LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6282 NOTE PREPARED: Nov 18, 2024
BILL NUMBER: HB 1379 BILL AMENDED:
SUBJECT: Property Tax Deduction for Water Conservation.
FIRST AUTHOR: Rep. Boy BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides a property tax deduction for the use of permeable pavement in
new construction projects.
Effective Date: January 1, 2026.
Explanation of State Expenditures: Department of Local Government Finance (DLGF): This bill will
require the DLGF to prescribe and update as necessary the deduction application that the property owner
would need to file with their county auditor in order to claim this deduction. The bill’s requirements are
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.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: This bill grants a property tax deduction to a real property owner who
installs a permeable pavement on their property to allow for more controlled storm water runoffs. The
amount of the deduction is equal to the percentage of the owner’s real property on which a permeable
pavement is installed multiplied by the assessed value of the owner’s real property. The deduction would
result in a shift of property taxes from those properties eligible to receive the deduction to all other properties
starting with taxes payable in CY 2026. Additionally, assuming that property tax levies are either static or
increase, local units of government could potentially experience an increase in property tax cap circuit
breaker losses as a result of the assessed value base being reduced from this deduction. The magnitude of
the shift, as well as any potential increase in property tax cap circuit breaker losses, would vary from county
to county and would be contingent on several factors, including the total number of real properties in each
county with a permeable pavement installed and the assessed value of those properties.
State Agencies Affected: Department of Local Government Finance.
HB 1379 1 Local Agencies Affected: County auditors; Local taxing units.
Information Sources:
Fiscal Analyst: James Johnson, 317-232-9869.
HB 1379 2