LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6415 NOTE PREPARED: Dec 9, 2024
BILL NUMBER: HB 1469 BILL AMENDED:
SUBJECT: Local Income Tax Supplemental Distributions.
FIRST AUTHOR: Rep. Porter BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill changes the local income tax threshold percentages of a county trust
account for purposes of determining whether a county shall receive a supplemental distribution.
Effective Date: January 1, 2025 (retroactive).
Explanation of State Expenditures: State Budget Agency (SBA): The bill’s requirement of changing the
trust account balance percentage threshold used in the supplemental distribution formula is 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: The bill's requirement of changing the trust account balance percentage
threshold used in the supplemental distribution formula is as follows. (The threshold under current law is
15%.)
• 15% for CY 2025
• 12.5% for CY 2026
• 10% for CY 2027 forward
This change will result in a temporary increase in local income tax (LIT) revenue for local units for those
counties that meet the threshold for receiving a supplemental LIT distribution. By lowering the percentage
thresholds, more LIT revenue will be distributed from the county trust accounts, in effect accelerating the
timeline for when counties receive the LIT revenue that has been collected and lowering the balances in the
county trust accounts. The actual fiscal impact will vary by county and will be contingent on the trust account
balances as of December 31 for two years prior to the year the supplemental distribution is determined (i.e.,
“determination year”), the amount of certified LIT distributions for the determination year, and any
HB 1469 1 supplemental distributions that the county may have received in the year prior to the determination year.
Additional Information - As an example, applying the following threshold percentages referenced in the bill
to the CY 2025 estimated supplemental distributions for those counties eligible to receive a supplemental
distribution, there would be an additional amount in supplemental distribution statewide for CY 2025
(compared to what the counties are estimated to receive under the current threshold of 15%):
• Using 12.5%: $69 M
• Using 10%: $138 M
The actual amount of supplemental distributions for CY 2025 will be determined by the SBA in May 2025.
State Agencies Affected: State Budget Agency.
Local Agencies Affected: Units of local government that receive LIT revenue.
Information Sources: CY 2025 Certified Local Income Tax Distribution Data:
https://www.in.gov/sba/files/2025-Certification-Calculations-November.pdf
Local Income Tax Balance Reports:
https://www.in.gov/sba/budget-information/local-income-tax-data/local-income-tax-balance-reports-throu
gh-2020-actuals-and-estimated-for-2021-February-2022/
Fiscal Analyst: James Johnson, 317-232-9869.
HB 1469 2