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 6582 NOTE PREPARED: Dec 21, 2023
BILL NUMBER: SB 157 BILL AMENDED:
SUBJECT: Landlocked Property.
FIRST AUTHOR: Sen. Buck BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill defines "landlocked property" as real property that has been shut off
from all public highways as a result of the vacation of one or more public highways. It provides that if an
action of the state, or an agency or political subdivision of the state, causes real property to become
landlocked property, either: (1) the state must purchase the landlocked property from the owner of the
landlocked property at an amount equal to the assessed value of the landlocked property in a time and manner
prescribed by the Department of Local Government Finance; or (2) the county assessor of the county in
which the landlocked property is located must assess the value of the landlocked property at zero for as long
as the property qualifies as landlocked property.
Effective Date: January 1, 2024 (retroactive).
Explanation of State Expenditures: Department of Local Government Finance (DLGF): The bill’s
provision regarding the state purchasing the landlocked property from the owner of the landlocked property
at an amount equal to the assessed value of the landlocked property in a time and manner prescribed by the
DLGF would require the DLGF to formulate and issue new guidance on how landlocked properties are to
be assessed. This requirement will result in a temporary increase in the administrative workload for the
DLGF but falls within the agency’s routine administrative functions and should be able to be implemented
with no additional appropriations, assuming near customary agency staffing and resource levels.
Landlocked Property Acquisition: The state may experience an increase in overall expenditures to the extent
its actions, as referenced in the bill, require it to purchase landlocked real property parcels. The actual fiscal
impact will vary from transaction to transaction and will depend on the actions of the applicable state agency,
the number of landlocked parcels involved in the acquisition, and the assessed value of the parcels.
SB 157 1 Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Landlocked Property: This bill establishes that the county assessor of the
county in which the landlocked property is located must assess the value of the landlocked property at zero
for as long as the property qualifies as landlocked property. Valuing these properties at $0 will result in a
decrease in the assessed value base for certain taxing units, which will increase tax rates and shift some taxes
to other taxpayers. In addition, the higher tax rates will result in a local revenue reduction due to higher tax
cap losses. The actual reduction in property tax revenue will be contingent on factors like the number of
properties being classified as landlocked and the amount of assessed value associated with each property had
the property kept its original (i.e., pre-landlocked) classification.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: County assessors.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
SB 157 2