Indiana Senate Changes Property Tax System

The Indiana Senate approved a two-year budget proposal today and passed a bill that would overhaul the state's property tax system.

The 26-billion dollar budget plan would give more money to universities, prisons and Medicaid and cap overall spending increases.

Under the tax reform bill, the state would assume all school operating costs and basically stop subsidizing local property taxes.

Both bills now head to joint House-Senate committees to hammer out compromises before the legislative session ends.

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