*SB0001.1*
February 12, 2025
SENATE BILL No. 1
_____
DIGEST OF SB 1 (Updated February 11, 2025 12:47 pm - DI 120)
Citations Affected: IC 3-10; IC 5-1; IC 6-1.1; IC 20-26; IC 20-46;
noncode.
Synopsis: Property tax relief. Adds provisions to authorize a county
fiscal body to adopt an ordinance to establish a property tax payment
deferral program (program). Provides that a qualified individual
participating in the program may defer the payment of part of the
property taxes that would otherwise be due on a homestead. Defines
"qualified individual". Provides that property taxes deferred under the
program are due after the occurrence of a deferral termination event.
Provides that the maximum amount of taxes that may be deferred
cumulatively year over year may not exceed $10,000. Amends a
capitalization rate percentage under the statewide agricultural land base
rate determination. Amends the percentage cap used to determine the
maximum levy growth quotient (MLGQ) to equal: (1) 0% in 2026; (2)
1% in 2027; and (3) 2% in 2028. Beginning with property taxes first
due and payable in 2029, amends the calculation of the MLGQ to
provide a new methodology. Specifies that the MLGQ calculation is
determined for the county and each civil taxing unit within the county
based on specified criteria. Provides the calculation of the MLGQ for
civil taxing units with territory in more than one county. Makes certain
changes to the qualification requirements and credit amount for the
over 65 circuit breaker credit and the property tax deduction for
persons 65 years of age or older. Makes certain changes to the
qualification requirements and deduction amount for the property tax
deduction for disabled veterans who are either totally disabled or at
least 62 years of age with a partial disability. Establishes a property tax
(Continued next page)
Effective: Upon passage; January 1, 2025 (retroactive); July 1, 2025;
January 1, 2026; January 1, 2029.
Holdman, Garten, Baldwin, Gaskill,
Rogers, Buchanan, Johnson T
January 14, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
February 11, 2025, amended, reported favorably — Do Pass.
SB 1—LS 7244/DI 120 Digest Continued
credit for an individual who is a first time home buyer for the first five
consecutive calender years in which the individual has property tax
liability for the individual's homestead. Specifies the amount of the
credit. Provides qualification requirements for the credit based on the
individual's annual income and the homestead's assessed value.
Provides that specified referendums may be placed on the ballot only
at a general election. Amends the ballot language for controlled project,
school operating, and school public safety referendums. Provides that
a school corporation may not adopt a resolution to place a controlled
project referendum on the ballot during the second calendar year after
the final calendar year in which a previously approved controlled
project referendum levy is imposed. Places restrictions on the issuance
of certain general obligation bonds. Provides that, notwithstanding any
growth in a political subdivision's assessed value in the previous year,
a political subdivision's ad valorem property tax levy shall not exceed
the ad valorem property tax levy for its last preceding annual budget,
unless the fiscal body of the political subdivision adopts an affirmative
tax rate and tax levy increase by ordinance following a separate public
hearing. Requires a resulting decrease in tax rates for each political
subdivision in which there was an increase in the political subdivision's
assessed value in the previous year, subject to any affirmative tax rate
and tax levy increase adopted by the fiscal body of the political
subdivision. Phases out the authority for the department of local
government finance to permit an excess tax levy that is based on
assessed value growth, related to a revenue shortfall, school
transportation costs, and other circumstances. Retains the provisions
that permit an excess tax levy if the civil taxing unit cannot carry out
its governmental functions and in the case of annexation. Creates a new
referendum for all political subdivisions (but places additional
restrictions on a school corporation's ability to use the referendum) to
use to place a referendum on the ballot to impose a referendum tax levy
for one year. Sets forth the procedures for holding the referendum.
Specifies that a referendum using the procedure may be placed only on
the ballot for a general election. Specifies the permissible uses of
money collected from the referendum levy. Requires the department of
local government finance 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 department.
SB 1—LS 7244/DI 120SB 1—LS 7244/DI 120 February 12, 2025
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 1
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 3-10-9-3, AS AMENDED BY P.L.225-2011,
2 SECTION 49, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 3. (a) Except as provided in subsection (b), if a
4 local public question must be certified to an election board by law, that
5 certification must occur no later than noon:
6 (1) seventy-four (74) days before a primary election if the public
7 question is to be placed on the primary or municipal primary
8 election ballot; or
9 (2) August 1 if the public question is to be placed on the general
10 or municipal election ballot.
11 (b) A referendum or local public question:
12 (1) under IC 20-46-1;
13 (2) under IC 20-46-9; or
14 (3) under IC 6-1.1-20 for controlled projects;
15 may be placed on the ballot only at a general election. Certification
16 of a local public question under this subsection must occur not
17 later than noon August 1.
SB 1—LS 7244/DI 120 2
1 SECTION 2. IC 5-1-14-17 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 17. (a) This section applies to a qualified
4 political subdivision.
5 (b) As used this section, "general obligation bond" means a
6 bond issued for a short term period of not more than five (5) years
7 and payable from property taxes for a purpose or project that is
8 not a controlled project (as defined in IC 6-1.1-20-1.1) for which
9 the bond is not required to be issued using the procedures in
10 IC 6-1.1-20.
11 (c) As used in this section, "qualified political subdivision"
12 means a county, city, town, township, or school corporation.
13 (d) Notwithstanding any other law, and except as provided in
14 subsection (e), if a qualified political subdivision issues new general
15 obligation bonds after December 31, 2024, and before May 1, 2025,
16 then at the expiration of those general obligation bonds, the
17 qualified political subdivision must wait two (2) years from that
18 date before the qualified political subdivision may issue general
19 obligation bonds.
20 (e) Subsection (d) shall not apply to a qualified political
21 subdivision in the case of a natural disaster, an accident, or another
22 unanticipated emergency as determined by the department of local
23 government finance.
24 SECTION 3. IC 6-1.1-4-4.5, AS AMENDED BY P.L.8-2022,
25 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JANUARY 1, 2026]: Sec. 4.5. (a) The department of local government
27 finance shall adopt rules establishing a system for annually adjusting
28 the assessed value of real property to account for changes in value in
29 those years since a reassessment under section 4.2 of this chapter for
30 the property last took effect.
31 (b) Subject to subsection (f), the system must be applied to adjust
32 assessed values beginning with the 2006 assessment date and each year
33 thereafter that is not a year in which a reassessment under section 4.2
34 of this chapter for the property becomes effective.
35 (c) The rules adopted under subsection (a) must include the
36 following characteristics in the system:
37 (1) Promote uniform and equal assessment of real property within
38 and across classifications.
39 (2) Require that assessing officials:
40 (A) reevaluate the factors that affect value;
41 (B) express the interactions of those factors mathematically;
42 (C) use mass appraisal techniques to estimate updated property
SB 1—LS 7244/DI 120 3
1 values within statistical measures of accuracy; and
2 (D) provide notice to taxpayers of an assessment increase that
3 results from the application of annual adjustments.
4 (3) Prescribe procedures that permit the application of the
5 adjustment percentages in an efficient manner by assessing
6 officials.
7 (d) The department of local government finance must review and
8 certify each annual adjustment determined under this section.
9 (e) For an assessment beginning after December 31, 2022,
10 agricultural improvements such as but not limited to barns, grain bins,
11 or silos on land assessed as agricultural shall not be adjusted using
12 factors, such as neighborhood delineation, that are appropriate for use
13 in adjusting residential, commercial, and industrial real property. Those
14 portions of agricultural parcels that include land and buildings not used
15 for an agricultural purpose, such as homes, homesites, and excess
16 residential land and commercial or industrial land and buildings, shall
17 be adjusted by the factor or factors developed for other similar property
18 within the geographic stratification. The residential portion of
19 agricultural properties shall be adjusted by the factors applied to
20 similar residential purposes.
21 (f) In making the annual determination of the base rate to satisfy the
22 requirement for an annual adjustment for each assessment date, the
23 department of local government finance shall not later than March 1 of
24 each year determine the base rate using the methodology reflected in
25 Table 2-18 of Book 1, Chapter 2 of the department of local government
26 finance's Real Property Assessment Guidelines (as in effect on January
27 1, 2005), except that the department shall adjust the methodology as
28 follows:
29 (1) Use a six (6) year rolling average adjusted under subdivision
30 (3) instead of a four (4) year rolling average.
31 (2) Use the data from the six (6) most recent years preceding the
32 year in which the assessment date occurs for which data is
33 available, before one (1) of those six (6) years is eliminated under
34 subdivision (3) when determining the rolling average.
35 (3) Eliminate in the calculation of the rolling average the year
36 among the six (6) years for which the highest market value in use
37 of agricultural land is determined.
38 (4) After determining a preliminary base rate that would apply for
39 the assessment date without applying the adjustment under this
40 subdivision, the department of local government finance shall
41 adjust the preliminary base rate as follows:
42 (A) If the preliminary base rate for the assessment date would
SB 1—LS 7244/DI 120 4
1 be at least ten percent (10%) greater than the final base rate
2 determined for the preceding assessment date, a capitalization
3 rate of eight percent (8%) nine percent (9%) shall be used to
4 determine the final base rate.
5 (B) If the preliminary base rate for the assessment date would
6 be at least ten percent (10%) less than the final base rate
7 determined for the preceding assessment date, a capitalization
8 rate of six percent (6%) shall be used to determine the final
9 base rate.
