West Lafayette Community�School Corporation

Budget Order Update

May 4, 2026

Assumptions & Methodology

Overview of SEA-1 Changes

• Homestead Deductions

Increased from 37% of assessed value in 2025, phased in over time, to 67% of assessed value for taxes due in 2031. Standard deduction is phased out by 2031.

• 2% Cap Tax Class Deductions

New deduction for non-homestead residential (2% circuit breaker class such as apartments, long-term care facilities and agriculture), phasing in each year to 33% by 2031

• Homestead Residential Credit

New credit for homestead residential properties equal to the lesser of 10% of the taxpayer liability or $300. To be applied after Constitutional circuit breaker caps.

• De Minimis Business Personal Property Exemption

Exemption threshold for de minimis business personal property (purchase price $2M or less) increases from $80K in 2025 to $2M for 2027.

• Business Personal Property 30% Floor

With certain exceptions, new business personal property purchases are exempted from the 30% floor and therefore will continue to depreciate below 30% of cost.

• Farmland Assessed Value

New methodology for agriculture base rate beginning in 2026 including the capitalization rate changed from 8% to 9% for January 1, 2025 and January 1, 2026.

• Elimination of Deductions

Most non-local property tax deductions are eliminated for taxes payable in 2026 such as solar energy, wind, geothermal, etc. Other historic deductions such as over-65, blind/disabled were converted to credits.

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Indiana NAV Change: 2025 to 2026

AV Analysis

By School District

Decrease > 2.5%

Decrease 2.5% - 0%

Increase 0% - 5%

Increase 5% - 10%

Increase 10% - 15%

Increase > 15%

Tax Districts and Rates

AV Analysis

Pay 2026

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Tax Rate History

AV Analysis

West Lafayette City – WLSC – B (84.7% of Tax Base)

West Lafayette – WLSC – B – C (14.9% of Tax Base)

Wabash Township – WLCS – B (0.4% of Tax Base)

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2026 NAV per Student

AV Analysis

Schools with Similar ADM

6

2026 NAV per Student

AV Analysis

Schools within Tippecanoe County

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2026 Property Tax Rates

AV Analysis

Schools with Similar ADM

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2026 Property Tax Rates

AV Analysis

Schools within Tippecanoe County

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2026 Certified NAV vs Total Rate

AV Analysis

Statewide

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2026 Certified NAV vs Total Rate

AV Analysis

Schools with Similar ADM

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2026 Certified NAV vs Total Rate

AV Analysis

Schools within Tippecanoe County

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Revenue Scenarios

Modeled Scenarios

Certified NAV Assessed Value Projection

Pay 2016 to 2035, Dollars in Millions

Total Homestead Deductions

Pay 2025 to 2035, Dollars in Millions

Total 2% Cap Tax Class Deductions

Pay 2025 to 2035, Dollars in Millions

Actual NAV Change – 1 Year

Pay 2025 to Pay 2026

1.2%

Actual Average NAV Annual Change – 10 Years

Pay 2016 to Pay 2026

3.3%

Projected Average NAV Annual Change – 5 Years

Pay 2026 to Pay 2031

-4.4%

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NAV Annual Projection

• SEA 1 2025 contains provisions that change the tax base for local governmental units moving forward.
• The deductions contained in SEA 1 phase in over the period between 2026 and 2031 (pay year).
• In 2027, the de minimis business personal property exemption is increased to $2M.
• Once SEA 1 is fully implemented, net assessed values are projected to increase by approximately 3.5% annually.

Modeled Scenarios

15

Operating Referendum Projection

• The max Operating Referendum rate is $0.3700 per $100 assessed value approved by voters in November 2023.
• Because the tax base is expected to decrease due to SEA 1-2025 provisions, the same rate will produce less revenue in the future.
• A renewed operating referendum may be subject to revenue sharing to charter schools.
• 2025 Rate: $0.3700
• 2026 Rate: $0.3700

Modeled Scenarios

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Last Year of Current

Operating Referendum Projection

• The max Operating Referendum rate is $0.3700 per $100 assessed value approved by voters in November 2023.
• Because the tax base is expected to decrease due to SEA 1-2025 provisions, the same rate will produce less revenue in the future.
• 2025 Rate: $0.3700
• 2026 Rate: $0.3700
• Rate needed for same revenue in 2031: $0.5405

Modeled Scenarios

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Last Year of Current

Unfunded Credits

Circuit Breaker Loss:

• 1% Credit – Owner Occupied Residential (Homestead)
• 2% Credit – Other Residential, Agricultural Land
• 3% Credit – Commercial and Industrial Property, Business Personal Property

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Homestead Residential Credit

• New credit for homestead residential properties equal to the lesser of 10% of the taxpayer liability or $300. To be applied after Constitutional circuit breaker caps.

Modeled Scenarios

Dollars in Thousands

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Unfunded Credits: Operations Fund

Circuit Breaker

Unfunded Credits: Debt Service Fund

Unfunded Credits: Referendum Funds

Revenue Comparisons

2026 Projected Net Levy per Student: All Property Tax Funds

Modeled Scenarios

Schools within Tippecanoe County

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Prior to Charter Share

2026 Projected Net Levy per Student : Operations & Operating Referendum Funds

Modeled Scenarios

Schools within Tippecanoe County

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Prior to Charter Share

Let us know how we can help your district!

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POLICY ANALYTICS – SCHOOL SERVICES TEAM

Jane Herndon

School Services Project Manager

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jherndon@policyanalyticsllc.com

317.509.4398

Barry Gardner

Director of School Services

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bgardner@policyanalyticsllc.com

317.997.4090

Jason O’Neill

Managing Director

April Fitterling

Project Director

Matt Parkinson

Project Director

Tracy Boss

Project Coordinator

Isaac Ray

Director of Data Systems

Addie Hanchett

Senior Fiscal Analyst