LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7244 NOTE PREPARED: Jan 31, 2025
BILL NUMBER: SB 1 BILL AMENDED:
SUBJECT: Property Tax Relief.
FIRST AUTHOR: Sen. Holdman BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: Homestead Taxes: This bill amends the homestead standard deduction amount
to equal either: (1) 60% of the homestead's assessed value (AV), in the case of a homestead with an AV that
exceeds $125,000; or (2) $48,000 plus 60% of the remaining AV, in the case of a homestead with an AV of
$125,000 or less. It repeals the supplemental homestead deduction.
Property Tax Growth Cap: The bill provides a maximum property tax liability credit for all taxable real
property. It specifies the credit amount for homesteads and specifies the credit amount for all other taxable
property.
Referenda: This bill provides that a referendum on a controlled project may be held only at a general election
occurring in an even-numbered year, if the preliminary determination to issue bonds or enter into a lease for
the controlled project is made after June 30, 2025. It provides that a referendum for a school operating
referendum tax levy and school safety referendum tax levy may be held only at a general election occurring
in an even-numbered year, if the resolution to hold the referendum is adopted after June 30, 2025. The bill
also makes a change to the language for a school operating levy referendum to include the estimated increase
to the school corporation's property tax levy.
Transparency Portal: The bill requires the Department of Local Government Finance (DLGF) to develop
and maintain a property tax transparency portal through which taxpayers may: (1) compare the property tax
liability in their current tax statement compared to their potential property tax liability based on changes
under a proposed tax rate; and (2) provide taxpayer feedback to the DLGF and local units.
The bill makes corresponding changes and makes technical corrections.
Effective Date: Upon passage; January 1, 2025 (retroactive); July 1, 2025; January 1, 2026.
Explanation of State Expenditures: Transparency Portal: The DLGF will incur additional expense to
develop and maintain a portal on the DLGF website to permit taxpayers to compare their current property
tax liability to a potential tax liability based on a proposed tax rate. The additional development expense is
SB 1 1 estimated at $50,000 in FY 2026.
Explanation of State Revenues:
Explanation of Local Expenditures: Homestead Taxes and Property Tax Growth Cap: 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.
Referenda: Currently, public questions regarding property tax levies may be placed on the ballot of a general
election, municipal election, or primary election. A special election may be held at the taxing unit’s expense.
This bill will restrict public questions regarding capital projects, school operating, and school safety levies
to general elections in even numbered years.
Under this bill, taxing units that would have otherwise requested a special election will save the cost of the
special election. In some cases, this bill will delay a vote on the question. Construction and borrowing costs
could be affected by a delay.
Explanation of Local Revenues: Homestead Taxes and Property Tax Growth Cap: Beginning with taxes
payable in CY 2026, changes to the standard deduction and supplemental standard deduction, along with a
cap on net tax growth will reduce property tax on homesteads compared to current law. Additionally, the
changes to the homeowner deductions will cause a shift of taxes from homeowners to all other property.
However, the growth cap on non-homestead real property taxes will limit the tax shifts from homesteads to
other real property and will also reduce property tax bills for some of these properties as compared to current
law.
Available parcel-level property tax data does not include age of householder, family status, or family 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 2026
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 2026 homestead taxes are further limited
to the CY 2022 tax amount.)
The following table shows the estimated net tax changes by property type.
Estimated Net Tax Change ($ Millions)
Property Type CY 2026 CY 2027 CY 2028
Homesteads -1,292 -1,472 to -1,503-1,667 to -1,731
Farmland 7 -1 22
Other Residential -20 -51 -87
Apartments -9 -23 -38
Ag Business 2 1 -1
Other Real 39 46 53
Personal Property 124 131 139
Total -1,150 -1,369 to -1,401-1,579 to -1,643
Note: Totals may not sum due to rounding.
SB 1 2 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 2026 CY 2027 CY 2028
Counties -211 -251 to -257 -287 to -299
Townships -42 -50 to -51 -57 to -59
Cities and Towns -263 -319 to -326 -378 to -391
School Corporations -536 -626 to -641 -708 to -737
Libraries -41 -49 to -51 -57 to -60
Special Units -70 -82 to -84 -95 to -99
TIF 14 9 to 8 3 to 3
Total -1,150 -1,369 to -1,401-1,579 to -1,643
Total Without TIF -1,164 -1,378 to -1,409-1,582 to -1,645
Note: Totals may not sum due to rounding.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: County auditors; Civil taxing units and school corporations.
Information Sources: LSA property tax database; Scott Maitland, DLGF, 317-232-3777.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
SB 1 3 Appendix A.