10 (C) If neither clause (A) nor clause (B) applies, a capitalization
11 rate of seven percent (7%) shall be used to determine the final
12 base rate.
13 (D) In the case of a market value in use for a year that is used
14 in the calculation of the six (6) year rolling average under
15 subdivision (1) for purposes of determining the base rate for
16 the assessment date:
17 (i) that market value in use shall be recalculated by using the
18 capitalization rate determined under clauses (A) through (C)
19 for the calculation of the base rate for the assessment date;
20 and
21 (ii) the market value in use recalculated under item (i) shall
22 be used in the calculation of the six (6) year rolling average
23 under subdivision (1).
24 (g) For assessment dates after December 31, 2009, an adjustment in
25 the assessed value of real property under this section shall be based on
26 the estimated true tax value of the property on the assessment date that
27 is the basis for taxes payable on that real property.
28 (h) The department shall release the department's annual
29 determination of the base rate on or before March 1 of each year.
30 SECTION 4. IC 6-1.1-10.2 IS ADDED TO THE INDIANA CODE
31 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
32 JANUARY 1, 2025 (RETROACTIVE)]:
33 Chapter 10.2. First Time Home Buyer's Property Tax Credit
34 Sec. 1. As used in this chapter, "first time home buyer" means
35 an individual who has not had an ownership interest in a home at
36 any time preceding the date on which the individual purchases a
37 home.
38 Sec. 2. As used in this chapter, "home" means an individual's
39 principal place of residence.
40 Sec. 3. As used in this chapter, "household income" means the
41 adjusted gross income (as defined in Section 62 of the Internal
42 Revenue Code) of an individual, or if applicable, the combined
SB 1—LS 7244/DI 120 5
1 adjusted gross income of the individual and the individual's spouse
2 if the spouse resides with the individual.
3 Sec. 4. This chapter applies to an individual:
4 (1) who is a first time home buyer;
5 (2) who qualifies for a standard deduction granted under
6 IC 6-1.1-12-37 for the individual's homestead property in the
7 current calendar year;
8 (3) who had household income not exceeding seventy-five
9 thousand dollars ($75,000) for the calendar year preceding by
10 two (2) years the calendar year in which property taxes are
11 first due and payable; and
12 (4) for which the assessed value of the individual's Indiana
13 real property is not more than two hundred fifty thousand
14 dollars ($250,000), and beginning for the January 1, 2026,
15 assessment date and each assessment date thereafter, the
16 amount shall be adjusted annually by a percentage equal to
17 the percentage increase, if any, as determined under section
18 10 of this chapter.
19 Sec. 5. (a) An individual who meets the qualification
20 requirements under section 4 of this chapter is entitled to a credit
21 under this chapter in the first calendar year in which the individual
22 has property tax liability for the individual's homestead.
23 (b) In addition, an individual who receive a credit for the
24 individual's homestead in the first year under subsection (a) shall
25 continue to be eligible, notwithstanding the provisions in section 4
26 of this chapter, to receive the credit under this chapter for up to
27 four (4) consecutive calendar years following that year in
28 subdivision (a) if the individual remains the owner of the
29 homestead for which a credit is received under subsection (a),
30 remains entitled to a standard deduction granted under
31 IC 6-1.1-12-37, and the home is not sold.
32 (c) An individual may not receive a credit under this chapter for
33 more than the first five (5) consecutive calender years in which the
34 individual has property tax liability for the individual's homestead.
35 Sec. 6. The amount of the credit in a calendar year is equal to
36 the lesser of:
37 (1) the property tax liability first due and payable on the
38 homestead property for the calendar year and before the
39 application of the credit under this chapter; or
40 (2) two thousand five hundred dollars ($2,500).
41 The total amount of credits a taxpayer may receive under this
42 chapter for all calendar years may not exceed twelve thousand five
SB 1—LS 7244/DI 120 6
1 hundred dollars ($12,500).
2 Sec. 7. The department of local government finance shall
3 prescribe an application for a credit under this chapter. The
4 application shall require a statement in affidavit form or require
5 verification under penalties of perjury. The application and
6 statement shall contain the following:
7 (1) The amount of gross income received by the individual and
8 all other persons in the individual's household during the
9 calendar year preceding by two (2) years the calendar year in
10 which property taxes are first due and payable.
11 (2) The individual's full name and complete residence address.
12 (3) The individual attests that the individual is a first time
13 home buyer and has not purchased a homestead property in
14 Indiana to date prior to the first year the credit is claimed.
15 (4) Any additional information which the department of local
16 government finance may require.
17 In order to substantiate an application, a county auditor may
18 require an applicant to submit income tax returns of each member
19 of a household.
20 Sec. 8. To claim a credit under this chapter, an individual must
21 file an application as prescribed by the department of local
22 government finance under section 7 of this chapter with the
23 auditor of the county in which the homestead property is located.
24 The individual must complete, date, and file the application before
25 January 15 of the calendar year in which the property taxes are
26 first due and payable. However, an individual who remains eligible
27 for the credit in a following year is not required to file an
28 application to apply for the credit in the following year.
29 Sec. 9. Subject to section 5 of this chapter, the auditor of each
30 county shall, in a particular year, apply a credit provided under
31 this chapter to each individual who received the credit in the
32 preceding year.
33 Sec. 10. As used in this section, "median home sale price" means
34 the median home sale price as determined each month for Indiana
35 by the department of local government finance using data from the
36 National Association of Realtors. The annual adjustment under
37 section 4(4) of this chapter shall be determined by the department
38 of local government finance and is equal to the year over year
39 change in:
40 (1) the year end average of the monthly median home sale
41 prices in Indiana statewide for the immediately preceding
42 calendar year before the assessment date; compared to
SB 1—LS 7244/DI 120 7
1 (2) the year end average of the monthly median home sale
2 prices in Indiana statewide for the calendar year preceding
3 the assessment date by two (2) years;
4 expressed as a percentage, but not less than zero (0). For purposes
5 of applying the annual adjustment under section (4)(4) of this
6 chapter, the annual percentage increase, if any, is applied to the
7 adjusted amount from the immediately preceding year.
8 SECTION 5. IC 6-1.1-12-9, AS AMENDED BY P.L.239-2023,
9 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 9. (a) An individual may
11 obtain a deduction from the assessed value of the individual's real
12 property, or mobile home or manufactured home which is not assessed
13 as real property, if:
14 (1) the individual is at least sixty-five (65) years of age on or
15 before December 31 of the calendar year preceding the year in
16 which the deduction is claimed;
17 (2) for assessment dates before January 1, 2020, the combined
18 adjusted gross income (as defined in Section 62 of the Internal
19 Revenue Code) of:
20 (A) the individual and the individual's spouse; or
21 (B) the individual and all other individuals with whom:
22 (i) the individual shares ownership; or
23 (ii) the individual is purchasing the property under a
24 contract;
25 as joint tenants or tenants in common;
26 for the calendar year preceding the year in which the deduction is
27 claimed did not exceed twenty-five thousand dollars ($25,000);
28 (3) for assessment dates after December 31, 2019:
29 (A) the individual had, in the case of an individual who filed
30 a single return, adjusted gross income (as defined in Section
31 62 of the Internal Revenue Code) not exceeding thirty
32 thousand dollars ($30,000), sixty thousand dollars ($60,000),
33 and beginning for the January 1, 2023, assessment date, and
34 each assessment date thereafter, adjusted annually by an
35 amount equal to the percentage cost of living increase applied
36 for Social Security benefits for the immediately preceding
37 calendar year;
38 (B) the individual had, in the case of an individual who filed
39 a joint income tax return with the individual's spouse,
40 combined adjusted gross income (as defined in Section 62 of
41 the Internal Revenue Code) not exceeding forty thousand
42 dollars ($40,000), seventy thousand dollars ($70,000), and
SB 1—LS 7244/DI 120 8
1 beginning for the January 1, 2023, assessment date, and each
2 assessment date thereafter, adjusted annually by an amount
3 equal to the percentage cost of living increase applied for
4 Social Security benefits for the immediately preceding
5 calendar year; or
6 (C) the combined adjusted gross income (as defined in Section
7 62 of the Internal Revenue Code) of the individual and all
8 other individuals with whom:
9 (i) the individual shares ownership; or
10 (ii) the individual is purchasing the property under a
11 contract;
12 as joint tenants or tenants in common did not exceed forty
13 thousand dollars ($40,000), seventy thousand dollars
14 ($70,000), and beginning for the January 1, 2023, assessment
15 date, and each assessment date thereafter, adjusted annually by
16 an amount equal to the percentage cost of living increase
17 applied for Social Security benefits for the immediately
18 preceding calendar year;
19 for the calendar year preceding by two (2) years the calendar year
20 in which the property taxes are first due and payable;
21 (4) the individual has owned the real property, mobile home, or
22 manufactured home for at least one (1) year before claiming the
23 deduction; or the individual has been buying the real property,
24 mobile home, or manufactured home under a contract that
25 provides that the individual is to pay the property taxes on the real
26 property, mobile home, or manufactured home for at least one (1)
27 year before claiming the deduction, and the contract or a
28 memorandum of the contract is recorded in the county recorder's
29 office;
30 (5) for assessment dates:
31 (A) before January 1, 2020, the individual and any individuals
32 covered by subdivision (2)(B) reside on the real property,
33 mobile home, or manufactured home; or
34 (B) after December 31, 2019, the individual and any
35 individuals covered by subdivision (3)(C) reside on the real
36 property, mobile home, or manufactured home;
37 (6) except as provided in subsection (i), the assessed value of the
38 real property, mobile home, or manufactured home does not
39 exceed:
40 (A) for assessment dates before January 1, 2025, two
41 hundred forty thousand dollars ($240,000); or
42 (B) for assessment dates after December 31, 2024, three
SB 1—LS 7244/DI 120 9
1 hundred thousand dollars ($300,000), and beginning for
2 the January 1, 2026, assessment date and each assessment
3 date thereafter, the amount shall be adjusted annually by
4 a percentage equal to the percentage increase, if any, as
5 determined under subsection (j);
6 (7) the individual receives no other property tax deduction for the
7 year in which the deduction is claimed, except the deductions
8 provided by sections 37 (for assessment dates after February 28,
9 2008) 37.5, and 38 of this chapter; and
10 (8) the person:
11 (A) owns the real property, mobile home, or manufactured
12 home; or
13 (B) is buying the real property, mobile home, or manufactured
14 home under contract;
15 on the date the statement required by section 10.1 of this chapter
16 is filed.
