25-44 Resolution Calling for Relief from the Devastating Impact of Senate Enrolled Act 1 on the City of South Bend and Other Local Governmental Entities Within the State of Indiana

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Filed in Clerk's Office Oct 22, 2025 BILL NO. 25-44 Bianca Tirado City Clerk, South Bend, EN RESOLUTION NO. A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA, CALLING FOR RELIEF FROM THE DEVASTATING IMPACT OF SENATE ENROLLED ACT 1 ON THE CITY OF SOUTH BEND AND OTHER LOCAL GOVERNMENTAL ENTITIES WITHIN THE STATE OF INDIANA WHEREAS, the Indiana legislature passed legislation in 2025, most notably Senate Enrolled Act 1 (SEA 1), which facially reduces residential property tax bills for homeowners and changes how tax liabilities are calculated; and WHEREAS, homeowners deserve affordable property tax bills as well as adequate public safety and services; and WHEREAS, the legislation does not provide replacement state funding for adequate public safety and city services which will soon be showing devasting negative impacts; and WHEREAS, the legislation will also stifle economic development opportunities in South Bend, negatively impacting continued future growth; and WHEREAS,the economic impact on municipal taxing units has been estimated to exceed $2 Billion; and WHEREAS, the legislation provides an option for additional local income taxes of a maximum of 1.2% for municipal services, plus a maximum of 1.2% for county services, plus an additional income tax up to 0.05% for a possible local income tax rate of 2.9%; and WHEREAS,the ability to adopt a local income tax option provided in the legislation could be a helpful tool for municipal units who are given such authority, it is not adequate to replace the magnitude of the funding being eliminated,thereby making the local income tax option a necessity, rather than a true option; and WHEREAS the local income tax option amounts to a mandated local income tax increase on both homeowners and those who do not own their own homes; and WHEREAS, the negative impact of the legislation is currently being seen through the slashed budget proposals submitted for Common Council approval; and WHEREAS, the legislation will likely impact public safety through the effects on contracts recently negotiated between the City and South Bend police officers and firefighters;and