SOUTH BEND — Property tax caps imposed by the state have cost the city of South Bend tens of millions of dollars over the past six years, forcing the city to tighten its belt and cut its workforce. But the caps have also pushed the city to stay on strong financial footing, thanks to robust reserves and relatively low debt, a new report shows.
Conducted on behalf of the nonpartisan Indiana Fiscal Policy Institute, the 51-page study examines the impact of the tax caps on 18 “larger” Indiana cities, excluding Indianapolis.
In South Bend, the study found, taxpayers are saving and city government has reined in its spending. This year alone, the caps have cost South Bend more than $30 million in property tax revenue.
Among other findings:
• South Bend lost more money to the tax caps than any of the other cities in the study, largely because it had the highest property tax rate among all the cities.
• South Bend had the second-highest income tax rate of any of the cities in the study.
• South Bend captured more assessed value for redevelopment than any of the other cities in the study.
• South Bend maintained better reserves than any of the other cities in the study.
Copyright © 2025, South Bend Tribune