LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7190 NOTE PREPARED: Jan 7, 2025
BILL NUMBER: HB 1616 BILL AMENDED:
SUBJECT: Department of Natural Resources.
FIRST AUTHOR: Rep. Lindauer BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: Tax Lien Sales Involving Mineral Interests: The bill establishes a procedure to
be followed when there are unpaid taxes assessed on a mineral interest.
Residential Historic Rehabilitation Credit: The bill adds a $10,000 cap on a tax credit for a taxpayer who
completes preservation or rehabilitation of a historic property.
Whitewater Canal: The bill provides that: (1) an instrument that is recorded with the office of recorder for
Franklin County on or before January 1, 1950, is deemed to meet the requirements to transfer title to the
state; and (2) an action relating to title of real property transferred from the Whitewater Canal Association
to the state must be brought not more than 50 years after January 1, 1950.
Submerged Lands Preserves: The bill provides conditions and guidelines under which the Department of
Natural Resources (DNR) may establish submerged lands preserves.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Whitewater Canal: The bill could reduce future litigation and defense
costs to the state associated with determining ownership of the Whitewater Canal system property.
Submerged Lands Preserves: The bill could increase workload and expenditures for the DNR’s Division of
Nature Preserves as it allows them to establish a submerged lands preserve. It requires that any current nature
preserve that includes certain abandoned property (pertaining to submerged aircraft or watercraft) to be
reclassified as a submerged lands preserve. The bill allows the Natural Resources Commission (NRC) to
adopt rules to implement these provisions. The DNR and the NRC should be able to implement these
requirements using existing staffing and resources.
Explanation of State Revenues: Residential Historic Rehabilitation Credits: Revenues to the state General
Fund could increase, but not until FY 2030 or after, by establishing a $10,000 cap on individual credits. This
would apply to credits certified after June 2025, but the impact would not be seen until all previously
HB 1616 1 certified credits are no longer able to be claimed, as homeowners are able to carry the credit forward for up
to 15 years, since they may not have enough tax liability to use the credit right away. Additionally, the
program has an annual cap of $250,000 for all credits. The DNR states that due to the annual cap and the
increased use of the program in recent years, they are currently certifying credits for FY 2030. This program
offers a credit of 20% of eligible expenses. Therefore, the new cap would reduce credits for any project with
total qualified expenditures over $50,000.
Explanation of Local Expenditures:
Explanation of Local Revenues: Tax Lien Sales Involving Mineral Interests: The bill could delay the timing
of when a county receives revenue from property taxes on a delinquent mineral interest or its surface
property. Conversely, it could increase the amount it receives if a delinquent owner does not redeem the
mineral interest (by paying all delinquent amounts within one year of receiving a notice), and the county
obtains ownership of the mineral interest through the court. The tax lien sale for its surface property would
be postponed until after the tax lien for the mineral interests are dealt with. The impact is likely minimal.
State Agencies Affected: Department of Natural Resources; Natural Resources Commission.
Local Agencies Affected: Counties.
Information Sources: www.mycase.in.gov
https://www.indy.gov/activity/prepare-for-a-tax-sale
Marion County, Indiana 2023 Online Tax Sale Information and Procedures;
https://www.in.gov/dnr/historic-preservation/financial-assistance/residential-tax-credit/;
https://indianahistory.org/wp-content/uploads/whitewater-canal-association-records-1939-1964.pdf
https://indianahistory.org/wp-content/uploads/white-water-canal-collection-1835-2000.pdf
Fiscal Analyst: Heather Puletz, 317-234-9484.
HB 1616 2