Estimated Change in Net Revenue
County CY 2026 CY 2027 CY 2028
Adams -4,123,000 -4,901,000 to -5,010,000 -5,432,000 to -5,652,000
Allen -82,964,000 -100,052,000 to -101,928,000 -117,625,000 to -121,444,000
Bartholomew -12,381,000 -15,131,000 to -15,557,000 -17,841,000 to -18,704,000
Benton -1,665,000 -2,209,000 to -2,235,000 -2,396,000 to -2,448,000
Blackford -1,869,000 -2,206,000 to -2,232,000 -2,444,000 to -2,497,000
Boone -27,686,000 -34,129,000 to -34,952,000 -40,778,000 to -42,458,000
Brown -1,510,000 -1,741,000 to -1,771,000 -1,980,000 to -2,042,000
Carroll -2,021,000 -2,132,000 to -2,178,000 -2,389,000 to -2,483,000
Cass -3,830,000 -4,904,000 to -4,984,000 -5,735,000 to -5,897,000
Clark -25,687,000 -32,383,000 to -33,014,000 -39,435,000 to -40,683,000
Clay -1,002,000 -1,312,000 to -1,330,000 -1,563,000 to -1,599,000
Clinton -4,926,000 -5,605,000 to -5,688,000 -5,972,000 to -6,141,000
Crawford -953,000 -1,185,000 to -1,206,000 -1,344,000 to -1,384,000
Daviess -3,751,000 -4,685,000 to -4,771,000 -5,425,000 to -5,600,000
Dearborn -6,194,000 -6,947,000 to -7,188,000 -7,580,000 to -8,065,000
Decatur -3,171,000 -4,084,000 to -4,172,000 -4,923,000 to -5,101,000
DeKalb -4,973,000 -6,523,000 to -6,671,000 -7,949,000 to -8,252,000
Delaware -12,321,000 -14,952,000 to -15,230,000 -17,474,000 to -18,030,000
Dubois -7,385,000 -8,166,000 to -8,353,000 -8,779,000 to -9,158,000
Elkhart -38,056,000 -46,753,000 to -47,635,000 -55,322,000 to -57,107,000
Fayette -2,861,000 -3,593,000 to -3,642,000 -4,207,000 to -4,305,000
Floyd -10,792,000 -12,116,000 to -12,511,000 -13,411,000 to -14,203,000
Fountain -1,893,000 -2,270,000 to -2,312,000 -2,469,000 to -2,554,000
Franklin -3,258,000 -3,839,000 to -3,924,000 -4,353,000 to -4,526,000
Fulton -1,618,000 -1,983,000 to -2,023,000 -2,186,000 to -2,268,000
Gibson -3,360,000 -4,456,000 to -4,570,000 -5,190,000 to -5,420,000
Grant -6,224,000 -7,608,000 to -7,729,000 -8,748,000 to -8,994,000
Greene -2,225,000 -2,592,000 to -2,661,000 -2,728,000 to -2,863,000
Hamilton -140,107,000 -159,950,000 to -164,009,000 -179,033,000 to -187,324,000
Hancock -21,679,000 -25,931,000 to -26,485,000 -30,364,000 to -31,448,000
Harrison -4,132,000 -5,004,000 to -5,128,000 -5,807,000 to -6,060,000
Hendricks -44,241,000 -54,644,000 to -55,967,000 -64,704,000 to -67,359,000
Henry -5,814,000 -6,833,000 to -6,953,000 -7,567,000 to -7,810,000
Howard -11,638,000 -15,136,000 to -15,415,000 -18,550,000 to -19,107,000
Huntington -4,568,000 -5,706,000 to -5,837,000 -6,686,000 to -6,949,000
Jackson -4,727,000 -5,536,000 to -5,632,000 -6,155,000 to -6,351,000
Jasper -2,621,000 -3,135,000 to -3,215,000 -3,437,000 to -3,600,000
Jay -1,116,000 -1,425,000 to -1,441,000 -1,483,000 to -1,517,000
Jefferson -3,101,000 -3,660,000 to -3,747,000 -4,005,000 to -4,178,000
Jennings -2,422,000 -2,914,000 to -2,978,000 -3,293,000 to -3,420,000
Johnson -35,224,000 -41,865,000 to -42,896,000 -48,649,000 to -50,700,000
Knox -3,622,000 -4,208,000 to -4,286,000 -4,442,000 to -4,601,000
Kosciusko -12,765,000 -15,284,000 to -15,586,000 -17,740,000 to -18,352,000
LaGrange -5,227,000 -6,507,000 to -6,600,000 -7,676,000 to -7,865,000
Lake -104,262,000 -125,658,000 to -128,582,000 -146,953,000 to -152,897,000
LaPorte -12,678,000 -15,339,000 to -15,797,000 -17,721,000 to -18,634,000
Lawrence -6,139,000 -7,447,000 to -7,585,000 -8,713,000 to -8,990,000
Madison -14,358,000 -18,181,000 to -18,601,000 -21,791,000 to -22,623,000
SB 1 4 Appendix A.
