Delay in local income tax changes sets up more legislative debate next year

By: Tom Davies

Outlets: Indiana Capital Chronicle

Published: March 23, 2026

Words: 574

Last Updated: 4 months, 1 week ago

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One of the last bills signed by Gov. Mike Braun from this year’s legislative session sets the stage for more haggling in 2027 over the funding for local governments.

A wide-ranging bill on numerous state and local tax matters approved by legislators last month includes provisions for a one-year delay on planned major changes to local income taxes — and orders up a new report on how cities and counties could share that tax revenue.

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