17 For purposes of applying the annual cost of living increases described
18 in subdivision (3)(A) through (3)(C), the annual percentage increase is
19 applied to the adjusted amount of income from the immediately
20 preceding year.
21 (b) Except as provided in subsection (h), in the case of real property,
22 an individual's deduction under this section equals the lesser of:
23 (1) one-half (1/2) of the assessed value of the real property; or
24 (2) fourteen thousand dollars ($14,000). twenty thousand dollars
25 ($20,000).
26 (c) Except as provided in subsection (h) and section 40.5 of this
27 chapter, in the case of a mobile home that is not assessed as real
28 property or a manufactured home which is not assessed as real
29 property, an individual's deduction under this section equals the lesser
30 of:
31 (1) one-half (1/2) of the assessed value of the mobile home or
32 manufactured home; or
33 (2) fourteen thousand dollars ($14,000). twenty thousand dollars
34 ($20,000).
35 (d) An individual may not be denied the deduction provided under
36 this section because the individual is absent from the real property,
37 mobile home, or manufactured home while in a nursing home or
38 hospital.
39 (e) For purposes of this section, if real property, a mobile home, or
40 a manufactured home is owned by:
41 (1) tenants by the entirety;
42 (2) joint tenants; or
SB 1—LS 7244/DI 120 10
1 (3) tenants in common;
2 only one (1) deduction may be allowed. However, the age requirement
3 is satisfied if any one (1) of the tenants is at least sixty-five (65) years
4 of age.
5 (f) A surviving spouse is entitled to the deduction provided by this
6 section if:
7 (1) the surviving spouse is at least sixty (60) years of age on or
8 before December 31 of the calendar year preceding the year in
9 which the deduction is claimed;
10 (2) the surviving spouse's deceased husband or wife was at least
11 sixty-five (65) years of age at the time of a death;
12 (3) the surviving spouse has not remarried; and
13 (4) the surviving spouse satisfies the requirements prescribed in
14 subsection (a)(2) through (a)(8).
15 (g) An individual who has sold real property to another person
16 under a contract that provides that the contract buyer is to pay the
17 property taxes on the real property may not claim the deduction
18 provided under this section against that real property.
19 (h) In the case of tenants covered by subsection (a)(2)(B) or
20 (a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
21 age, the deduction allowed under this section shall be reduced by an
22 amount equal to the deduction multiplied by a fraction. The numerator
23 of the fraction is the number of tenants who are not at least sixty-five
24 (65) years of age, and the denominator is the total number of tenants.
25 (i) For purposes of determining the assessed value of the real
26 property, mobile home, or manufactured home under subsection (a)(6)
27 for an individual who has received a deduction under this section in a
28 previous year, increases in assessed value that occur after the later of:
29 (1) December 31, 2019; or
30 (2) the first year that the individual has received the deduction;
31 are not considered unless the increase in assessed value is attributable
32 to substantial renovation or new improvements. Where there is an
33 increase in assessed value for purposes of the deduction under this
34 section, the assessor shall provide a report to the county auditor
35 describing the substantial renovation or new improvements, if any, that
36 were made to the property prior to the increase in assessed value.
37 (j) As used in this subsection, "median home sale price" means
38 the median home sale price as determined by the department of
39 local government finance for each month for Indiana using data
40 from the National Association of Realtors. The annual adjustment
41 under subsection (a)(6)(B) is equal to the year over year change in:
42 (1) the year end average of the monthly median home sale
SB 1—LS 7244/DI 120 11
1 prices in Indiana statewide for the immediately preceding
2 calendar year before the assessment date; compared to
3 (2) the year end average of the monthly median home sale
4 prices in Indiana statewide for the calendar year preceding
5 the assessment date by two (2) years;
6 expressed as a percentage, but not less than zero (0). For purposes
7 of applying the annual adjustment under subsection (a)(6)(B), the
8 annual percentage increase, if any, is applied to the adjusted
9 amount from the immediately preceding year.
10 SECTION 6. IC 6-1.1-12-14, AS AMENDED BY P.L.136-2024,
11 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 14. (a) Except as
13 provided in subsection (c) and except as provided in section 40.5 of
14 this chapter, an individual may have the sum of fourteen thousand
15 dollars ($14,000) of twenty thousand dollars ($20,000) deducted
16 from the assessed value of the real property, mobile home not assessed
17 as real property, or manufactured home not assessed as real property
18 that the individual owns (or the real property, mobile home not
19 assessed as real property, or manufactured home not assessed as real
20 property that the individual is buying under a contract that provides
21 that the individual is to pay property taxes on the real property, mobile
22 home, or manufactured home if the contract or a memorandum of the
23 contract is recorded in the county recorder's office) if:
24 (1) the individual served in the military or naval forces of the
25 United States for at least ninety (90) days;
26 (2) the individual received an honorable discharge;
27 (3) the individual either:
28 (A) has a total disability; or
29 (B) is at least sixty-two (62) years old and has a disability of at
30 least ten percent (10%);
31 (4) the individual's disability is evidenced by:
32 (A) a pension certificate or an award of compensation issued
33 by the United States Department of Veterans Affairs; or
34 (B) a certificate of eligibility issued to the individual by the
35 Indiana department of veterans' affairs after the Indiana
36 department of veterans' affairs has determined that the
37 individual's disability qualifies the individual to receive a
38 deduction under this section; and
39 (5) the individual:
40 (A) owns the real property, mobile home, or manufactured
41 home; or
42 (B) is buying the real property, mobile home, or manufactured
SB 1—LS 7244/DI 120 12
1 home under contract;
2 on the date the statement required by section 15 of this chapter is
3 filed.
4 (b) Except as provided in subsections (c) and (d), the surviving
5 spouse of an individual may receive the deduction provided by this
6 section if:
7 (1) the individual satisfied the requirements of subsection (a)(1)
8 through (a)(4) at the time of death; or
9 (2) the individual:
10 (A) was killed in action;
11 (B) died while serving on active duty in the military or naval
12 forces of the United States; or
13 (C) died while performing inactive duty training in the military
14 or naval forces of the United States; and
15 the surviving spouse satisfies the requirement of subsection (a)(5) at
16 the time the deduction statement is filed. The surviving spouse is
17 entitled to the deduction regardless of whether the property for which
18 the deduction is claimed was owned by the deceased veteran or the
19 surviving spouse before the deceased veteran's death.
20 (c) Except as provided in subsection (f), no one is entitled to the
21 deduction provided by this section if the assessed value of the
22 individual's Indiana real property, Indiana mobile home not assessed as
23 real property, and Indiana manufactured home not assessed as real
24 property, as shown by the tax duplicate, exceeds the assessed value
25 limit specified in subsection (d).
26 (d) Except as provided in subsection (f), for the:
27 (1) January 1, 2017, January 1, 2018, and January 1, 2019,
28 assessment dates, the assessed value limit for purposes of
29 subsection (c) is one hundred seventy-five thousand dollars
30 ($175,000);
31 (2) January 1, 2020, January 1, 2021, January 1, 2022, and
32 January 1, 2023, assessment dates, the assessed value limit for
33 purposes of subsection (c) is two hundred thousand dollars
34 ($200,000); and
35 (3) January 1, 2024, assessment date, and for each assessment
36 date thereafter, the assessed value limit for purposes of subsection
37 (c) is two hundred forty thousand dollars ($240,000); and
38 (4) January 1, 2025, assessment date, the assessed value limit
39 for purposes of subsection (c) is three hundred thousand
40 dollars ($300,000), and beginning for the January 1, 2026,
41 assessment date and each assessment date thereafter, the
42 amount shall be adjusted annually by a percentage equal to
SB 1—LS 7244/DI 120 13
1 the percentage increase, if any, as determined under
2 subsection (g).
3 (e) An individual who has sold real property, a mobile home not
4 assessed as real property, or a manufactured home not assessed as real
5 property to another person under a contract that provides that the
6 contract buyer is to pay the property taxes on the real property, mobile
7 home, or manufactured home may not claim the deduction provided
8 under this section against that real property, mobile home, or
9 manufactured home.
