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: Feb 1, 2024
BILL NUMBER: SB 157 BILL AMENDED: Jan 30, 2024
SUBJECT: Landlocked Property.
FIRST AUTHOR: Sen. Buck BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: 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, 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:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Landlocked Property: This bill establishes that upon the submission of
an affidavit from the applicable property owner, 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. The affidavit submitted by the property owner verifies that the property
does not have access to any public highway as a result of the state, an agency or political subdivision of the
state vacating one or more public highways and must be signed under oath by the property owner.
Valuing these properties at $0 will result in a decrease in the assessed value base for certain taxing units,
SB 157 1 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:
Local Agencies Affected: County assessors.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
SB 157 2