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 6723 NOTE PREPARED: Dec 28, 2023
BILL NUMBER: HB 1234 BILL AMENDED:
SUBJECT: Property Tax Limits on Agricultural Real Property.
FIRST AUTHOR: Rep. Prescott BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill applies the 2% limitation on property taxes applicable to agricultural
land to all agricultural real property, including buildings.
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 CY 2025, this bill moves all agricultural
real property that is not already capped at 2% from the 3% to the 2% property tax cap. While tax rates are
not affected, some tax shifting occurs in counties where LIT-funded property tax credits are allocated to
property capped at 2%.
Tax bills and local revenues will be reduced by an estimated $3.2 M in CY 2025 and $2.8 M in CY 2026.
The estimated effect on net taxes by taxpayer class is summarized in the following table for CY 2025 and
CY 2026.
HB 1234 1 Estimated Net Tax Change ($ M)
Property Type CY 2025CY 2026
Homesteads 0.0 0.0
Farmland 0.1 0.1
Other Residential 0.2 0.2
Apartments 0.0 0.0
Ag Business -3.5 -3.1
Other Real 0.0 0.0
Personal Property 0.0 0.0
Total -3.2 -2.8
The following table summarizes the estimated net revenue change by taxing unit type. [Total estimated local
revenue changes by county appear in Appendix A.]
Estimated Change in Revenue ($ M)
Unit Type CY 2025CY 2026
Counties -0.6 -0.6
Townships -0.3 -0.3
Cities and Towns -0.4 -0.3
School Corporations -1.2 -1.0
Libraries -0.1 -0.1
Special Units -0.3 -0.2
TIF -0.4 -0.3
Total -3.2 -2.8
Total Without TIF -2.8 -2.5
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 1234 2 Appendix A
Estimated Change in Revenue
CntyCounty CY 2025 CY 2026 CntyCounty CY 2025CY 2026
01Adams -52,000 -51,00047Lawrence -26,000 -22,000
02Allen -11,000 -9,00048Madison -176,000-149,000
03Bartholomew -2,000 -2,00049Marion -968,000-901,000
04Benton -1,000 -1,00050Marshall -1,000 -1,000
05Blackford -9,000 -3,00051Martin 0 0
06Boone -24,000 -18,00052Miami -48,000 -46,000
07Brown 0 053Monroe 0 0
08Carroll -3,000 -2,00054Montgomery -13,000 -12,000
09Cass -10,000 -7,00055Morgan 0 0
10Clark -47,000 -40,00056Newton -5,000 -4,000
11Clay -1,000 -1,00057Noble -2,000 -2,000
12Clinton -41,000 -42,00058Ohio 0 0
13Crawford -73,000 -63,00059Orange 0 0
14Daviess -2,000 -2,00060Owen -1,000 -1,000
15Dearborn -15,000 -2,00061Parke -1,000 -1,000
16Decatur 0 062Perry -6,000 -6,000
17DeKalb -14,000 -13,00063Pike -166,000-156,000
18Delaware -21,000 -17,00064Porter -39,000 -34,000
19Dubois -3,000 -3,00065Posey -1,000 -1,000
20Elkhart -78,000 -77,00066Pulaski 0 0
21Fayette -1,000 -1,00067Putnam -1,000 -1,000
22Floyd -1,000 -1,00068Randolph -8,000 -8,000
23Fountain 0 069Ripley -2,000 -1,000
24Franklin 0 070Rush 0 0
25Fulton -1,000 -1,00071St. Joseph -27,000 -17,000
26Gibson -31,000 -28,00072Scott -2,000 -2,000
27Grant -82,000 -73,00073Shelby -4,000 -4,000
28Greene -66,000 -57,00074Spencer -1,000 -1,000
29Hamilton -3,000 -1,00075Starke -2,000 -2,000
30Hancock -90,000 -52,00076Steuben 0 0
31Harrison -1,000 -1,00077Sullivan -1,000 -1,000
32Hendricks -75,000 -42,00078Switzerland 0 0
33Henry -93,000 -80,00079Tippecanoe -2,000 -2,000
34Howard -32,000 -21,00080Tipton -2,000 -2,000
35Huntington -2,000 -2,00081Union 0 0
36Jackson -93,000 -90,00082Vanderburgh -71,000 -72,000
37Jasper 0 083Vermillion -26,000 -22,000
38Jay -36,000 -19,00084Vigo -153,000-153,000
39Jefferson -14,000 -13,00085Wabash -30,000 -31,000
40Jennings -1,000 -1,00086Warren 0 0
41Johnson -14,000 -5,00087Warrick -27,000 -29,000
42Knox 0 088Washington -5,000 -5,000
43Kosciusko -2,000 -2,00089Wayne -225,000-215,000
44LaGrange -6,000 -6,00090Wells -1,000 -1,000
45Lake -23,000 -18,00091White 0 0
46LaPorte -82,000 -78,00092Whitley 0 0
Total -3,201,000-2,849,000
HB 1234 3