LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6515 NOTE PREPARED: Dec 9, 2024
BILL NUMBER: HB 1437 BILL AMENDED:
SUBJECT: Township Maximum Property Tax Levy.
FIRST AUTHOR: Rep. Campbell BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides that a township may increase its maximum property tax levy
if the township: (1) has a population of more than 10,000; or (2) experiences population growth of at least
4,000 during a 10 year period. The bill prescribes the maximum amount of increase in a township's maximum
property tax levy, and it prescribes a township's maximum property tax levy following an increase.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Upon receipt of a petition to increase a township’s maximum levy, the
Department of Local Government Finance (DLGF) will calculate the increase and apply the increase to the
maximum levy for the ensuing year. 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: If a township petitions for an increase in its maximum levy amount and
imposes a higher levy as a result, then the township property tax rate and revenue will increase. In areas
where some taxpayers have reached their tax cap, the higher tax rate could cause additional tax cap losses
for all taxing units that serve those taxpayers.
This bill will permit townships (a) with a population over 10,000 or (b) with population growth of at least
4,000 during the most recent 10-year period to petition for a maximum levy increase. Qualifying townships
may petition for an increase in multiple years. If a township receives a maximum levy increase, the
township’s total tax rate for funds subject to the civil maximum levy may not exceed (a) $0.0100 per $100
AV if the 10-year population growth does not exceed 7.5% or (b) $0.0250 if the 10-year population growth
is greater than 7.5%.
HB 1437 1 Based on CY 2024 payable tax data, 127 townships would meet the population requirements to qualify for
an appeal to raise their maximum levy. However, only 48 of those townships have a tax rate below the
maximum rate for townships with appeals. The 48 townships could petition for up to $5.5 M in maximum
levy increases in the first year. Over a period of years, these townships could add a total of approximately
$16.1 M.
The actual fiscal impact will depend on whether a qualifying township petitions for the maximum levy
increase.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: Township fiscal bodies; Local civil taxing units and school corporations.
Information Sources: Local Government Database; Bureau of the Census.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1437 2