10 (f) For purposes of determining the assessed value of the real
11 property, mobile home, or manufactured home under subsection (d) for
12 an individual who has received a deduction under this section in a
13 previous year, increases in assessed value that occur after the later of:
14 (1) December 31, 2019; or
15 (2) the first year that the individual has received the deduction;
16 are not considered unless the increase in assessed value is attributable
17 to substantial renovation or new improvements. Where there is an
18 increase in assessed value for purposes of the deduction under this
19 section, the assessor shall provide a report to the county auditor
20 describing the substantial renovation or new improvements, if any, that
21 were made to the property prior to the increase in assessed value.
22 (g) As used in this subsection, "median home sale price" means
23 the median home sale price as determined by the department of
24 local government finance for each month for Indiana using data
25 from the National Association of Realtors. The annual adjustment
26 under subsection (d)(4) is equal to the year over year change in:
27 (1) the year end average of the monthly median home sale
28 prices in Indiana statewide for the immediately preceding
29 calendar year before the assessment date; compared to
30 (2) the year end average of the monthly median home sale
31 prices in Indiana statewide for the calendar year preceding
32 the assessment date by two (2) years;
33 expressed as a percentage, but not less than zero (0). For purposes
34 of applying the annual adjustment under subsection (d)(4), the
35 annual percentage increase, if any, is applied to the adjusted
36 amount from the immediately preceding year.
37 SECTION 7. IC 6-1.1-17-3, AS AMENDED BY P.L.220-2021,
38 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JANUARY 1, 2029]: Sec. 3. (a) The proper officers of a political
40 subdivision shall formulate its estimated budget and its proposed tax
41 rate and tax levy on the form prescribed by the department of local
42 government finance and approved by the state board of accounts. In
SB 1—LS 7244/DI 120 14
1 formulating a political subdivision's estimated budget under this
2 section, the proper officers of the political subdivision must consider
3 the net property tax revenue that will be collected by the political
4 subdivision during the ensuing year, after taking into account the
5 estimate by the department of local government finance under
6 IC 6-1.1-20.6-11.1 of the amount by which the political subdivision's
7 distribution of property taxes will be reduced by credits under
8 IC 6-1.1-20.6-9.5 in the ensuing year, after taking into account the
9 estimate by the department of local government finance under section
10 0.7 of this chapter of the maximum amount of net property tax revenue
11 and miscellaneous revenue that the political subdivision will receive in
12 the ensuing year, and after taking into account all payments for debt
13 service obligations that are to be made by the political subdivision
14 during the ensuing year. The political subdivision or appropriate fiscal
15 body, if the political subdivision is subject to section 20 of this chapter,
16 shall submit the following information to the department's computer
17 gateway:
18 (1) The estimated budget.
19 (2) The estimated maximum permissible levy, as provided by the
20 department under IC 6-1.1-18.5-24.
21 (3) The current and proposed tax levies of each fund.
22 (4) The percentage change between the current and proposed tax
23 levies of each fund.
24 (5) The amount by which the political subdivision's distribution
25 of property taxes may be reduced by credits granted under
26 IC 6-1.1-20.6, as estimated by the department of local government
27 finance under IC 6-1.1-20.6-11.1.
28 (6) The amounts of excessive levy appeals to be requested.
29 (7) The time and place at which the political subdivision or
30 appropriate fiscal body will hold a public hearing on the items
31 described in subdivisions (1) through (6).
32 (8) The amount of any increase in the tax rate and tax levies
33 of the political subdivision in an ordinance adopted under
34 section 23 of this chapter.
35 (8) (9) The time and place at which the political subdivision or
36 appropriate fiscal body will meet to fix the budget, tax rate, and
37 levy under section 5 of this chapter.
38 (9) (10) The date, time, and place of the final adoption of the
39 budget, tax rate, and levy under section 5 of this chapter.
40 Except as provided in section 5.6(b) of this chapter, the political
41 subdivision or appropriate fiscal body shall submit this information to
42 the department's computer gateway at least ten (10) days before the
SB 1—LS 7244/DI 120 15
1 public hearing required by this subsection in the manner prescribed by
2 the department. If the date, time, or place of the final adoption
3 subsequently changes, the political subdivision shall update the
4 information submitted to the department's computer gateway. The
5 department shall make this information available to taxpayers, at least
6 ten (10) days before the public hearing, through its computer gateway
7 and provide a telephone number through which taxpayers may request
8 mailed copies of a political subdivision's information under this
9 subsection. The department's computer gateway must allow a taxpayer
10 to search for the information under this subsection by the taxpayer's
11 address. The department shall review only the submission to the
12 department's computer gateway for compliance with this section.
13 (b) The board of directors of a solid waste management district
14 established under IC 13-21 or IC 13-9.5-2 (before its repeal) may
15 conduct the public hearing required under subsection (a):
16 (1) in any county of the solid waste management district; and
17 (2) in accordance with the annual notice of meetings published
18 under IC 13-21-5-2.
19 (c) The trustee of each township in the county shall estimate the
20 amount necessary to meet the cost of township assistance in the
21 township for the ensuing calendar year. The township board shall,
22 subject to section 23 of this chapter, adopt with the township budget
23 a tax rate sufficient to meet the estimated cost of township assistance.
24 The taxes collected as a result of the tax rate adopted under this
25 subsection are credited to the township assistance fund.
26 (d) A political subdivision for which any of the information under
27 subsection (a) is not submitted to the department's computer gateway
28 in the manner prescribed by the department shall have its most recent
29 annual appropriations and annual tax levy continued for the ensuing
30 budget year.
31 (e) If a political subdivision or appropriate fiscal body timely
32 submits the information under subsection (a) but subsequently
33 discovers the information contains an error, the political subdivision or
34 appropriate fiscal body may submit amended information to the
35 department's computer gateway. However, submission of an
36 amendment to information described in subsection (a)(1) through (a)(7)
37 must occur at least ten (10) days before the public hearing held under
38 subsection (a), and submission of an amendment to information
39 described in subsection (a)(8) through (a)(9) must occur at least
40 twenty-four (24) hours before the time in which the meeting to fix the
41 budget, tax rate, and levy was originally advertised to commence.
42 (f) Each year, the governing body of a school corporation that
SB 1—LS 7244/DI 120 16
1 imposes property taxes to pay debt service on bonds or lease rentals on
2 a lease for a controlled project under IC 6-1.1-20, property taxes under
3 an operating referendum tax levy under IC 20-46-1, or property taxes
4 under a school safety referendum tax levy under IC 20-46-9, shall
5 submit the following information at least ten (10) days before the
6 public hearing required by subsection (a) in the manner prescribed by
7 the department:
8 (1) the purposes specified in the public question submitted to the
9 voters or any revenue spending plans adopted under
10 IC 6-1.1-20-13, IC 20-46-1-8, or IC 20-46-9-6 for:
11 (A) debt service on bonds or lease rentals on a lease for a
12 controlled project under IC 6-1.1-20;
13 (B) an operating referendum tax levy approved by the voters
14 of the school corporation under IC 20-46-1; or
15 (C) a school safety referendum tax levy approved by the voters
16 of the school corporation under IC 20-46-9;
17 as applicable; and
18 (2) the debt service levy fund, operating referendum tax levy
19 fund, or school safety referendum tax levy fund of the school
20 corporation, whichever is applicable;
21 to show whether the school corporation is using revenue collected from
22 the referendum tax levy in the amounts and for the purposes
23 established in the purposes specified in the public question submitted
24 to the voters or the revenue spending plan, as applicable. The
25 department shall make this information available to taxpayers at least
26 ten (10) days before the public hearing.
27 SECTION 8. IC 6-1.1-17-16, AS AMENDED BY P.L.9-2024,
28 SECTION 169, IS AMENDED TO READ AS FOLLOWS
29 [EFFECTIVE JANUARY 1, 2029]: Sec. 16. (a) The department of
30 local government finance shall certify the tax rates and tax levies for all
31 funds of political subdivisions subject to the department of local
32 government finance's review.
33 (b) For a fund of a political subdivision subject to levy limits under
34 IC 6-1.1-18.5-3, the department of local government finance shall
35 calculate and certify the allowable budget of the fund if the political
36 subdivision adopts a tax levy that exceeds the estimated maximum levy
37 limits as provided by the department of local government finance under
38 IC 6-1.1-18.5-24.
39 (c) For a fund of a political subdivision subject to levy limits under
40 IC 6-1.1-18.5-3 and for which the political subdivision adopts a tax
41 levy that is not more than the levy limits under IC 6-1.1-18.5-3, the
42 department of local government finance shall review the fund to ensure
SB 1—LS 7244/DI 120 17
1 the adopted budget is fundable based on the unit's adopted tax levy and
2 estimates of available revenues. If the adopted budget is fundable, the
3 department of local government finance shall use the adopted budget
4 as the approved appropriation for the fund for the budget year. As
5 needed, the political subdivision may complete the additional
6 appropriation process through IC 6-1.1-18-5 for these funds during the
7 budget year.
8 (d) For a fund of the political subdivision subject to levy limits
9 under IC 6-1.1-18.5-3 and for which the political subdivision adopts a
10 tax levy that is not more than the levy limits under IC 6-1.1-18.5-3, if
11 the department of local government finance has determined the adopted
12 budget is not fundable based on the unit's adopted tax levy and
13 estimates of available revenues, the department of local government
14 finance shall calculate and certify the allowable budget that is fundable
15 based on the adopted tax levy and the department's estimates of
16 available revenues.
