LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7738 NOTE PREPARED: Jan 31, 2025
BILL NUMBER: HB 1631 BILL AMENDED:
SUBJECT: Real Property Assessments.
FIRST AUTHOR: Rep. Ireland BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides a maximum property tax liability credit for homestead property.
The bill specifies a credit amount for certain qualified individuals and specifies the credit amount for all
other homestead owners.
Effective Date: January 1, 2026.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: County auditors will have additional programming costs to implement
the changes to the tax computations. Additionally, the auditors will have to identify homesteads where the
owners qualify for the 2% property tax growth cap.
Explanation of Local Revenues: Under this provision, CY 2027 property tax bills for homesteads will be
capped at the net tax billed in CY 2021. Beginning in CY 2028, homestead tax bills may increase by no more
than 2% or 3% per year, depending on age, family status, and income.
Available parcel-level property tax data does not include age of householder, family status, or income. For
this reason, fiscal impact estimates are presented as a range where the policy was applied (A) with a 3%
annual growth cap for all homesteads, and (B) with a 2% annual growth cap for all homesteads. (CY 2027
figures in these tables are not presented as a range because the difference in the model results between the
2% cap and 3% cap scenarios is not statistically significant as CY 2027 homestead taxes are further limited
to the CY 2021 tax amount.)
The difference between the uncapped, calculated tax amount and the cap under the bill will be applied as a
credit on the tax bill. The credit represents both a tax reduction for the taxpayer and a revenue reduction for
local taxing units. The homestead tax and local revenue reduction is estimated at $1,590 M in CY 2027 and
a range of $1,780 M to $1,815 M in CY 2028.
HB 1631 1 The following table shows the estimated net revenue changes by taxing unit type.
[Total estimated local property tax revenue changes by county appear in Appendix A. Estimated local
property tax revenue changes by taxing unit are available at this link.]
Estimated Net Revenue Change ($ Millions)
Unit Type CY 2027 CY 2028
Counties -278 -314 to -320
Townships -60 -67 to -69
Cities and Towns -346 -391 to -399
School Corporations -724 -803 to -819
Libraries -63 -71 to -73
Special Units -110 -122 to -125
TIF -9 -11 to -11
Total -1,590 -1,780 to -1,815
Total Without TIF -1,581 -1,769 to -1,804
Note: Totals may not sum due to rounding.
State Agencies Affected:
Local Agencies Affected: County auditors; Civil taxing units and school corporations.
Information Sources: LSA property tax database.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
HB 1631 2 Appendix A.
Estimated Change in Net Revenue
County CY 2027 CY 2028
Adams -$5,950,000 -$6,610,000 to -$6,721,000
Allen -$118,487,000 -$134,291,000 to -$136,356,000
Bartholomew -$22,508,000 -$25,644,000 to -$26,084,000
Benton -$2,428,000 -$2,804,000 to -$2,831,000
Blackford -$2,214,000 -$2,513,000 to -$2,545,000
Boone -$34,935,000 -$39,416,000 to -$40,437,000
Brown -$1,820,000 -$1,989,000 to -$2,026,000
Carroll -$2,987,000 -$3,335,000 to -$3,387,000
Cass -$5,175,000 -$5,893,000 to -$5,978,000
Clark -$33,657,000 -$37,367,000 to -$38,046,000
Clay -$888,000 -$1,239,000 to -$1,273,000
Clinton -$6,093,000 -$6,593,000 to -$6,686,000
Crawford -$898,000 -$1,023,000 to -$1,050,000
Daviess -$4,999,000 -$5,688,000 to -$5,786,000
Dearborn -$7,506,000 -$8,161,000 to -$8,425,000
Decatur -$5,544,000 -$6,437,000 to -$6,528,000
DeKalb -$9,055,000 -$10,745,000 to -$10,911,000
Delaware -$15,918,000 -$18,153,000 to -$18,451,000
Dubois -$10,251,000 -$11,019,000 to -$11,215,000
Elkhart -$44,622,000 -$49,533,000 to -$50,499,000
Fayette -$3,460,000 -$4,046,000 to -$4,102,000
Floyd -$15,574,000 -$17,041,000 to -$17,473,000
Fountain -$2,660,000 -$3,018,000 to -$3,064,000
Franklin -$4,779,000 -$5,420,000 to -$5,512,000
Fulton -$1,533,000 -$1,735,000 to -$1,790,000
Gibson -$5,999,000 -$6,884,000 to -$7,006,000
Grant -$8,218,000 -$9,394,000 to -$9,528,000
Greene -$1,761,000 -$1,962,000 to -$2,052,000
Hamilton -$185,451,000 -$205,087,000 to -$209,842,000
Hancock -$28,908,000 -$32,721,000 to -$33,365,000
Harrison -$5,815,000 -$6,597,000 to -$6,732,000
Hendricks -$64,824,000 -$74,798,000 to -$76,289,000
Henry -$7,050,000 -$7,933,000 to -$8,069,000
Howard -$17,591,000 -$20,444,000 to -$20,734,000
Huntington -$6,393,000 -$7,518,000 to -$7,662,000
Jackson -$7,358,000 -$8,172,000 to -$8,281,000
Jasper -$3,773,000 -$4,377,000 to -$4,474,000
Jay -$603,000 -$751,000 to -$788,000
Jefferson -$3,542,000 -$3,946,000 to -$4,042,000
Jennings -$3,272,000 -$3,742,000 to -$3,812,000
Johnson -$47,840,000 -$51,700,000 to -$52,796,000
Knox -$4,301,000 -$4,596,000 to -$4,684,000
Kosciusko -$18,190,000 -$20,382,000 to -$20,716,000
LaGrange -$6,395,000 -$7,241,000 to -$7,348,000
Lake -$138,400,000 -$157,513,000 to -$160,775,000
LaPorte -$16,072,000 -$18,117,000 to -$18,624,000
Lawrence -$8,278,000 -$9,405,000 to -$9,563,000
Madison -$17,694,000 -$20,441,000 to -$20,933,000
HB 1631 3 Appendix A.
