Gov. Mike Braun has signed the contentious Senate Bill 1 into law . This legislation was neither as good, nor as bad, as anyone claims. That is how legislative compromise works. But there are some hidden, and probably unanticipated, economic consequences.
SB 1 cut residential property taxes. About two-thirds of Hoosier families will see cuts of under $100 per year, and about half of those will see no property tax cuts. The wealthiest third of households will see cuts of $250-$300 per year.
These residential tax cuts are very modest, but the business tax cuts are large.
Businesses get biggest tax breaks
The legislation raises the minimum threshold for filing business property taxes from $80,000 to $2 million, phased in over a couple of years. This will exempt the vast majority of Hoosier businesses from any property tax…