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 6559 NOTE PREPARED: Dec 31, 2023
BILL NUMBER: HB 1120 BILL AMENDED:
SUBJECT: Property Taxes.
FIRST AUTHOR: Rep. Thompson BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: Veteran’s Deduction: This bill increases the assessed value (AV) limit for the
disabled veteran property tax deduction from $200,000 to $240,000.
Referendum Tax: The bill extends the current cap on operating referendum tax that may be levied by a school
corporation to taxes first due and payable in 2025 at not more than 3% over the maximum operating
referendum tax that the school corporation could have levied in the previous year using the maximum
referendum rate for that year.
Redevelopment Commissions: This bill adds a provision to allow a redevelopment commission to expend
revenues from its allocation fund that are allocated for police and fire services on both capital expenditures
and operating expenses as authorized in the 2023 session in House Bill 1454.
Township Firefighting/EMS: The bill provides that, if a township transitions from a single township
firefighting and emergency services fund to two separate funds as authorized under current law, the township
legislative body must approve a transfer of the remaining cash balance from the single fund to the two new
separate funds and determine the amounts attributable to each fund.
Effective Date: Upon passage; January 1, 2023 (retroactive); January 1, 2024 (retroactive); July 1, 2024.
Explanation of State Expenditures: Department of Local Government Finance (DLGF): This bill will add
additional workload for the DLGF in CY 2024 when certifying school operating referendum tax rates and
levies. The agency's current level of resources should be sufficient to implement this provision.
HB 1120 1 Explanation of State Revenues:
Explanation of Local Expenditures: Redevelopment Commissions: Under current law, redevelopment
commissions are permitted to expend revenues from a TIF district that are allocated for police and fire
services on both capital expenditures and operating expenses. This provision specifies that the expenditures
may be made from the allocation fund.
Explanation of Local Revenues: Veteran’s Deduction: Beginning with taxes payable in CY 2025, this
provision will result in an increase in the number of disabled veterans who may qualify for the deduction.
Based on current claim rates and homestead values, an estimated additional 5,800 veterans could claim about
$81 M in AV deductions worth about $1.7 M in taxes. The new deductions will cause tax rates to rise,
resulting in tax shifts to other taxpayers to the extent that tax bills do not exceed the tax caps. Some of the
tax shift will result in revenue losses to taxing units through higher tax cap credits.
Referendum Tax: The bill will limit the growth in school operating referendum levies in CY 2025. The 2025
maximum levy for an operating referendum fund will be capped at 103% of the maximum levy that would
have resulted in 2024 if a school corporation would have imposed the maximum tax rate (as adjusted under
the current law growth limit for 2024). This limit applies to only referenda that were passed before 2023.
In 2024, 61 school corporations have a total of 62 school operating referendum levies that were passed prior
to 2023. Based on AV growth estimates, it is estimated under this proposal that these school corporations
will have CY 2025 maximum operating referendum levies that total $86.7 M less than under current law. [A
list of school corporations with operating referendum funds passed prior to 2023 is shown as Appendix A.]
If the reduced operating referendum maximum levy leads to reduced levies, then school revenues will be
reduced as compared to current law. Since referendum funds are not subject to tax caps, this provision will
have no tax cap impact.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: County auditors; Civil taxing units and school corporations; Redevelopment
districts.
Information Sources: LSA Property Tax Database; Local Government Database, Department of Local
Government Finance.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1120 2 Appendix A.
