In 2008, the Indiana legislature passed and the governor signed into law House Enrolled Act No. 1001, now referred to as Public Law 146-2008, which capped Indiana school districts' ability to raise revenues from the local property tax without local voter approval. To phase in the impact of the law, the state provided school districts with levy replacement grants in 2009 and 2010 that offset losses of greater than 2% of their property tax revenues. In 2011, the levy replacement grant program expired, and schools districts experienced the full impact of the law. As a result, property taxes for homesteads were capped at 1%, agricultural land at 2%, and nonresidential real property at 3% of total assessed value (Indiana Department of Local Government Finance 2008). For school boards hesitant to seek voter approval of higher taxes, these caps represented a potential loss in funding. To that end, the exploratory study described in this article analyzed the law's impact on the school districts by demographic type and sought to establish the predictive value of select independent variables on school district funding losses attributable to property tax caps. The article is divided into four sections. Following this introduction is a section on the background of this property tax reform in Indiana and a comparison to other states. The next section provides a description of the methodology used in the study while the third section discusses findings. In the final section, conclusions and recommendations for future research are presented.