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 6246 NOTE PREPARED: Nov 28, 2023
BILL NUMBER: HB 1029 BILL AMENDED:
SUBJECT: Assessment of Community Land Trust Property.
FIRST AUTHOR: Rep. Bauer M BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides for the true tax value of land and improvements in a community
land trust for purposes of property tax assessment.
Effective Date: July 1, 2024.
Explanation of State Expenditures: Department of Local Government Finance (DLGF): This bill’s
provisions may require the DLGF to issue further updated guidance to local assessing officials regarding how
the classification of properties owned by a community land trust should be categorized within the local
assessment software systems and how these properties are to be assessed in terms of the application of annual
adjustment factors to the improvements. The provisions are within the agency’s routine administrative
functions and should be able to be implemented with no additional appropriations, assuming near customary
agency staffing and resource levels.
Explanation of State Revenues:
Explanation of Local Expenditures: Local Assessing Officials: The bill requires the true tax value of land
owned by a community land trust to be valued at the present value of the long term revenue that will be
received from fees required under the ground lease. For the true tax value of the improvement owned by a
community land trust in the first assessment year after the ground lease has been entered into, the value is
either (1) the initial appraised value or (2) a formula price based on a market based index that uses a median
income index for income in the county in which the community land trust improvement is located as noted
in the ground lease. For the purposes of reassessment and trending after the initial assessment, the true tax
value of the improvement may not exceed the maximum amount for which the property may be transferred
HB 1029 1 or sold as referenced in the affordability restrictions in the ground lease.
This bill’s provisions will result in an increase in the local assessing officials’ workload since the officials
will need to perform further due diligence and collect additional information (e.g., certain data points from
the ground lease agreements) on properties categorized under a community land trust to verify that the
calculated assessments for both the land and improvements are adhering to the conditions in the ground lease
agreement.
Explanation of Local Revenues: The actual impact on property tax revenue as a result of this bill’s
provisions is not readily determinable. Factors like how many properties are categorized under a community
land trust and what a particular property within the community land trust might have been assessed at had
the affordability restrictions not been in effect will help determine the actual impact of property tax revenues
for a county where a community land trust is located.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: Local Assessing Officials.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
HB 1029 2