Introduced Version
HOUSE BILL No. 1437
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-18.5-31.
Synopsis: Township maximum property tax levy. 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. Prescribes the
maximum amount of increase in a township's maximum property tax
levy. Prescribes a township's maximum property tax levy following an
increase.
Effective: July 1, 2025.
Campbell
January 21, 2025, read first time and referred to Committee on Ways and Means.
2025 IN 1437—LS 6515/DI 125 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1437
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-18.5-31 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2025]: Sec. 31. (a) Subject to subsection (b),
4 the executive of a township may, upon approval by the township
5 fiscal body, submit a petition to the department of local
6 government finance for an increase in the township's maximum
7 permissible ad valorem property tax levy for property taxes first
8 due and payable in any particular year for which a petition is
9 submitted under this section if:
10 (1) the township has a population of more than ten thousand
11 (10,000); or
12 (2) during the ten (10) year period immediately preceding the
13 year in which the petition is submitted, the township had an
14 increase in the township's population of at least four thousand
15 (4,000);
16 as determined by the township fiscal body, and as may be
17 prescribed by the department of local government finance. The
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1 township fiscal body may use the most recently available
2 population data issued by the Bureau of the Census during the ten
3 (10) year period immediately preceding the petition.
4 (b) Before the township fiscal body may approve a petition
5 under subsection (a), the township fiscal body shall hold a public
6 hearing on the petition. The township fiscal body shall give notice
7 of the public hearing under IC 5-3-1. At the public hearing, the
8 township fiscal body shall make available to the public the
9 following:
10 (1) A fiscal plan describing the need for the increase to the
11 levy and the expenditures for which the revenue generated
12 from the increase to the levy will be used.
13 (2) A statement that the proposed increase will be a
14 permanent increase to the township's maximum permissible
15 ad valorem property tax levy.
16 (3) The estimated effect of the proposed increase on
17 taxpayers.
18 After the township fiscal body approves the petition, the township
19 shall immediately notify the other civil taxing units and school
20 corporations in the county that are located in a taxing district
21 where the township is also located.
22 (c) Subject to subsection (e), if the executive of the township
23 submits a petition under subsection (a), the department of local
24 government finance shall increase the maximum permissible ad
25 valorem property tax levy for property taxes first due and payable
26 in the year for which the petition is submitted to an amount that
27 would result in an increase in the property tax rate that may not
28 exceed one-half cent ($0.005) per one hundred dollars ($100) of
29 assessed valuation.
30 (d) Subject to subsection (e), the township's maximum
31 permissible ad valorem property tax levy for property taxes first
32 due and payable in the year for which the petition is submitted, as
33 adjusted under this section, shall be used in the determination of
34 the township's maximum permissible ad valorem property tax levy
35 under this chapter for property taxes first due and payable in the
36 year immediately following the first year of the increase and
37 thereafter.
38 (e) The executive of a township that meets the requirements
39 under subsection (a) may submit a petition to the department of
40 local government finance under this section in multiple years.
41 However, if a township receives an increase under this section, the
42 township's maximum permissible ad valorem property tax levy
2025 IN 1437—LS 6515/DI 125 3
1 under this chapter for property taxes first due and payable in the
2 year immediately following any increase may not exceed the
3 following:
4 (1) In the case of a township that has a percentage increase in
5 the township's population of not more than seven and one-half
6 percent (7.5%), as determined by the township fiscal body,
7 and as may be prescribed by the department of local
8 government finance, during the ten (10) year period
9 immediately preceding the year in which the petition is
10 submitted, an amount that would result in a property tax rate
11 that may not exceed one cent ($0.01) per one hundred dollars
12 ($100) of assessed valuation.
13 (2) In the case of a township that has a percentage increase in
14 the township's population of more than seven and one-half
15 percent (7.5%), as determined by the township fiscal body,
16 and as may be prescribed by the department of local
17 government finance, during the ten (10) year period
18 immediately preceding the year in which the petition is
19 submitted, an amount that would result in a property tax rate
20 that may not exceed two and one-half cents ($0.025) per one
21 hundred dollars ($100) of assessed valuation.
22 The township fiscal body may use the most recently available
23 population data issued by the Bureau of the Census during the ten
24 (10) year period immediately preceding the petition.
25 (f) This section expires June 30, 2030.
2025 IN 1437—LS 6515/DI 125