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: Jan 16, 2024
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.
(Revised) 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, 53 school corporations have 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 $34.0 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 Name
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 6,634,202 7,682,700 6,833,200 849,500
0365Bartholomew Con School Corp 9,334,262 10,156,200 9,614,300 541,900
0395Benton Community School Corp 4,314,991 5,144,200 4,444,400 699,800
0630Zionsville Community Schools 11,755,768 13,560,300 12,108,400 1,451,900
0665Lebanon Community School Corp 3,492,529 6,036,500 3,597,300 2,439,200
1315Barr-Reeve Com Schools Inc 1,038,661 1,241,900 1,069,800 172,100
2100Southeast Dubois County School Corp 984,224 1,152,800 1,013,800 139,000
2285Wa-Nee Community School Corp. 1,566,358 1,763,100 1,613,300 149,800
2315Goshen Community Schools 5,664,945 6,431,600 5,834,900 596,700
3030Westfield-Washington Schools 9,684,834 11,880,600 9,975,400 1,905,200
3070Noblesville Schools 20,038,374 23,519,800 20,639,500 2,880,300
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. 16,397,238 18,595,900 16,889,200 1,706,700
4145Clark-Pleasant School Corp. 2,994,294 3,546,800 3,084,100 462,700
4215Edinburgh Community School Corp 862,866 956,900 888,800 68,100
4225Franklin Community School Corp. 5,052,026 5,619,300 5,203,600 415,700
4515Prairie Heights School Corp. 2,300,412 2,645,600 2,369,400 276,200
4525Westview School Corporation 4,959,271 5,674,400 5,108,000 566,400
4580Hanover Community School Corp 4,671,130 5,471,100 4,811,300 659,800
4590River Forest Community Sch Corp 2,665,024 2,862,800 2,745,000 117,800
4615Lake Central School Corporation 10,752,728 11,642,000 11,075,300 566,700
4660Crown Point Community School Corp. 8,162,411 9,013,500 8,407,300 606,200
4680Lake Station Community Schools 1,371,677 1,515,700 1,412,800 102,900
4690Gary Community School Corporation 12,868,115 14,569,600 13,254,200 1,315,400
4700Griffith Public School Corporation 3,062,872 3,502,300 3,154,800 347,500
4710School City of Hammond 15,116,100 16,256,400 15,569,600 686,800
4730School City of Hobart 2,593,402 2,878,800 2,671,200 207,600
5275Anderson Community School Corp. 2,379,818 2,531,700 2,451,200 80,500
5300M S D Decatur Township 7,644,776 8,573,900 7,874,100 699,800
5340M S D Perry Township 21,812,465 24,469,900 22,466,800 2,003,100
5360M S D Warren Township 7,651,197 8,496,000 7,880,700 615,300
5370MSD Washington Township 19,140,019 20,705,700 19,714,200 991,500
5375M S D Wayne Township 15,439,653 16,542,700 15,902,800 639,900
5380Beech Grove City Schools 3,554,948 3,991,800 3,661,600 330,200
5385Indianapolis Public Schools 41,766,218 45,044,800 43,019,200 2,025,600
5455Culver Community School Corp. 1,834,674 2,079,600 1,889,700 189,900
5480Bremen Public Schools 410,273 438,800 422,600 16,200
5740Monroe County Com Sch Corp 17,893,871 19,209,100 18,430,700 778,400
5910Eminence Community School Corp 862,949 987,800 888,800 99,000
6340Cannelton City Schools 81,715 85,900 84,200 1,700
6460MSD Boone 718,615 787,300 740,200 47,100
6470Duneland School Corporation 8,361,398 9,013,700 8,612,200 401,500
6530Union Township School Corp 1,849,928 2,073,500 1,905,400 168,100
6560Valparaiso Community Schools 6,866,121 7,597,200 7,072,100 525,100
7205South Bend Community Sch Corp 29,527,630 32,002,000 30,413,500 1,588,500
7495Oregon-Davis School Corp. 854,007 987,900 879,600 108,300
HB 1120 3 Appendix A.
Estimated CY 2025 School Operating Referendum Maximum Levy Change
CorpSchool Name
2024
Estimated Max
Levy @
Adjusted
Maximum Rate
2025
Estimated Max
Levy @
Authorized Rate
2025
Estimated
Max Levy
Proposed
2025
Potential
Reduction of
Max Levy
7610Hamilton Community Schools 2,413,362 2,874,100 2,485,800 388,300
8030Vigo County School Corporation 7,736,829 8,154,600 7,968,900 185,700
8355Western Wayne Schools 547,383 582,900 563,800 19,100
8425Southern Wells Com Schools 571,940 660,900 589,100 71,800
8525Frontier School Corporation 1,086,333 1,300,100 1,118,900 181,200
8625Smith-Green Community School Corp. 2,864,383 3,199,300 2,950,300 249,000
Total 375,728,710 421,018,700387,000,400 34,018,300
HB 1120 4