| 1 | 1 | | |
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| 2 | 2 | | Introduced Version |
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| 3 | 3 | | HOUSE BILL No. 1449 |
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| 4 | 4 | | _____ |
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| 5 | 5 | | DIGEST OF INTRODUCED BILL |
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| 6 | 6 | | Citations Affected: IC 6-1.1-12-37.7. |
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| 7 | 7 | | Synopsis: Residential property tax relief. Provides an assessed value |
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| 8 | 8 | | stabilization deduction for homestead property after applying the |
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| 9 | 9 | | standard homestead and supplemental homestead deductions taking |
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| 10 | 10 | | into account the year over year change in the homestead's assessed |
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| 11 | 11 | | value compared to the year over year change in the Consumer Price |
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| 12 | 12 | | Index. |
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| 13 | 13 | | Effective: January 1, 2026. |
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| 14 | 14 | | Slager |
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| 15 | 15 | | January 21, 2025, read first time and referred to Committee on Ways and Means. |
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| 16 | 16 | | 2025 IN 1449—LS 7670/DI 120 Introduced |
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| 17 | 17 | | First Regular Session of the 124th General Assembly (2025) |
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| 18 | 18 | | PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana |
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| 19 | 19 | | Constitution) is being amended, the text of the existing provision will appear in this style type, |
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| 20 | 20 | | additions will appear in this style type, and deletions will appear in this style type. |
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| 21 | 21 | | Additions: Whenever a new statutory provision is being enacted (or a new constitutional |
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| 22 | 22 | | provision adopted), the text of the new provision will appear in this style type. Also, the |
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| 23 | 23 | | word NEW will appear in that style type in the introductory clause of each SECTION that adds |
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| 24 | 24 | | a new provision to the Indiana Code or the Indiana Constitution. |
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| 25 | 25 | | Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts |
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| 26 | 26 | | between statutes enacted by the 2024 Regular Session of the General Assembly. |
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| 27 | 27 | | HOUSE BILL No. 1449 |
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| 28 | 28 | | A BILL FOR AN ACT to amend the Indiana Code concerning |
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| 29 | 29 | | taxation. |
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| 30 | 30 | | Be it enacted by the General Assembly of the State of Indiana: |
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| 31 | 31 | | 1 SECTION 1. IC 6-1.1-12-37.7 IS ADDED TO THE INDIANA |
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| 32 | 32 | | 2 CODE AS A NEW SECTION TO READ AS FOLLOWS |
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| 33 | 33 | | 3 [EFFECTIVE JANUARY 1, 2026]: Sec. 37.7. (a) As used in this |
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| 34 | 34 | | 4 section, "net assessed value" means the assessed value of a |
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| 35 | 35 | | 5 homestead after the application of the standard deduction under |
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| 36 | 36 | | 6 section 37 of this chapter, the supplemental deduction under |
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| 37 | 37 | | 7 section 37.5 of this chapter, and the deduction under this section, |
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| 38 | 38 | | 8 but before the application of any other deduction, exemption, or |
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| 39 | 39 | | 9 credit for which the person is eligible. |
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| 40 | 40 | | 10 (b) A person who is entitled to a standard deduction from the |
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| 41 | 41 | | 11 assessed value of property under section 37 of this chapter is also |
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| 42 | 42 | | 12 entitled to receive an assessed value stabilization deduction from |
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| 43 | 43 | | 13 the assessed value of the homestead to which the standard |
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| 44 | 44 | | 14 deduction applies after the application of the standard deduction |
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| 45 | 45 | | 15 and the supplemental standard deduction under section 37.5 of this |
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| 46 | 46 | | 16 chapter, but before the application of any other deduction, |
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| 47 | 47 | | 17 exemption, or credit for which the person is eligible. |
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| 48 | 48 | | 2025 IN 1449—LS 7670/DI 120 2 |
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| 49 | 49 | | 1 (c) The amount of the deduction under this section is equal to |
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| 50 | 50 | | 2 STEP SEVEN in the following formula: |
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| 51 | 51 | | 3 STEP ONE: For each homestead, determine the quotient of: |
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| 52 | 52 | | 4 (A) the net assessed value of the homestead for the |
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| 53 | 53 | | 5 assessment date; divided by |
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| 54 | 54 | | 6 (B) the net assessed value of the homestead for the |
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| 55 | 55 | | 7 immediately preceding year; |
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| 56 | 56 | | 8 minus one (1), expressed as a percentage. |
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| 57 | 57 | | 9 STEP TWO: Determine the change in the Consumer Price |
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| 58 | 58 | | 10 Index for the Midwest Region, as published by the United |
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| 59 | 59 | | 11 States Bureau of Labor Statistics for the calendar year |
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| 60 | 60 | | 12 compared to the Consumer Price Index for the Midwest |
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| 61 | 61 | | 13 Region in the calendar year immediately preceding that |
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| 62 | 62 | | 14 calendar year, expressed as a percentage. |
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| 63 | 63 | | 15 STEP THREE: Determine the greater of: |
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| 64 | 64 | | 16 (A) STEP TWO; or |
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| 65 | 65 | | 17 (B) three percent (3%). |
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| 66 | 66 | | 18 STEP FOUR: Determine the lesser of: |
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| 67 | 67 | | 19 (A) STEP ONE; or |
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| 68 | 68 | | 20 (B) STEP THREE. |
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| 69 | 69 | | 21 STEP FIVE: Determine: |
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| 70 | 70 | | 22 (A) the net assessed value of the homestead for the |
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| 71 | 71 | | 23 immediately preceding year; multiplied by |
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| 72 | 72 | | 24 (B) the STEP FOUR percentage plus one (1). |
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| 73 | 73 | | 25 STEP SIX: Determine: |
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| 74 | 74 | | 26 (A) the gross assessed value of the homestead for the |
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| 75 | 75 | | 27 calendar year; minus |
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| 76 | 76 | | 28 (B) the amount of assessed value deducted under section 37 |
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| 77 | 77 | | 29 of this chapter plus the amount of assessed value deducted |
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| 78 | 78 | | 30 under section 37.5 of this chapter for the calendar year. |
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| 79 | 79 | | 31 STEP SEVEN: Determine the result of: |
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| 80 | 80 | | 32 (A) STEP SIX; minus |
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| 81 | 81 | | 33 (B) STEP FIVE. |
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| 82 | 82 | | 2025 IN 1449—LS 7670/DI 120 |
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