17 (e) For all other funds of a political subdivision not described in
18 subsections (b), (c), and (d), the department of local government
19 finance shall certify a budget for the fund.
20 (f) Except as provided in section 16.1 of this chapter, the department
21 of local government finance is not required to hold a public hearing
22 before the department of local government finance reviews, revises,
23 reduces, or increases a political subdivision's budget by fund, tax rate,
24 or tax levy under this section.
25 (g) Except as provided in subsection (l), IC 20-46, or IC 6-1.1-18.5,
26 the department of local government finance may not increase a political
27 subdivision's budget by fund, tax rate, or tax levy to an amount which
28 exceeds the amount originally fixed by the political subdivision.
29 However, if the department of local government finance determines
30 that IC 5-3-1-2.3(b) applies to the tax rate, tax levy, or budget of the
31 political subdivision, the maximum amount by which the department
32 may increase the tax rate, tax levy, or budget is the amount originally
33 fixed by the political subdivision, and not the amount that was
34 incorrectly published or omitted in the notice described in
35 IC 5-3-1-2.3(b). The department of local government finance shall give
36 the political subdivision notification electronically in the manner
37 prescribed by the department of local government finance specifying
38 any revision, reduction, or increase the department proposes in a
39 political subdivision's tax levy or tax rate. The political subdivision has
40 ten (10) calendar days from the date the political subdivision receives
41 the notice to provide a response electronically in the manner prescribed
42 by the department of local government finance. The response may
SB 1—LS 7244/DI 120 18
1 include budget reductions, reallocation of levies, a revision in the
2 amount of miscellaneous revenues, and further review of any other
3 item about which, in the view of the political subdivision, the
4 department is in error. The department of local government finance
5 shall consider the adjustments as specified in the political subdivision's
6 response if the response is provided as required by this subsection and
7 shall deliver a final decision to the political subdivision. The
8 department of local government finance may not consider any
9 adjustments that are suggested by the political subdivision after the
10 expiration of the ten (10) day period allowed for the political
11 subdivision's response.
12 (h) The department of local government finance may not approve a
13 levy for lease payments by a city, town, county, library, or school
14 corporation if the lease payments are payable to a building corporation
15 for use by the building corporation for debt service on bonds and if:
16 (1) no bonds of the building corporation are outstanding; or
17 (2) the building corporation has enough legally available funds on
18 hand to redeem all outstanding bonds payable from the particular
19 lease rental levy requested.
20 (i) The department of local government finance shall certify its
21 action to:
22 (1) the county auditor;
23 (2) if the budget and levy of the political subdivision are being
24 continued:
25 (A) the state board of accounts;
26 (B) the state comptroller; and
27 (C) the department of state revenue;
28 (3) the political subdivision if the department acts pursuant to an
29 appeal initiated by the political subdivision; and
30 (4) a taxpayer that owns property that represents at least ten
31 percent (10%) of the taxable assessed valuation in the political
32 subdivision.
33 (j) The following may petition for judicial review of the final
34 determination of the department of local government finance under
35 subsection (i):
36 (1) If the department acts under an appeal initiated by a political
37 subdivision, the political subdivision.
38 (2) A taxpayer that owns property that represents at least ten
39 percent (10%) of the taxable assessed valuation in the political
40 subdivision.
41 The petition must be filed in the tax court not more than forty-five (45)
42 days after the department certifies its action under subsection (i).
SB 1—LS 7244/DI 120 19
1 (k) The department of local government finance is expressly
2 directed to complete the duties assigned to it under this section as
3 follows:
4 (1) Not later than December 31 of the year preceding that budget
5 year, unless subdivision (2) applies.
6 (2) Not later than January 15 of the budget year if any of the
7 following are true:
8 (A) A taxing unit in a county intends to issue debt after
9 December 1 in the year preceding the budget year and has
10 indicated its intent to issue debt after December 1 in the year
11 preceding the budget year as specified in section 5 of this
12 chapter.
13 (B) A taxing unit intends to file a shortfall appeal under
14 IC 6-1.1-18.5-16 and has indicated its intent to file a shortfall
15 appeal as specified in section 5 of this chapter.
16 (C) The deadline for a city in the county to fix the budget, tax
17 rate, and tax levy has been extended, in accordance with
18 section 5.2 of this chapter, due to the executive's veto of the
19 ordinance fixing the budget, tax rate, and tax levy.
20 (l) Subject to the provisions of all applicable statutes, and
21 notwithstanding IC 6-1.1-18-1, the department of local government
22 finance shall, unless the department finds extenuating circumstances,
23 increase a political subdivision's tax levy to an amount that exceeds the
24 amount originally advertised or adopted by the political subdivision if:
25 (1) the increase is requested in writing by the officers of the
26 political subdivision;
27 (2) the request includes:
28 (A) the corrected budget, tax rate, or levy, as applicable; and
29 (B) the time and place of the meeting described in subdivision
30 (4);
31 (3) the political subdivision publishes the requested increase on
32 the department's advertising website;
33 (4) the political subdivision adopts the needed changes to its
34 budget, tax levy, or rate in a public meeting of the governing
35 body; and
36 (5) notice is given to the county fiscal body of the department's
37 correction.
38 The political subdivision shall publish notice of the meeting described
39 in subdivision (4) on the Indiana transparency website in the manner
40 prescribed by the department not later than forty-eight (48) hours
41 (excluding weekends and holidays) before the meeting. If the
42 department increases a levy beyond what was advertised or adopted
SB 1—LS 7244/DI 120 20
1 under this subsection, it shall, unless the department finds extenuating
2 circumstances, reduce the certified levy affected below the maximum
3 allowable levy by the lesser of five percent (5%) of the difference
4 between the advertised or adopted levy and the increased levy, or one
5 hundred thousand dollars ($100,000).
6 (m) If the department of local government finance has
7 determined that the proposed tax levy for a political subdivision's
8 budget exceeds the permissible tax levy for the political subdivision
9 under section 23 of this chapter, the department of local
10 government finance shall calculate and certify the allowable tax
11 levy and tax rate for the political subdivision based on the
12 provisions in section 23 of this chapter.
13 SECTION 9. IC 6-1.1-17-17, AS AMENDED BY P.L.146-2008,
14 SECTION 161, IS AMENDED TO READ AS FOLLOWS
15 [EFFECTIVE JANUARY 1, 2029]: Sec. 17. Subject to the limitations
16 contained in IC 6-1.1-18.5 and IC 20-46, and notwithstanding section
17 23 of this chapter, the department of local government finance may at
18 any time increase the tax rate and tax levy of a political subdivision for
19 the following reasons:
20 (1) To pay the principal or interest upon a funding, refunding, or
21 judgment funding obligation of a political subdivision.
22 (2) To pay the interest or principal upon an outstanding obligation
23 of the political subdivision.
24 (3) To pay a judgment rendered against the political subdivision.
25 (4) To pay lease rentals that have become an obligation of the
26 political subdivision under IC 20-47-2 or IC 20-47-3.
27 SECTION 10. IC 6-1.1-17-23 IS ADDED TO THE INDIANA
28 CODE AS A NEW SECTION TO READ AS FOLLOWS
29 [EFFECTIVE JANUARY 1, 2029]: Sec. 23. (a) This section applies
30 beginning after December 31, 2025, to the formulation and
31 adoption of a budget, tax rate, and tax levy under this chapter.
32 (b) Notwithstanding any growth in a political subdivision's
33 assessed value in the previous year, the ad valorem property tax
34 levy for the budget of a political subdivision shall not exceed the ad
35 valorem property tax levy for its last preceding annual budget,
36 except as provided in subsections (c) and (d).
37 (c) The fiscal body of a political subdivision may by ordinance
38 authorize the proper officers of the political subdivision to
39 formulate and submit a budget, tax rate, and tax levy under section
40 3 of this chapter that exceed the ad valorem property tax levy
41 restriction in subsection (b), subject to all other limits under this
42 article, if the following conditions are met:
SB 1—LS 7244/DI 120 21
1 (1) The fiscal body of the political subdivision must hold a
2 public hearing at which the only item on the agenda is the
3 proposal to adopt an ordinance under this subsection. The
4 hearing shall be conducted in accordance with IC 5-14-1.5,
5 and notice of the hearing shall be published in accordance
6 with IC 5-3-1.
7 (2) After conducting a public hearing under subdivision (1)
8 and subject to subdivision (3), the fiscal body of the political
9 subdivision may adopt an ordinance under this subsection,
10 which must contain:
11 (A) a general statement of the reasons for the tax levy and
12 tax rate increase;
13 (B) the dollar amount of the tax levy increase; and
14 (C) the percentage increase in the tax rate from the
15 previous year.
16 (3) An ordinance may not be adopted under this section after
17 the date that is fifteen (15) days before the public hearing
18 under section 3 of this chapter.
19 (d) If an ordinance is adopted by the fiscal body of a political
20 subdivision under subsection (c), the limitation in subsection (b)
21 shall not apply and instead the ad valorem property tax levy for
22 the budget of the political subdivision shall not exceed the sum of:
23 (1) the ad valorem property tax levy for the political
24 subdivision's last preceding annual budget; plus
25 (2) the additional ad valorem property tax levy authorized in
26 the ordinance adopted by the fiscal body under subsection (c);
27 subject to all other limits under this article.
