Indiana 2025 Regular Session

Indiana House Bill HB1437 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1437
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-18.5-31.
7	7	Synopsis: Township maximum property tax levy. Provides that a
8	8	township may increase its maximum property tax levy if the township:
9	9	(1) has a population of more than 10,000; or (2) experiences population
10	10	growth of at least 4,000 during a 10 year period. Prescribes the
11	11	maximum amount of increase in a township's maximum property tax
12	12	levy. Prescribes a township's maximum property tax levy following an
13	13	increase.
14	14	Effective: July 1, 2025.
15	15	Campbell
16	16	January 21, 2025, read first time and referred to Committee on Ways and Means.
17	17	2025 IN 1437—LS 6515/DI 125 Introduced
18	18	First Regular Session of the 124th General Assembly (2025)
19	19	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
20	20	Constitution) is being amended, the text of the existing provision will appear in this style type,
21	21	additions will appear in this style type, and deletions will appear in this style type.
22	22	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
23	23	provision adopted), the text of the new provision will appear in this style type. Also, the
24	24	word NEW will appear in that style type in the introductory clause of each SECTION that adds
25	25	a new provision to the Indiana Code or the Indiana Constitution.
26	26	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
27	27	between statutes enacted by the 2024 Regular Session of the General Assembly.
28	28	HOUSE BILL No. 1437
29	29	A BILL FOR AN ACT to amend the Indiana Code concerning
30	30	taxation.
31	31	Be it enacted by the General Assembly of the State of Indiana:
32	32	1 SECTION 1. IC 6-1.1-18.5-31 IS ADDED TO THE INDIANA
33	33	2 CODE AS A NEW SECTION TO READ AS FOLLOWS
34	34	3 [EFFECTIVE JULY 1, 2025]: Sec. 31. (a) Subject to subsection (b),
35	35	4 the executive of a township may, upon approval by the township
36	36	5 fiscal body, submit a petition to the department of local
37	37	6 government finance for an increase in the township's maximum
38	38	7 permissible ad valorem property tax levy for property taxes first
39	39	8 due and payable in any particular year for which a petition is
40	40	9 submitted under this section if:
41	41	10 (1) the township has a population of more than ten thousand
42	42	11 (10,000); or
43	43	12 (2) during the ten (10) year period immediately preceding the
44	44	13 year in which the petition is submitted, the township had an
45	45	14 increase in the township's population of at least four thousand
46	46	15 (4,000);
47	47	16 as determined by the township fiscal body, and as may be
48	48	17 prescribed by the department of local government finance. The
49	49	2025 IN 1437—LS 6515/DI 125 2
50	50	1 township fiscal body may use the most recently available
51	51	2 population data issued by the Bureau of the Census during the ten
52	52	3 (10) year period immediately preceding the petition.
53	53	4 (b) Before the township fiscal body may approve a petition
54	54	5 under subsection (a), the township fiscal body shall hold a public
55	55	6 hearing on the petition. The township fiscal body shall give notice
56	56	7 of the public hearing under IC 5-3-1. At the public hearing, the
57	57	8 township fiscal body shall make available to the public the
58	58	9 following:
59	59	10 (1) A fiscal plan describing the need for the increase to the
60	60	11 levy and the expenditures for which the revenue generated
61	61	12 from the increase to the levy will be used.
62	62	13 (2) A statement that the proposed increase will be a
63	63	14 permanent increase to the township's maximum permissible
64	64	15 ad valorem property tax levy.
65	65	16 (3) The estimated effect of the proposed increase on
66	66	17 taxpayers.
67	67	18 After the township fiscal body approves the petition, the township
68	68	19 shall immediately notify the other civil taxing units and school
69	69	20 corporations in the county that are located in a taxing district
70	70	21 where the township is also located.
71	71	22 (c) Subject to subsection (e), if the executive of the township
72	72	23 submits a petition under subsection (a), the department of local
73	73	24 government finance shall increase the maximum permissible ad
74	74	25 valorem property tax levy for property taxes first due and payable
75	75	26 in the year for which the petition is submitted to an amount that
76	76	27 would result in an increase in the property tax rate that may not
77	77	28 exceed one-half cent ($0.005) per one hundred dollars ($100) of
78	78	29 assessed valuation.
79	79	30 (d) Subject to subsection (e), the township's maximum
80	80	31 permissible ad valorem property tax levy for property taxes first
81	81	32 due and payable in the year for which the petition is submitted, as
82	82	33 adjusted under this section, shall be used in the determination of
83	83	34 the township's maximum permissible ad valorem property tax levy
84	84	35 under this chapter for property taxes first due and payable in the
85	85	36 year immediately following the first year of the increase and
86	86	37 thereafter.
87	87	38 (e) The executive of a township that meets the requirements
88	88	39 under subsection (a) may submit a petition to the department of
89	89	40 local government finance under this section in multiple years.
90	90	41 However, if a township receives an increase under this section, the
91	91	42 township's maximum permissible ad valorem property tax levy
92	92	2025 IN 1437—LS 6515/DI 125 3
93	93	1 under this chapter for property taxes first due and payable in the
94	94	2 year immediately following any increase may not exceed the
95	95	3 following:
96	96	4 (1) In the case of a township that has a percentage increase in
97	97	5 the township's population of not more than seven and one-half
98	98	6 percent (7.5%), as determined by the township fiscal body,
99	99	7 and as may be prescribed by the department of local
100	100	8 government finance, during the ten (10) year period
101	101	9 immediately preceding the year in which the petition is
102	102	10 submitted, an amount that would result in a property tax rate
103	103	11 that may not exceed one cent ($0.01) per one hundred dollars
104	104	12 ($100) of assessed valuation.
105	105	13 (2) In the case of a township that has a percentage increase in
106	106	14 the township's population of more than seven and one-half
107	107	15 percent (7.5%), as determined by the township fiscal body,
108	108	16 and as may be prescribed by the department of local
109	109	17 government finance, during the ten (10) year period
110	110	18 immediately preceding the year in which the petition is
111	111	19 submitted, an amount that would result in a property tax rate
112	112	20 that may not exceed two and one-half cents ($0.025) per one
113	113	21 hundred dollars ($100) of assessed valuation.
114	114	22 The township fiscal body may use the most recently available
115	115	23 population data issued by the Bureau of the Census during the ten
116	116	24 (10) year period immediately preceding the petition.
117	117	25 (f) This section expires June 30, 2030.
118	118	2025 IN 1437—LS 6515/DI 125