LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7041 NOTE PREPARED: Dec 31, 2021
BILL NUMBER: HB 1225 BILL AMENDED:
SUBJECT: Eligibility for Senior Property Tax Deduction.
FIRST AUTHOR: Rep. Slager BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill increases the maximum assessed value of the real property from
$200,000 to $300,000 to be eligible for the senior property tax deduction. It also provides that the assessor
shall provide a report to the county auditor describing any physical improvements to the property.
Effective Date: July 1, 2022.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: The bill requires that in the event a property that was receiving the
over 65 property tax deduction increases in AV, the assessor must send the auditor a report on the physical
improvements made to the property (if any) before the increase in AV occurred. This workload increase
would likely be completed with existing resources.
Explanation of Local Revenues: The bill increases the AV eligibility for the over 65 property tax deduction
from $200,000 to $300,000. The expansion of the eligibility for the over 65 property tax deduction will result
in an estimated $8.8 M to $10.6 M in combined property tax shifts to other taxpayers and revenue losses to
local units. While the bill impacts property taxes beginning in 2024, it could take a couple years to reach the
full impact as taxpayers who are currently ineligible become aware they are eligible for the deduction. The
bill’s provisions also represent a workload increase for assessors.
The over 65 deduction reduces the net AV by $14,000 for qualified recipients. The bill is expected to
HB 1225 1 increase the number of recipients of the over 65 deduction by an estimated 25,300 to 30,600 annually,
resulting in $354 M to $428 M in new deductions.
State Agencies Affected:
Local Agencies Affected: Local civil taxing units and school corporations; county auditors; county
assessors.
Information Sources: LSA property tax database.
Fiscal Analyst: Austin Spears, 317-234-9454.
HB 1225 2