Estimated CY 2025 School Operating Referendum Maximum Levy Change
CorpSchool Corporation
2024 Estimated
Max Levy @
Adjusted
Maximum Rate
2025 Estimated
Max Levy @
Authorized Rate
2025
Estimated
Max Levy
Proposed
2025 Potential
Reduction of
Max Levy
0125MSD of SW Allen County 6,511,775 7,682,700 6,707,100 975,600
0365Bartholomew Con School Corp 8,361,732 10,156,200 8,612,600 1,543,600
0395Benton Community School Corp 4,314,812 5,146,400 4,444,300 702,100
0630Zionsville Community Schools 10,636,619 13,560,300 10,955,700 2,604,600
0665Lebanon Community School Corp 3,492,529 6,036,500 3,597,300 2,439,200
1150Clinton Central School Corp 630,550 789,400 649,500 139,900
1315Barr-Reeve Com Schools Inc 1,038,661 1,241,900 1,069,800 172,100
2040Northeast Dubois County Sch Corp 724,598 858,600 746,300 112,300
2100Southeast Dubois County School Corp 984,224 1,152,800 1,013,800 139,000
2285Wa-Nee Community School Corp. 1,469,584 1,766,200 1,513,700 252,500
2315Goshen Community Schools 4,747,759 6,431,600 4,890,200 1,541,400
3030Westfield-Washington Schools 8,724,700 11,880,600 8,986,400 2,894,200
3055Sheridan Community Schools 1,261,240 1,602,500 1,299,100 303,400
3060Carmel Clay Schools 19,725,207 28,300,600 20,317,000 7,983,600
3070Noblesville Schools 17,540,761 23,519,800 18,067,000 5,452,800
3135Mt Vernon Community Sch Corp 3,037,373 4,741,400 3,128,500 1,612,900
3160Lanesville Community School Corp 482,118 565,300 496,600 68,700
3315Avon Community School Corp. 14,346,898 18,595,900 14,777,300 3,818,600
4145Clark-Pleasant School Corp. 2,428,196 3,535,800 2,501,000 1,034,800
4215Edinburgh Community School Corp 862,866 924,500 888,800 35,700
4225Franklin Community School Corp. 4,609,790 5,571,700 4,748,100 823,600
4515Prairie Heights School Corp. 2,266,275 2,637,000 2,334,300 302,700
4525Westview School Corporation 4,694,329 5,674,400 4,835,200 839,200
4580Hanover Community School Corp 4,483,257 5,471,100 4,617,800 853,300
4590River Forest Community Sch Corp 2,665,024 2,862,800 2,745,000 117,800
4615Lake Central School Corporation 9,692,994 11,642,000 9,983,800 1,658,200
4660Crown Point Community School Corp. 7,774,884 9,013,500 8,008,100 1,005,400
4680Lake Station Community Schools 1,302,023 1,515,700 1,341,100 174,600
4690Gary Community School Corporation 10,752,650 14,569,600 11,075,200 3,494,400
4700Griffith Public School Corporation 3,062,872 3,502,300 3,154,800 347,500
4710School City of Hammond 13,896,588 16,256,400 14,313,500 1,942,900
4730School City of Hobart 2,492,281 2,878,800 2,567,000 311,800
4740School Town of Munster 8,510,998 10,715,000 8,766,300 1,948,700
5275Anderson Community School Corp. 2,175,370 2,531,700 2,240,600 291,100
5300M S D Decatur Township 6,790,457 8,573,900 6,994,200 1,579,700
5340M S D Perry Township 21,808,058 24,469,900 22,462,300 2,007,600
5360M S D Warren Township 7,651,197 8,496,000 7,880,700 615,300
5370MSD Washington Township (#1) 8,421,608 9,110,500 8,674,300 436,200
5370MSD Washington Township (#2) 19,140,019 20,705,700 19,714,200 991,500
5375M S D Wayne Township 14,300,192 16,542,700 14,729,200 1,813,500
5380Beech Grove City Schools 3,366,398 3,991,800 3,467,400 524,400
5385Indianapolis Public Schools 31,637,615 45,044,800 32,586,700 12,458,100
5455Culver Community School Corp. 1,764,339 2,167,900 1,817,300 350,600
5480Bremen Public Schools 389,097 438,800 400,800 38,000
5740Monroe County Com Sch Corp 16,261,996 19,209,100 16,749,900 2,459,200
5910Eminence Community School Corp 862,949 987,800 888,800 99,000
6340Cannelton City Schools 81,715 85,900 84,200 1,700
HB 1120 3 Appendix A.
Estimated CY 2025 School Operating Referendum Maximum Levy Change
CorpSchool Corporation
2024 Estimated
Max Levy @
Adjusted
Maximum Rate
2025 Estimated
Max Levy @
Authorized Rate
2025
Estimated
Max Levy
Proposed
2025 Potential
Reduction of
Max Levy
6460MSD Boone 711,464 787,300 732,800 54,500
6470Duneland School Corporation 7,695,097 9,013,700 7,925,900 1,087,800
6530Union Township School Corp 1,849,928 2,073,500 1,905,400 168,100
6560Valparaiso Community Schools 5,402,078 5,821,800 5,564,100 257,700
7200School City of Mishawaka 2,567,730 2,841,500 2,644,800 196,700
7205South Bend Community Sch Corp 24,353,231 32,002,000 25,083,800 6,918,200
7495Oregon-Davis School Corp. 854,007 987,900 879,600 108,300
7610Hamilton Community Schools 2,383,618 2,989,600 2,455,100 534,500
7875West Lafayette Com School Corp 4,451,968 8,551,700 4,585,500 3,966,200
8030Vigo County School Corporation 7,242,754 8,154,600 7,460,000 694,600
8355Western Wayne Schools 474,639 582,900 488,900 94,000
8425Southern Wells Com Schools 571,940 660,900 589,100 71,800
8525Frontier School Corporation 1,082,852 1,300,100 1,115,300 184,800
8535Tri-County School Corp 2,142,543 2,988,500 2,206,800 781,700
8625Smith-Green Community School Corp. 2,862,325 3,239,600 2,948,200 291,400
Total 386,823,351 485,151,400398,428,100 86,723,300
HB 1120 4