Estimated Change in Net Revenue
County CY 2027 CY 2028
Marion -$233,797,000 -$258,359,000 to -$263,271,000
Marshall -$8,937,000 -$10,113,000 to -$10,284,000
Martin -$1,167,000 -$1,407,000 to -$1,426,000
Miami -$3,523,000 -$3,643,000 to -$3,692,000
Monroe -$30,840,000 -$33,291,000 to -$33,962,000
Montgomery -$5,440,000 -$5,615,000 to -$5,717,000
Morgan -$14,146,000 -$14,755,000 to -$14,977,000
Newton -$2,668,000 -$3,240,000 to -$3,302,000
Noble -$7,016,000 -$7,714,000 to -$7,866,000
Ohio -$1,149,000 -$1,291,000 to -$1,313,000
Orange -$2,502,000 -$2,909,000 to -$2,954,000
Owen -$3,181,000 -$3,610,000 to -$3,678,000
Parke -$1,419,000 -$1,628,000 to -$1,652,000
Perry -$2,451,000 -$2,745,000 to -$2,791,000
Pike -$2,208,000 -$2,524,000 to -$2,562,000
Porter -$51,079,000 -$56,690,000 to -$57,979,000
Posey -$6,384,000 -$7,259,000 to -$7,361,000
Pulaski -$824,000 -$1,039,000 to -$1,061,000
Putnam -$4,111,000 -$4,676,000 to -$4,772,000
Randolph -$1,018,000 -$1,076,000 to -$1,123,000
Ripley -$2,085,000 -$2,573,000 to -$2,676,000
Rush -$2,746,000 -$3,233,000 to -$3,284,000
St. Joseph -$76,461,000 -$88,324,000 to -$89,613,000
Scott -$2,268,000 -$2,530,000 to -$2,592,000
Shelby -$6,188,000 -$6,956,000 to -$7,121,000
Spencer -$3,685,000 -$4,251,000 to -$4,311,000
Starke -$4,102,000 -$4,777,000 to -$4,848,000
Steuben -$5,717,000 -$6,579,000 to -$6,712,000
Sullivan -$1,628,000 -$1,931,000 to -$1,970,000
Switzerland -$521,000 -$594,000 to -$611,000
Tippecanoe -$36,527,000 -$41,451,000 to -$42,087,000
Tipton -$2,780,000 -$3,251,000 to -$3,303,000
Union -$661,000 -$789,000 to -$810,000
Vanderburgh -$28,808,000 -$29,700,000 to -$30,390,000
Vermillion -$1,940,000 -$2,262,000 to -$2,303,000
Vigo -$11,788,000 -$12,635,000 to -$12,965,000
Wabash -$3,618,000 -$3,717,000 to -$3,782,000
Warren -$625,000 -$700,000 to -$724,000
Warrick -$13,584,000 -$14,766,000 to -$15,135,000
Washington -$3,041,000 -$3,554,000 to -$3,637,000
Wayne -$7,010,000 -$7,473,000 to -$7,661,000
Wells -$6,779,000 -$7,538,000 to -$7,614,000
White -$4,581,000 -$5,378,000 to -$5,449,000
Whitley -$7,229,000 -$8,230,000 to -$8,401,000
Total -$1,589,897,000 -$1,780,208,000 to -$1,815,032,000
Note: Totals may not sum due to rounding.
HB 1631 4