
Click here to download a high-resolution photo.

PHOTO CAPTION: State Rep. J.D. Prescott (R-Union City) speaks to a crowd during a public discussion on his property tax repeal and replacement proposal at the Jackson Live & Event Center in Seymour, Indiana on Monday, June 9, 2026. Prescott outlined his plan to eliminate property taxes and replace them with a consumption-based tax system while gathering feedback from Hoosiers across Indiana.