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 6479 NOTE PREPARED: Dec 16, 2023
BILL NUMBER: HB 1149 BILL AMENDED:
SUBJECT: Assessed Value Deduction for Disabled Veterans.
FIRST AUTHOR: Rep. Cherry BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill increases the assessed value (AV) cap, from $200,000 to $240,000, that
applies to the property tax deduction for a veteran who: (1) has a total disability; or (2) is at least 62 years
of age and has at least a 10% disability.
This bill also provides that for purposes of determining the assessed value of the real property, mobile home,
or manufactured home for an individual who has received a deduction in a previous year, increases in
assessed value that occur after December 31, 2024, are not considered for purposes of determining whether
an individual is eligible to receive the deduction.
Effective Date: July 1, 2024.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Beginning with taxes due in 2026, this bill 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.
HB 1149 1 Additionally, under current law, AV increases that push the home’s AV above the AV cap but are not
attributable to physical improvements to the property do not disqualify the veteran from continuing to receive
the deduction. This bill will permit a veteran to keep the deduction regardless of the reason that the AV
grows. This provision will increase the amount of deductions in the case where an improvement is made to
a property and the resulting AV exceeds the limit.
State Agencies Affected:
Local Agencies Affected: County auditors; Local civil taxing units and school corporations.
Information Sources: LSA property tax database.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1149 2