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 6205 NOTE PREPARED: Nov 21, 2023
BILL NUMBER: HB 1248 BILL AMENDED:
SUBJECT: Tax Deduction and Credit for Persons Age 65 or Older.
FIRST AUTHOR: Rep. Moseley BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill increases the maximum assessed value (AV) of the real property of an
individual at least 65 years of age to be eligible for the over 65 deduction from $240,000 to $340,000 for an
assessment date between December 31, 2024, and January 1, 2026. It increases the maximum AV limitation
for the over 65 deduction by $1,000 per assessment year thereafter.
The bill also increases the maximum AV of the real property of an individual at least 65 years of age to be
eligible for the additional credit for certain homesteads (the over 65 circuit breaker credit) from $240,000
to $340,000 for an assessment date between December 31, 2024, and January 1, 2026. It increases the
maximum AV limitation for the over 65 circuit breaker credit by $1,000 annually per assessment year
thereafter.
(Current law provides that for an individual who has received the over 65 circuit breaker credit in a previous
year, increases in assessed value that occur after the later of December 31, 2019, or the first year that the
individual has received the over 65 circuit breaker credit, are not considered unless the increase in AV is
attributable to substantial renovation or new improvements.)
Effective Date: July 1, 2024.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
HB 1248 1 Explanation of Local Revenues: Beginning with taxes payable in CY 2026, this bill increases the AV limit
from $240,000 to $340,000 for both the property tax deduction and the tax cap credit available for
homeowners that are aged 65 and over. Additionally, the AV cap will be increased by $1,000 per year
beginning with taxes payable in CY 2027.
Both provisions will result in a reduction of local revenues due to an increase in property tax cap losses. The
change in the income limit for the deduction will also cause tax shifts from the new taxpayers receiving the
deduction to all other taxpayers.
The $1,000 annual AV limit increase will result in an increase of 0.1% annually in the number of additional
taxpayers who may qualify for the deduction and credit.
Additional Information: Over 65 Property Tax Deduction: Beginning with taxes due in CY 2026, the change
in the AV limit could result in an estimated 21,000 additional taxpayers qualifying for the deduction if they
also meet current income limits. The additional deductions could amount to an estimated $300 M in AV,
worth about $6.5 M in taxes to the recipients. Some of these taxes will be shifted to other taxpayers through
increased tax rates, and some will be lost to higher tax cap credits.
[For taxes payable in 2022 under current law, 97,800 taxpayers received the 65 and over deduction totaling
$1.33 B in AV.]
Property Tax Credit: Beginning with taxes due in CY 2026, the change in the AV limit could result in an
estimated 15,100 additional taxpayers qualifying for the credit if they also meet current income limits. This
credit limits the growth in net property tax bills to 2% per year. At least initially, the credits will be minimal
but will increase over time.
[For taxes payable in 2023 under current law, 69,200 taxpayers received 65 and over tax cap credits totaling
$31.0 M in tax.]
State Agencies Affected:
Local Agencies Affected: County auditors; Civil taxing units and school corporations.
Information Sources: LSA's property tax database.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1248 2