Estimated Change in Net Revenue
County CY 2026 CY 2027 CY 2028
Marion -146,050,000 -166,303,000 to -171,055,000 -189,280,000 to -198,804,000
Marshall -7,053,000 -8,516,000 to -8,672,000 -9,798,000 to -10,113,000
Martin -747,000 -1,007,000 to -1,023,000 -1,236,000 to -1,270,000
Miami -3,374,000 -3,816,000 to -3,862,000 -4,063,000 to -4,159,000
Monroe -25,009,000 -30,012,000 to -30,623,000 -34,860,000 to -36,110,000
Montgomery -3,955,000 -4,452,000 to -4,540,000 -4,467,000 to -4,658,000
Morgan -10,737,000 -11,012,000 to -11,207,000 -11,391,000 to -11,800,000
Newton -1,900,000 -2,453,000 to -2,507,000 -2,867,000 to -2,974,000
Noble -4,200,000 -4,823,000 to -4,964,000 -5,250,000 to -5,538,000
Ohio -800,000 -910,000 to -930,000 -1,029,000 to -1,069,000
Orange -1,738,000 -2,106,000 to -2,145,000 -2,411,000 to -2,490,000
Owen -2,396,000 -2,859,000 to -2,918,000 -3,274,000 to -3,394,000
Parke -1,275,000 -1,570,000 to -1,588,000 -1,785,000 to -1,823,000
Perry -1,572,000 -1,904,000 to -1,947,000 -2,144,000 to -2,231,000
Pike -1,640,000 -2,171,000 to -2,207,000 -2,481,000 to -2,552,000
Porter -33,717,000 -38,778,000 to -39,970,000 -43,711,000 to -46,137,000
Posey -4,280,000 -5,291,000 to -5,385,000 -6,084,000 to -6,276,000
Pulaski -707,000 -1,029,000 to -1,047,000 -1,234,000 to -1,271,000
Putnam -3,118,000 -3,601,000 to -3,677,000 -3,928,000 to -4,083,000
Randolph -1,608,000 -1,995,000 to -2,023,000 -2,098,000 to -2,163,000
Ripley -1,673,000 -2,084,000 to -2,168,000 -2,394,000 to -2,559,000
Rush -2,098,000 -2,678,000 to -2,724,000 -3,090,000 to -3,184,000
St. Joseph -56,598,000 -71,330,000 to -72,599,000 -86,746,000 to -89,292,000
Scott -1,946,000 -2,240,000 to -2,291,000 -2,468,000 to -2,571,000
Shelby -4,173,000 -5,227,000 to -5,380,000 -6,126,000 to -6,431,000
Spencer -2,802,000 -3,420,000 to -3,469,000 -3,864,000 to -3,965,000
Starke -2,960,000 -3,723,000 to -3,786,000 -4,577,000 to -4,704,000
Steuben -4,869,000 -6,203,000 to -6,310,000 -7,553,000 to -7,771,000
Sullivan -1,522,000 -2,048,000 to -2,078,000 -2,115,000 to -2,175,000
Switzerland -551,000 -725,000 to -739,000 -851,000 to -879,000
Tippecanoe -23,958,000 -30,843,000 to -31,442,000 -37,614,000 to -38,838,000
Tipton -1,717,000 -2,156,000 to -2,207,000 -2,429,000 to -2,532,000
Union -500,000 -656,000 to -675,000 -747,000 to -785,000
Vanderburgh -23,935,000 -25,151,000 to -25,834,000 -25,934,000 to -27,322,000
Vermillion -1,407,000 -1,934,000 to -1,969,000 -2,212,000 to -2,283,000
Vigo -9,784,000 -11,181,000 to -11,474,000 -12,169,000 to -12,766,000
Wabash -2,660,000 -2,895,000 to -2,951,000 -2,904,000 to -3,031,000
Warren -643,000 -833,000 to -842,000 -832,000 to -862,000
Warrick -9,953,000 -11,352,000 to -11,672,000 -12,592,000 to -13,243,000
Washington -2,421,000 -2,953,000 to -3,024,000 -3,323,000 to -3,463,000
Wayne -6,601,000 -7,340,000 to -7,507,000 -7,602,000 to -7,938,000
Wells -3,934,000 -4,623,000 to -4,703,000 -5,216,000 to -5,379,000
White -3,248,000 -4,323,000 to -4,387,000 -5,193,000 to -5,324,000
Whitley -4,752,000 -5,626,000 to -5,779,000 -6,414,000 to -6,725,000
Total -1,149,718,000 -1,368,966,000 to -1,400,519,000 -1,578,806,000 to -1,642,605,000
Note: Totals may not sum due to rounding.
SB 1 5