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 6349 NOTE PREPARED: Dec 6, 2021
BILL NUMBER: HB 1308 BILL AMENDED:
SUBJECT: Additional Property Tax Relief for Homesteads.
FIRST AUTHOR: Rep. Moseley BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill makes changes to the property tax deduction and additional circuit
breaker credit for those over 65 years of age.
Effective Date: July 1, 2022.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Summary - The bill increases the AV eligibility for both the over 65 circuit
breaker credit and the over 65 property tax deduction from $200,000 to $300,000. The expansion of the
eligibility for the over 65 circuit breaker credit will decrease local revenue by an estimated $2.3 M to $2.8
M. 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 or credit.
Credit: The over 65 circuit breaker credit allows the tax bill of qualified homeowners to increase by no more
than 2% over the previous year. The credit amount is:
1. The property tax bill the homeowner would have paid without the credit; minus
2. The homeowner’s bill from the previous year multiplied by 1.02.
HB 1308 1 The bill is expected to increase the number of recipients of the over 65 circuit breaker credit by an estimated
15,200 to 18,500 annually. The credit amount is likely to increase over time as property tax bills increase
more than 2% annually.
Deduction: The over 65 deduction reduces the net AV by $14,000 for qualified recipients. The bill is
expected to 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.
Information Sources: LSA property tax database.
Fiscal Analyst: Austin Spears, 317-234-9454.
HB 1308 2