28 (e) The provisions of this section shall be applied to decrease the
29 tax rate of each political subdivision in which there was an increase
30 in the political subdivision's assessed value in the previous year,
31 subject to subsections (c) and (d).
32 SECTION 11. IC 6-1.1-18.5-1, AS AMENDED BY P.L.136-2024,
33 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 UPON PASSAGE]: Sec. 1. As used in The following definitions
35 apply throughout this chapter:
36 (1) "Ad valorem property tax levy for an ensuing calendar year"
37 means the total property taxes imposed by a civil taxing unit for
38 current property taxes collectible in that ensuing calendar year.
39 However, if a township elects to establish both a township
40 firefighting levy and a township emergency services levy under
41 IC 36-8-13-4(c)(2), the township firefighting levy and township
42 emergency services levy shall be combined and considered as a
SB 1—LS 7244/DI 120 22
1 single levy for purposes of this chapter.
2 (2) "Civil taxing unit" means any taxing unit, except including a
3 school corporation.
4 (3) "Maximum permissible ad valorem property tax levy for the
5 preceding calendar year" means, for purposes of determining a
6 maximum permissible ad valorem property tax levy under section
7 3 of this chapter for property taxes imposed for an assessment
8 date after January 15, 2011, the civil taxing unit's maximum
9 permissible ad valorem property tax levy for the calendar year
10 immediately preceding the ensuing calendar year, as that levy was
11 determined under section 3 of this chapter (regardless of whether
12 the taxing unit imposed the entire amount of the maximum
13 permissible ad valorem property tax levy in the immediately
14 preceding year).
15 (4) "Taxable property" means all tangible property that is subject
16 to the tax imposed by this article and is not exempt from the tax
17 under IC 6-1.1-10 or any other law. For purposes of sections 2 and
18 3 of this chapter, the term "taxable property" is further defined in
19 section 6 of this chapter.
20 SECTION 12. IC 6-1.1-18.5-2, AS AMENDED BY P.L.239-2023,
21 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
22 UPON PASSAGE]: Sec. 2. (a) As used in The following definitions
23 apply throughout this section:
24 (1) "County nonfarm personal income" means the estimate of
25 total nonfarm personal income for each county in Indiana in
26 a calendar year, as computed by the federal Bureau of
27 Economic Analysis using any actual data for the calendar
28 year and any estimated data determined appropriate by the
29 federal Bureau of Economic Analysis.
30 (2) "Indiana average annual pay in total for all industries and
31 all establishment sizes" means the estimate of total average
32 annual pay for those industries and establishments in Indiana
33 in a calendar year as computed by the federal Bureau of
34 Labor Statistics using any actual data for the calendar year
35 and any estimated data determined appropriate by the federal
36 Bureau of Labor Statistics.
37 (3) "Indiana nonfarm personal income" means the estimate of
38 total nonfarm personal income for Indiana in a calendar year as
39 computed by the federal Bureau of Economic Analysis using any
40 actual data for the calendar year and any estimated data
41 determined appropriate by the federal Bureau of Economic
42 Analysis.
SB 1—LS 7244/DI 120 23
1 (4) "Indiana personal consumption expenditures" means the
2 estimate of total personal consumption expenditures for
3 Indiana in a calendar year as computed by the federal Bureau
4 of Economic Analysis using any actual data for the calendar
5 year and any estimated data determined appropriate by the
6 federal Bureau of Economic Analysis.
7 (5) "United States nonfarm business labor productivity
8 (output per hour)" means the estimate of total nonfarm
9 business labor productivity for the United States in a calendar
10 year as computed by the federal Bureau of Labor Statistics
11 using any actual data for the calendar year and any estimated
12 data determined appropriate by the federal Bureau of Labor
13 Statistics.
14 (b) Except as provided in subsections (c) and (e), (g), for purposes
15 of determining a civil taxing unit's maximum permissible ad valorem
16 property tax levy for an ensuing calendar year, ending before January
17 1, 2029, the civil taxing unit shall use the maximum levy growth
18 quotient determined in the last STEP of the following STEPS:
19 STEP ONE: For each of the six (6) calendar years immediately
20 preceding the year in which a budget is adopted under
21 IC 6-1.1-17-5 for the ensuing calendar year, divide the Indiana
22 nonfarm personal income for the calendar year by the Indiana
23 nonfarm personal income for the calendar year immediately
24 preceding that calendar year, rounding to the nearest
25 one-thousandth (0.001).
26 STEP TWO: Determine the sum of the STEP ONE results.
27 STEP THREE: Divide the STEP TWO result by six (6), rounding
28 to the nearest one-thousandth (0.001).
29 STEP FOUR: Determine the lesser of the following:
30 (A) The STEP THREE quotient.
31 (B) The following:
32 (i) For taxes first due and payable before 2026, one and
33 six-hundredths (1.06).
34 (ii) For taxes first due and payable in 2026, one and zero
35 hundredths (1.00).
36 (iii) For taxes first due and payable in 2027, one and
37 one-hundredths (1.01).
38 (iv) For taxes first due and payable in 2028, one and
39 two-hundredths (1.02).
40 This subsection expires December 31, 2028.
41 (c) Except as provided in subsection (f), (h), a school corporation
42 shall use for its operations fund maximum levy calculation under
SB 1—LS 7244/DI 120 24
1 IC 20-46-8-1 the maximum levy growth quotient determined in the last
2 STEP of the following STEPS:
3 STEP ONE: Determine for each school corporation, the average
4 annual growth in net assessed value using the three (3) calendar
5 years immediately preceding the year in which a budget is
6 adopted under IC 6-1.1-17-5 for the ensuing calendar year.
7 STEP TWO: Determine the greater of:
8 (A) zero (0); or
9 (B) the STEP ONE amount minus the sum of:
10 (i) the maximum levy growth quotient determined under
11 subsection (b) minus one (1); plus
12 (ii) two-hundredths (0.02).
13 STEP THREE: Determine the lesser of:
14 (A) the STEP TWO amount; or
15 (B) four-hundredths (0.04).
16 STEP FOUR: Determine the sum of:
17 (A) the STEP THREE amount; plus
18 (B) the maximum levy growth quotient determined under
19 subsection (b).
20 STEP FIVE: Determine the greater of:
21 (A) the STEP FOUR amount; or
22 (B) the maximum levy growth quotient determined under
23 subsection (b).
24 This subsection expires December 31, 2025.
25 (d) For purposes of determining a civil taxing unit's maximum
26 permissible ad valorem property tax levy for an ensuing calendar
27 year, for property taxes first due and payable in each calendar
28 year beginning after December 31, 2028, the civil taxing unit shall
29 use the maximum levy growth quotient determined in the last
30 STEP of the following STEPS:
31 STEP ONE: For each of the six (6) calendar years
32 immediately preceding the year in which a budget is adopted
33 under IC 6-1.1-17-5 for the ensuing calendar year, determine
34 separately each of the following components:
35 (A) Divide the Indiana personal consumption expenditures
36 for the calendar year by the Indiana personal consumption
37 expenditures for the calendar year immediately preceding
38 that calendar year, rounding to the nearest one-thousandth
39 (0.001).
40 (B) Divide the Indiana average annual pay in total for all
41 industries and all establishment sizes for the calendar year
42 by the Indiana average annual pay in total for all
SB 1—LS 7244/DI 120 25
1 industries and all establishment sizes for the calendar year
2 immediately preceding that calendar year, rounding to the
3 nearest one-thousandth (0.001).
4 (C) Divide the United States nonfarm business labor
5 productivity (output per hour) for the calendar year by the
6 United States nonfarm business labor productivity (output
7 per hour) for the calendar year immediately preceding that
8 calendar year, rounding to the nearest one-thousandth
9 (0.001).
10 (D) Divide the county nonfarm personal income for each
11 county for the calendar year by the county nonfarm
12 personal income for each county for the calendar year
13 immediately preceding that calendar year, rounding to the
14 nearest one-thousandth (0.001).
15 STEP TWO: Determine separately each of the following
16 components:
17 (A) The sum of the result of clause (A) of STEP ONE.
18 (B) The sum of the result of clause (B) of STEP ONE.
19 (C) The sum of the result of clause (C) of STEP ONE.
20 (D) The sum of the result of clause (D) of STEP ONE.
21 STEP THREE: Divide each of the following:
22 (A) The result of clause (A) of STEP TWO by six (6),
23 rounding to the nearest one-thousandth (0.001).
24 (B) The result of clause (B) of STEP TWO by six (6),
25 rounding to the nearest one-thousandth (0.001).
26 (C) The result of clause (C) of STEP TWO by six (6),
27 rounding to the nearest one-thousandth (0.001).
28 (D) The result of clause (D) of STEP TWO by six (6),
29 rounding to the nearest one-thousandth (0.001).
30 STEP FOUR: Determine the product of each of the following:
31 (A) Multiply the result determined under clause (A) of
32 STEP THREE by two-tenths (0.2).
33 (B) Multiply the result determined under clause (B) of
34 STEP THREE by three-tenths (0.3).
35 (C) Multiply the result determined under clause (C) of
36 STEP THREE by three-tenths (0.3).
37 (D) Multiply the result determined under clause (D) of
38 STEP THREE by two-tenths (0.2).
39 STEP FIVE: Determine the sum of the STEP FOUR results,
40 rounding to nearest one-thousandth (0.001).
