ARTICLE
Public education suffered record circuit breaker losses last year. Property tax caps deprived Indiana's public schools of $365 million in revenue in 2023, according to the annual Circuit Breaker Report released by the Legislative Services Agency on December 31. This was the fifth year in a row that tax cap losses reached a new record high. Since they took effect in 2009, the tax caps have reduced the certified levies of Indiana school corporations by more than $3.5 billion ($3,516,742,676). Circuit breaker losses increased by less than one percent over 2022 but are up by 86% since 2012. Nineteen school corporations saw their 2023 Operations Fund levy slashed by more than half as a result of the circuit breaker tax credits. The circuit breaker limits the size of tax bills. Homeowners are limited to tax bills equal to 1% of the gross assessed value of their homes. Farmland and non-homestead residential tax bills are capped at 2% of the gross assessed value, and business property taxes are limited to 3% of the gross assessed value. The caps were voted into the state constitution in 2010. ### Adam VanOsdol ISBA Communications Specialist/Content Strategist avanosdol@isba-ind.org
Public education suffered record circuit breaker losses last year.
Property tax caps deprived Indiana's public schools of $365 million in revenue in 2023, according to the annual Circuit Breaker Report released by the Legislative Services Agency on December 31.
This was the fifth year in a row that tax cap losses reached a new record high.
Since they took effect in 2009, the tax caps have reduced the certified levies of Indiana school corporations by more than $3.5 billion ($3,516,742,676).
Circuit breaker losses increased by less than one percent over 2022 but are up by 86% since 2012.
Nineteen school corporations saw their 2023 Operations Fund levy slashed by more than half as a result of the circuit breaker tax credits.
The circuit breaker limits the size of tax bills. Homeowners are limited to tax bills equal to 1% of the gross assessed value of their homes. Farmland and non-homestead residential tax bills are capped at 2% of the gross assessed value, and business property taxes are limited to 3% of the gross assessed value. The caps were voted into the state constitution in 2010.
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Adam VanOsdol
ISBA Communications Specialist/Content Strategist
avanosdol@isba-ind.org