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 6373 NOTE PREPARED: Feb 6, 2024
BILL NUMBER: SB 246 BILL AMENDED:
SUBJECT: Assessment of Wetlands Classified as Wildlands.
FIRST AUTHOR: Sen. Glick BILL STATUS: As Passed Senate
FIRST SPONSOR: Rep. Baird
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides that a parcel of land that: (1) is at least 1/2 of an acre in size;
and (2) contains wetlands, as delineated by a person certified in wetland delineation; may be classified as
wildlands for purposes of property tax assessment.
Effective Date: July 1, 2024.
Explanation of State Expenditures: A person that wishes to have land classified as wildlands must file an
application with the State Forester. The State Forester will incur additional workload to process new
classification applications permitted under this bill.
Additionally, the Department of Natural Resources (DNR) will incur additional expense to produce signs
that owners of classified land must post. The amount of additional expense depends on the number of parcels
that are ultimately classified and need signs. Owners of land classified under this bill must post two signs
on the parcel.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: This bill will result in reduced assessed valuation (AV) and increased tax
rates. The increased rates will shift some property taxes from the owners of land classified as wildlands under
this bill to all other taxpayers. Additionally, local revenues will be reduced due to tax caps. The bill could
first affect taxes payable in CY 2026.
SB 246 1 Currently, a parcel of land may be classified as wildlands if it measures at least 10 acres and it contains at
least one of four types of features, one of which is wetlands. This bill changes the 10 acre minimum to one-
half of an acre if the parcel contains wetlands. Classified land will be assessed at $15.65 per acre for taxes
payable in CY 2024. The assessment rate changes each year with the change in the Consumer Price Index
for All Urban Consumers (CPI-U). The estimated AV of classified land for taxes payable in CY 2026 is
$16.68 per acre.
There are about 56,700 parcels that measure at least one-half of an acre, but less than 10 acres, and also
contain wetlands. These parcels would qualify for classification as wildlands under this bill. The number of
qualified landowners who would apply for classification of these parcels is uncertain. This analysis shows
the maximum impact if the owners of all identified parcels were to apply for and receive classification
beginning with taxes payable in CY 2026.
Beginning in CY 2026, qualifying landowners could save about $4.7 M per year if all of the parcels become
classified. Other taxpayers would have tax increases totaling about $2.7 M per year. Local property tax
revenues in CY 2026 would be reduced by an estimated total of $2.0 M. The following table summarizes the
maximum local revenue change by taxing unit type.
Estimated Maximum Change
in Net Revenue
Unit Type CY 2026
Counties -350,000
Townships -65,000
Cities and Towns -511,000
School Corporations -635,000
Libraries -51,000
Special Units -48,000
TIF -295,000
Total -1,955,000
Total Without TIF -1,660,000
State Agencies Affected: Department of Natural Resources; State Forester.
Local Agencies Affected: County assessors; Local civil taxing units and school corporations.
Information Sources: LSA Property Tax Database; Department of Local Government Finance; National
Wetlands Inventory, U.S. Fish & Wildlife, https://www.fws.gov/program/national-wetlands-inventory.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
SB 246 2