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 6935 NOTE PREPARED: Jan 3, 2024
BILL NUMBER: HB 1208 BILL AMENDED:
SUBJECT: Assessment of Wind Power Devices.
FIRST AUTHOR: Rep. Negele BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: Wind Power Devices: This bill requires a new owner of a wind power device
(device) to report, when filing the owner's statement of value and description of property with the Department
of Local Government Finance (DLGF) in years after the first year of ownership, the valuation of the device
at the same valuation amount entered in the public utility company's first annual report after the transfer of
ownership, less adjustments for depreciation according to a schedule prescribed by the DLGF.
Study Topic: The bill also urges the Legislative Council to assign to an appropriate interim study committee
the task of studying utility scale wind and solar power taxation.
Effective Date: Upon passage; July 1, 2024.
Explanation of State Expenditures: Department of Local Government Finance: Under this bill, the DLGF
will be required to prescribe a depreciation schedule to be used in valuing wind devices after the first year
in which they are acquired by a new owner. Under current law, the DLGF already must adopt an assessment
method for this property. So, this bill should have no additional effect on the DLGF’s workload.
Study Topic: The Legislative Council could assign the topic to an existing interim study committee or
establish a new interim study committee to study this topic during the next interim. Interim study committees
operate on budgets established by the Legislative Council based on committee size. Legislative Council
resolutions in the past have established budgets for interim study committees in the amount of $13,500 per
interim for committees with fewer than 16 members and $17,500 for committees with 16 members or more.
If the Legislative Council were to assign this topic to an existing committee and the committee were to have
any extra meetings to address this topic, there would be additional expenditures for legislator per diem and
HB 1208 1 travel reimbursement for the committee members. Any additional expenditures must be within the
committee’s budget.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Wind Power Devices: Under current law, the valuation of wind devices
in the first year after they are acquired by a new owner is equal to the valuation in the previous year under
the former owner. After the first year post-acquisition, the devices must be valued in accordance with
established valuation statutes and rules, except that the DLGF may not consider valuations determined by
another governmental agency. The DLGF has not yet determined how this property will be assessed.
(Currently, utility assessments begin with the federally depreciated value.)
This provision specifies that the assessment for years after the first year post-acquisition will be equal to the
value in the first year post-acquisition, adjusted for depreciation according to a depreciation schedule
prescribed by the DLGF.
Because the DLGF has not yet adopted a valuation methodology for this property, it is unknown as to
whether the valuation determined under this bill, using a yet-to-be prescribed depreciation schedule, would
differ from the valuation without this bill.
The final valuation of this property could affect other taxpayers through increased, reduced, or eliminated
tax shifts. Revenues for taxing units serving the subject property could also be affected through tax levy
changes in rate-controlled funds, such as cumulative and school operating referendum funds, and through
any change in tax cap losses that could occur.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: Taxing units in areas with wind power devices.
Information Sources:
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1208 2