Credit rating agencies flag property tax bill for creating “uncertainty” for local bonds

Experts warn that Indiana’s cities, towns and counties could take a hit to their credit rating through no fault of their own, but rather due to continued fallout from the state’s effort to curb property tax growth.

S&P Global Ratings, which provides independent credit ratings and research, warned that the new law enacted earlier this year “creates uncertainty” for local income tax-backed debt, according to a recent story in industry publication The Bond Buyer .

“At this point, we believe it’s too soon to assess how these changes will influence our ratings,” S&P Associate Director John Sauter told The Bond Buyer.

But a report co-authored by Sauter flags concerns with new provisions of the wide-ranging bill , which limited local tax growth and has left some municipalities scrambling t