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 6762 NOTE PREPARED: Dec 29, 2023
BILL NUMBER: HB 1152 BILL AMENDED:
SUBJECT: Assessed Value Deductions for Disabled Veterans.
FIRST AUTHOR: Rep. Lauer BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill eliminates the assessed value (AV) cap 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.
Effective Date: July 1, 2024.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Beginning with taxes payable 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 20,000 veterans could claim about $280 M in AV deductions
worth about $6.1 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. (Currently, the AV cap is $200,000.)
State Agencies Affected:
Local Agencies Affected: County auditors; Local civil taxing units and school corporations.
HB 1152 1 Information Sources: LSA property tax database.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1152 2