41 The maximum levy growth quotient determined under this
42 subsection is the maximum levy growth quotient for the county and
SB 1—LS 7244/DI 120 26
1 each civil taxing unit within the county.
2 (d) (e) For property taxes first due and payable in a calendar
3 year ending before January 1, 2029, the budget agency shall provide
4 the maximum levy growth quotient for the ensuing year to civil taxing
5 units, school corporations, and the department of local government
6 finance before July 1 of each year.
7 (f) For property taxes first due and payable in each calendar
year ending after December 31, 8 2028, the budget agency shall
9 provide:
10 (1) the maximum levy growth quotient for each county for the
11 ensuing year to civil taxing units and the department of local
12 government finance; and
13 (2) in the case of a civil taxing unit that contains territory in
14 more than one (1) county, the maximum levy growth quotient,
15 using the average of the maximum levy growth quotient for
16 each county in which the civil taxing unit has territory, for the
17 ensuing year to a civil taxing unit and the department of local
18 government finance;
19 before July 1, 2028, and each July 1 thereafter. Additionally,
20 before July 1, 2028, and each July 1 thereafter, the budget agency
21 shall, using each county's maximum levy growth quotient, calculate
22 and provide to the department of local government finance the
23 statewide minimum, statewide maximum, statewide median, and
24 statewide average.
25 (e) (g) This subsection applies only for purposes of determining the
26 maximum levy growth quotient to be used in determining a civil taxing
27 unit's maximum permissible ad valorem property tax levy in calendar
28 years 2024 and 2025. For purposes of determining the maximum levy
29 growth quotient in calendar years 2024 and 2025, instead of the result
30 determined in the last STEP in subsection (b), the maximum levy
31 growth quotient is determined in the last STEP of the following
32 STEPS:
33 STEP ONE: Determine the result of STEP FOUR of subsection
34 (b), calculated as if this subsection was not in effect.
35 STEP TWO: Subtract one (1) from the STEP ONE result.
36 STEP THREE: Multiply the STEP TWO result by eight-tenths
37 (0.8).
38 STEP FOUR: Add one (1) to the STEP THREE result.
39 STEP FIVE: Determine the lesser of:
40 (A) the STEP FOUR result; or
41 (B) one and four-hundredths (1.04).
42 This subsection expires December 31, 2025.
SB 1—LS 7244/DI 120 27
1 (f) (h) This subsection applies only for purposes of determining the
2 maximum levy growth quotient to be used in determining a school
3 corporation's operations fund maximum levy in calendar years 2024
4 and 2025. For purposes of determining the maximum levy growth
5 quotient in calendar years 2024 and 2025, instead of the result
6 determined in the last STEP in subsection (c), the maximum levy
7 growth quotient is determined in the last STEP of the following
8 STEPS:
9 STEP ONE: Determine the result of STEP FIVE of subsection (c),
10 calculated as if this subsection was not in effect.
11 STEP TWO: Subtract one (1) from the STEP ONE result.
12 STEP THREE: Multiply the STEP TWO result by eight-tenths
13 (0.8).
14 STEP FOUR: Add one (1) to the STEP THREE result.
15 STEP FIVE: Determine the lesser of:
16 (A) the STEP FOUR result; or
17 (B) one and four-hundredths (1.04).
18 This subsection expires December 31, 2025.
19 SECTION 13. IC 6-1.1-18.5-3, AS AMENDED BY P.L.247-2017,
20 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
21 JULY 1, 2025]: Sec. 3. (a) A civil taxing unit may not impose an ad
22 valorem property tax levy for an ensuing calendar year that exceeds the
23 amount determined in the last STEP of the following STEPS:
24 STEP ONE: Determine the civil taxing unit's maximum
25 permissible ad valorem property tax levy for the preceding
26 calendar year.
27 STEP TWO: Multiply the amount determined in STEP ONE by
28 the amount determined in the last STEP of section 2(b) of this
29 chapter (for property taxes first due and payable in a calendar
30 year ending before January 1, 2029) or section 2(d) of this
31 chapter (for property taxes first due and payable in a
32 calendar year ending after December 31, 2028).
33 STEP THREE: Determine the lesser of one and fifteen hundredths
34 (1.15) or the quotient (rounded to the nearest ten-thousandth
35 (0.0001)), of the assessed value of all taxable property subject to
36 the civil taxing unit's ad valorem property tax levy for the ensuing
37 calendar year, divided by the assessed value of all taxable
38 property that is subject to the civil taxing unit's ad valorem
39 property tax levy for the ensuing calendar year and that is
40 contained within the geographic area that was subject to the civil
41 taxing unit's ad valorem property tax levy in the preceding
42 calendar year.
SB 1—LS 7244/DI 120 28
1 STEP FOUR: Determine the greater of the amount determined in
2 STEP THREE or one (1).
3 STEP FIVE: Multiply the amount determined in STEP TWO by
4 the amount determined in STEP FOUR.
5 STEP SIX: Add the amount determined under STEP TWO to the
6 amount of an excessive levy appeal granted under section 13 of
7 this chapter for the ensuing calendar year.
8 STEP SEVEN: Determine the greater of STEP FIVE or STEP
9 SIX.
10 (b) This subsection applies only to a civil taxing unit that is located
11 in a county that is covered by IC 6-3.6-11-1. For purposes of subsection
12 (a), revenue under IC 6-3.6-6 that is applied for purposes of a levy
13 freeze shall not be included in the amount determined under STEP
14 ONE of subsection (a) for the civil taxing unit. Notwithstanding any
15 provision in this section, any other section of this chapter, or
16 IC 12-20-21-3.2, and except as provided in subsection (c), if the
17 adopting body has adopted a resolution specifying that any increase in
18 the maximum levy is to be funded using local income tax revenue, the
19 maximum permissible ad valorem property tax levy calculated under
20 this section for the ensuing calendar year for the civil taxing unit is
21 equal to the civil taxing unit's maximum permissible ad valorem
22 property tax levy for the current calendar year. If the adopting body has
23 adopted a resolution specifying that any increase in the maximum levy
24 is not to be funded using local income tax revenue, the maximum
25 permissible ad valorem property tax levy for the civil taxing unit is
26 equal to the civil taxing unit's maximum permissible ad valorem
27 property tax levy calculated under this section for the ensuing calendar
28 year.
29 (c) In the case of a civil taxing unit that:
30 (1) is partially located in a county that is covered by
31 IC 6-3.6-11-1; and
32 (2) is partially located in a county that is not described in
33 subdivision (1);
34 the department of local government finance shall, notwithstanding
35 subsection (b), adjust the portion of the civil taxing unit's maximum
36 permissible ad valorem property tax levy that is attributable (as
37 determined by the department of local government finance) to the
38 county or counties described in subdivision (2). The department of
39 local government finance shall adjust this portion of the civil taxing
40 unit's maximum permissible ad valorem property tax levy so that,
41 notwithstanding subsection (b), this portion is allowed to increase as
42 otherwise provided in this section. If the department of local
SB 1—LS 7244/DI 120 29
1 government finance increases the civil taxing unit's maximum
2 permissible ad valorem property tax levy under this subsection, any
3 additional property taxes imposed by the civil taxing unit under the
4 adjustment shall be paid only by the taxpayers in the county or counties
5 described in subdivision (2).
6 SECTION 14. IC 6-1.1-18.5-10.5, AS AMENDED BY P.L.95-2022,
7 SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JANUARY 1, 2026]: Sec. 10.5. (a) The ad valorem property tax levy
9 limits imposed by section 3 of this chapter do not apply to ad valorem
10 property taxes imposed by a civil taxing unit for fire protection services
11 within a fire protection territory under IC 36-8-19, if the civil taxing
12 unit is a participating unit in a fire protection territory established
13 before August 1, 2001. For purposes of computing the ad valorem
14 property tax levy limits imposed on a civil taxing unit by section 3 of
15 this chapter on a civil taxing unit that is a participating unit in a fire
16 protection territory, established before August 1, 2001, the civil taxing
17 unit's ad valorem property tax levy for a particular calendar year does
18 not include that part of the levy imposed under IC 36-8-19. Any
19 property taxes imposed by a civil taxing unit that are exempted by this
20 subsection from the ad valorem property tax levy limits imposed by
21 section 3 of this chapter and first due and payable after December 31,
22 2008, may not increase annually by a percentage greater than the result
23 of:
24 (1) the maximum levy growth quotient determined under section
25 2 of this chapter; minus
26 (2) one (1).
27 (b) The department of local government finance may, under this
28 subsection, increase the maximum permissible ad valorem property tax
29 levy that would otherwise apply to a civil taxing unit under section 3
30 of this chapter to meet the civil taxing unit's obligations to a fire
31 protection territory established under IC 36-8-19. To obtain an increase
32 in the civil taxing unit's maximum permissible ad valorem property tax
33 levy, a civil taxing unit shall submit a petition to the department of
34 local government finance in the year immediately preceding the first
35 year in which the civil taxing unit levies a tax to support the fire
36 protection territory. The petition must be filed before the date specified
37 in section 12(a)(1) 12(a) of this chapter of that year. The department of
38 local government finance shall make a final determination of the civil
39 taxing unit's budget, ad valorem property tax levy, and property tax rate
40 for the fire protection territory for the ensuing calendar year. In making
41 its determination under this subsection, the department of local
42 government finance shall consider the amount that the civil taxing unit
SB 1—LS 7244/DI 120 30
1 is obligated to provide to meet the expenses of operation and
2 maintenance of the fire protection services within the territory,
3 including the participating unit's reasonable share of an operating
4 balance for the fire protection territory. The department of local
5 government finance shall determine the entire amount of the allowable
6 adjustment in the final determination. The department shall order the
7 adjustment implemented in the amounts and over the number of years,
8 not exceeding three (3), requested by the petitioning civil taxing unit.
