LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7530 NOTE PREPARED: Jan 7, 2025
BILL NUMBER: HB 1250 BILL AMENDED:
SUBJECT: Assessment of Prime Farmland.
FIRST AUTHOR: Rep. Culp BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides a reduced property tax assessment classification for prime
farmland.
Effective Date: January 1, 2026.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: Local assessors will have additional programming costs associated
with valuing prime farmland at a reduced base assessment rate.
Explanation of Local Revenues: Beginning with taxes payable in CY 2027, this provision will result in
reduced property tax assessments for farmland parcels that have a soil productivity factor of at least 1.0 for
at least 50% of the parcel. The land must be tillable, currently devoted to agricultural use, and used as part
of an agricultural operation. An owner who does not use the land as farmland for at least ten years must repay
any tax savings plus interest. The taxes and interest will be distributed to the taxing units serving the
property.
The reduced assessments will result in increased tax rates, which will shift taxes to other property and in
some cases reduce local revenue due to tax caps. The CY 2027 and CY 2028 tax shifts and revenue losses
are summarized in the following tables. (See Appendix A for total revenue change estimates by county.)
HB 1250 1 Estimated Net Tax Change ($ Millions)
Property Type CY 2027 CY 2028
Homesteads 12.0 9.6
Farmland -40.2 -31.5
Other Residential 2.6 2.1
Apartments 0.3 0.2
Ag Business 2.2 1.8
Other Real 4.1 3.1
Personal Property 6.9 5.3
Total -12.1 -9.4
Note: Totals may not sum due to rounding.
Estimated Net Revenue Change ($ Millions)
Unit Type CY 2027 CY 2028
Counties -4.7 -3.7
Townships -0.7 -0.6
Cities and Towns -2.9 -2.3
School Corporations -5.0 -3.9
Libraries -0.5 -0.4
Special Units -0.4 -0.2
TIF 2.2 1.7
Total -12.1 -9.4
Total Without TIF -14.3 -11.1
Note: Totals may not sum due to rounding.
For taxes payable in CY 2027, the assessed value (AV) of prime farmland will equal 85% of the assessment
for taxes payable in CY 2026. Beginning with taxes payable in CY 2028, the assessment will grow annually
by the percentage change in the Consumer Price Index (CPI-U). The following table contains the estimated
prime farmland base assessment rate per acre under current law and as proposed.
Estimated Prime Farmland Base Assessment Rate
Pay YearCurrent Proposed ChangeChange %
2025 2,280
2026 2,390
2027 2,520 2,030 -490 -19.4%
2028 2,480 2,100 -380 -15.3%
2029 2,460 2,150 -310 -12.6%
2030 2,520 2,190 -330 -13.1%
2031 2,420 2,240 -180 -7.4%
State Agencies Affected: State Department of Agriculture; Indiana Land Resources Council.
Local Agencies Affected: County assessors; Local civil taxing units and school corporations.
Information Sources: LSA Property Tax Database.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1250 2 Appendix A.
Estimated Change in Revenue ($)
CntyCounty CY 2027 CY 2028
01 Adams -155,000 -122,000
02 Allen -227,000 -202,000
03 Bartholomew -134,000 -110,000
04 Benton -510,000 -407,000
05 Blackford -57,000 -46,000
06 Boone -34,000 -25,000
07 Brown -1,000 -1,000
08 Carroll -64,000 -50,000
09 Cass -355,000 -281,000
10 Clark -10,000 -11,000
11 Clay -17,000 -14,000
12 Clinton -437,000 -353,000
13 Crawford -4,000 -3,000
14 Daviess -116,000 -91,000
15 Dearborn -16,000 -15,000
16 Decatur -66,000 -52,000
17 DeKalb -10,000 -8,000
18 Delaware -250,000 -201,000
19 Dubois -78,000 -65,000
20 Elkhart -119,000 -89,000
21 Fayette -134,000 -103,000
22 Floyd -3,000 -2,000
23 Fountain -173,000 -141,000
24 Franklin -22,000 -17,000
25 Fulton -85,000 -70,000
26 Gibson -103,000 -90,000
27 Grant -203,000 -166,000
28 Greene -94,000 -84,000
29 Hamilton -264,000 -169,000
30 Hancock -162,000 -104,000
31 Harrison -7,000 -6,000
32 Hendricks -184,000 -125,000
33 Henry -293,000 -225,000
34 Howard -486,000 -374,000
35 Huntington -165,000 -126,000
36 Jackson -63,000 -52,000
37 Jasper -38,000 -30,000
38 Jay -26,000 -20,000
39 Jefferson -109,000 -85,000
40 Jennings -67,000 -53,000
41 Johnson -298,000 -229,000
42 Knox -104,000 -84,000
43 Kosciusko -40,000 -32,000
44 LaGrange -40,000 -31,000
45 Lake -110,000 -72,000
46 LaPorte -120,000 -96,000
47 Lawrence -15,000 -12,000
48 Madison -824,000 -605,000
49 Marion -231,000 -45,000
HB 1250 3 Appendix A.
Estimated Change in Revenue ($)
CntyCounty CY 2027 CY 2028
50 Marshall -117,000 -93,000
51 Martin -6,000 -5,000
52 Miami -70,000 -62,000
53 Monroe -10,000 -4,000
54 Montgomery -302,000 -259,000
55 Morgan -28,000 -22,000
56 Newton -95,000 -80,000
57 Noble -12,000 -9,000
58 Ohio -1,000 0
59 Orange 0 0
60 Owen -10,000 -8,000
61 Parke -45,000 -35,000
62 Perry -7,000 -5,000
63 Pike -156,000 -124,000
64 Porter -67,000 -49,000
65 Posey -65,000 -53,000
66 Pulaski -25,000 -20,000
67 Putnam -62,000 -50,000
68 Randolph -143,000 -117,000
69 Ripley -34,000 -28,000
70 Rush -300,000 -238,000
71 St. Joseph -159,000 -109,000
72 Scott -35,000 -31,000
73 Shelby -104,000 -84,000
74 Spencer -21,000 -18,000
75 Starke -14,000 -11,000
76 Steuben -6,000 -5,000
77 Sullivan -581,000 -479,000
78 Switzerland -2,000 -2,000
79 Tippecanoe -162,000 -114,000
80 Tipton -175,000 -140,000
81 Union -38,000 -31,000
82 Vanderburgh -202,000 -174,000
83 Vermillion -277,000 -224,000
84 Vigo -681,000 -537,000
85 Wabash -147,000 -120,000
86 Warren -151,000 -121,000
87 Warrick -7,000 -7,000
88 Washington -69,000 -55,000
89 Wayne -271,000 -223,000
90 Wells -37,000 -29,000
91 White -285,000 -217,000
92 Whitley -4,000 -4,000
Total -12,104,000 -9,394,000
Note: Totals may not sum due to rounding.
HB 1250 4