What is Replace Don’t Erase?

Replace Don’t Erase is an ongoing effort to preserve adequate funding for Indiana’s cities, towns, counties, schools, townships, and libraries to ensure they can continue providing Hoosiers with the quality of life they expect and deserve.

During the 2025 Legislative Session, the Indiana General Assembly is considering multiple proposals that aim to cut residential property taxes, personal property taxes for homeowners and businesses, and drastically alter the calculation of tax liabilities. While growing Indiana’s economy involves more than just reducing business taxes, these proposals pose significant risks to local governments’ ability to fund essential services.

The bills, including SB 1, propose significant cuts to property taxes by imposing new tax caps, increasing existing deductions, reforming the MLGQ, and eliminating personal property assessed value from the tax base. Aim opposes any reduction in local revenues without a significant and state-backed revenue replacement mechanism. These are among the largest proposed cuts we have seen since the institution of the property tax caps with the fiscal impact of some of the bills nearing $2 Billion.

Statement from Matt Greller, February 11, 2025

“Today, the Senate Tax and Fiscal Policy Committee amended SB 1 significantly and the bill appears to have improved over what was introduced. We look forward to additional conversations regarding a possible replacement source for what will still constitute meaningful funding shortfalls.

We are grateful that Chairman Holdman and his committee have made changes to the bill that are responsive to local concerns. City and town leaders look forward to continuing a respectful, productive dialogue with lawmakers and Governor Braun’s and his legislative team in the days and weeks ahead. It does not serve Hoosier taxpayers well to overhaul the current system in a manner that does more harm than good. An unbalanced approach represents the worst possible outcome for taxpayers and the governmental units they rely on for safe, livable, affordable, and well-maintained and well-appointed communities.”

Campbell Ricci
Policy and Financial
Resources Director
cricci@aimindiana.org
317-237-6200 x 248