Indiana just reported a 12 percent jump in statewide property assessments, with commercial and industrial land leading the surge. But while the state celebrates “relief” through Senate Bill 1 (a bill promising short-term homeowner credits) cities like Greenwood are warning that the same legislation could cost them tens of millions in revenue.

Greenwood’s controller Greg Wright told the Daily Journal the city could lose up to $24 million by 2028 because of levy caps and circuit-breaker changes.

“There’s a lot that gets taken care of with those property-tax dollars,” he said, pointing to police, fire, and parks budgets already stretched thin. Mayor Mark Myers called the measure “horrible.”

Retired Purdue economist Larry DeBoer told the Indiana Capital Chronicle that assessments show how “local economies and assessing practices” drive value growth; a reminder that what’s really expanding isn’t the number of houses, but the value of the land underneath them.

That’s the problem. Indiana keeps trying to fix property-tax pressure with levy caps, credits, and farmland discounts, while ignoring the root: land speculation and uneven location value. When farmland is assessed far below market worth and downtown parcels soar, local governments lose balance, and renters, homeowners, and workers foot the bill.

A land value tax (LVT) would correct this. Tax the land, not the labor. Let cities capture the unearned location gains that come from public investment, instead of punishing them for growth. Replace income-tax hikes with a stable base that rewards development and discourages speculation.

SB 1 is a patch meant to hide a structural flaw. If Indiana really wants to stabilize housing, protect cities like Greenwood, and cut taxes on work and enterprise, it should look beneath the buildings and at the land itself.