9 However, the department of local government finance may not approve
10 under this subsection a property tax levy greater than zero (0) if the
11 civil taxing unit did not exist as of the assessment date for which the
12 tax levy will be imposed. For purposes of applying this subsection to
13 the civil taxing unit's maximum permissible ad valorem property tax
14 levy in subsequent calendar years, the department of local government
15 finance may determine not to consider part or all of the part of the
16 property tax levy imposed to establish the operating balance of the fire
17 protection territory.
18 (c) This subsection applies to a participating unit in a fire protection
19 territory established under IC 36-8-19 after December 31, 2022.
20 Notwithstanding any other law, if a total tax rate levied upon the
21 formation of a fire protection territory established under IC 36-8-19 is
22 to be implemented over a number of years as provided in
23 IC 36-8-19-7(c), the maximum permissible ad valorem property tax
24 levy that would otherwise apply to a participating unit under section 3
25 of this chapter to meet the participating unit's obligations to a fire
26 protection territory does not apply to ad valorem property taxes
27 imposed by the participating unit to meet the participating unit's
28 obligations to the fire protection territory over the number of years in
29 which the total tax rate is to be implemented by each participating unit.
30 For purposes of calculating the maximum permissible ad valorem
31 property tax levy imposed by a participating unit for each year for
32 which the participating unit implements a total tax rate to support the
33 fire protection territory, the participating unit's maximum permissible
34 ad valorem property tax levy for the preceding calendar year under
35 section 3(a) STEP ONE of this chapter is increased each year by an
36 amount equal to the difference between:
37 (1) the amount the participating unit will have to levy for the
38 ensuing calendar year in order to fund the participating unit's
39 share of the fire protection territory budget for the operating costs
40 as provided in the ordinance or resolution making the unit a
41 participating unit in the fire protection territory; and
42 (2) the participating unit's levy for fire protection services for the
SB 1—LS 7244/DI 120 31
1 calendar year that immediately precedes the ensuing calendar year
2 in which the participating unit levies a tax to support the fire
3 protection territory.
4 SECTION 15. IC 6-1.1-18.5-12, AS AMENDED BY P.L.156-2024,
5 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JANUARY 1, 2026]: Sec. 12. (a) Any civil taxing unit that incurs
7 increased costs resulting from annexation and determines that it
8 cannot carry out its governmental functions for an ensuing calendar
9 year under the levy limitations imposed by section 3 or 25 of this
10 chapter, as applicable, may, subject to subsections (h) and (i):
11 subsections (g) and (h),
12 (1) before October 20 of the calendar year immediately preceding
13 the ensuing calendar year, or
14 (2) in the case of a request described in section 16 of this chapter,
15 before December 31 of the calendar year immediately preceding
16 the ensuing calendar year;
17 appeal to the department of local government finance for relief from
18 those levy limitations. In the appeal the civil taxing unit must state that
19 it will be unable to carry out the governmental functions committed to
20 it by law unless it is given the authority that it is petitioning for. The
21 civil taxing unit must support these allegations by reasonably detailed
22 statements of fact.
23 (b) The department of local government finance shall immediately
24 proceed to the examination and consideration of the merits of the civil
25 taxing unit's appeal.
26 (c) In considering an appeal, the department of local government
27 finance has the power to conduct hearings, require any officer or
28 member of the appealing civil taxing unit to appear before it, or require
29 any officer or member of the appealing civil taxing unit to provide the
30 department with any relevant records or books.
31 (d) If an officer or member:
32 (1) fails to appear at a hearing after having been given written
33 notice requiring that person's attendance; or
34 (2) fails to produce the books and records that the department by
35 written notice required the officer or member to produce;
36 then the department may file an affidavit in the circuit court, superior
37 court, or probate court in the jurisdiction in which the officer or
38 member may be found setting forth the facts of the failure.
39 (e) Upon the filing of an affidavit under subsection (d), the court
40 shall promptly issue a summons, and the sheriff of the county within
41 which the court is sitting shall serve the summons. The summons must
42 command the officer or member to appear before the department to
SB 1—LS 7244/DI 120 32
1 provide information to the department or to produce books and records
2 for the department's use, as the case may be. Disobedience of the
3 summons constitutes, and is punishable as, a contempt of the court that
4 issued the summons.
5 (f) All expenses incident to the filing of an affidavit under
6 subsection (d) and the issuance and service of a summons shall be
7 charged to the officer or member against whom the summons is issued,
8 unless the court finds that the officer or member was acting in good
9 faith and with reasonable cause. If the court finds that the officer or
10 member was acting in good faith and with reasonable cause or if an
11 affidavit is filed and no summons is issued, the expenses shall be
12 charged against the county in which the affidavit was filed and shall be
13 allowed by the proper fiscal officers of that county.
14 (g) The fiscal officer of a civil taxing unit that appeals under section
15 16 of this chapter for relief from levy limitations shall immediately file
16 a copy of the appeal petition with the county auditor and the county
17 treasurer of the county in which the unit is located.
18 (h) (g) This subsection applies to a civil taxing unit whose budget
19 for the upcoming year is subject to review by a fiscal body under:
20 (1) IC 6-1.1-17-20;
21 (2) IC 6-1.1-17-20.3; or
22 (3) IC 6-1.1-17-20.4.
23 A civil taxing unit described in this subsection may not submit an
24 appeal under this section unless the civil taxing unit receives approval
25 from the appropriate fiscal body to submit the appeal.
26 (i) (h) A participating unit of a fire protection territory may not
27 submit an appeal under this section unless each participating unit of the
28 fire protection territory has adopted a resolution approving submission
29 of the appeal.
30 SECTION 16. IC 6-1.1-18.5-13, AS AMENDED BY P.L.174-2022,
31 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JANUARY 1, 2026]: Sec. 13. (a) With respect to an appeal filed under
33 section 12 of this chapter, the department may find that a civil taxing
34 unit should receive any one (1) or more of the following types of the
35 following relief:
36 (1) Permission to the civil taxing unit to increase its levy in excess
37 of the limitations established under section 3 or 25 of this chapter,
38 as applicable, if in the judgment of the department the increase is
39 reasonably necessary due to increased costs of the civil taxing
40 unit resulting from annexation. consolidation, or other extensions
41 of governmental services by the civil taxing unit to additional
42 geographic areas. With respect to annexation, consolidation, or
SB 1—LS 7244/DI 120 33
1 other extensions of governmental services in a calendar year, If
2 those increased costs are incurred by the civil taxing unit in that
3 calendar year and more than one (1) immediately succeeding
4 calendar year, the unit may appeal under section 12 of this chapter
5 for permission to increase its levy under this subdivision based on
6 those increased costs in any of the following:
7 (A) The first calendar year in which those costs are incurred.
8 (B) One (1) or more of the immediately succeeding four (4)
9 calendar years.
10 (2) Permission to the civil taxing unit to increase its levy in excess
11 of the limitations established under section 3 or 25 of this chapter,
12 as applicable, if the department finds that the quotient determined
13 under STEP SIX of the following formula is equal to or greater
14 than one and two-hundredths (1.02):
15 STEP ONE: Determine the three (3) calendar years that most
16 immediately precede the ensuing calendar year.
17 STEP TWO: Compute separately, for each of the calendar
18 years determined in STEP ONE, the quotient (rounded to the
19 nearest ten-thousandth (0.0001)) of the sum of the civil taxing
20 unit's total assessed value of all taxable property divided by the
21 sum determined under this STEP for the calendar year
22 immediately preceding the particular calendar year.
23 STEP THREE: Divide the sum of the three (3) quotients
24 computed in STEP TWO by three (3).
25 STEP FOUR: Compute separately, for each of the calendar
26 years determined in STEP ONE, the quotient (rounded to the
27 nearest ten-thousandth (0.0001)) of the sum of the total
28 assessed value of all taxable property in all counties divided by
29 the sum determined under this STEP for the calendar year
30 immediately preceding the particular calendar year.
31 STEP FIVE: Divide the sum of the three (3) quotients
32 computed in STEP FOUR by three (3).
33 STEP SIX: Divide the STEP THREE amount by the STEP
34 FIVE amount.
35 The civil taxing unit may increase its levy by a percentage not
36 greater than the percentage by which the STEP THREE amount
37 exceeds the percentage by which the civil taxing unit may
38 increase its levy under section 3 or 25 of this chapter, as
39 applicable, based on the maximum levy growth quotient
40 determined under section 2 of this chapter.
41 (3) (2) A levy increase may be granted under this subdivision only
42 for property taxes first due and payable after December 31, 2008.
SB 1—LS 7244/DI 120 34
1 Permission to a civil taxing unit to increase its levy in excess of
2 the limitations established under section 3 or 25 of this chapter,
3 as applicable, if the department determines that the civil taxing
4 unit cannot carry out its governmental functions for an ensuing
5 calendar year under the levy limitations imposed by section 3 or
6 25 of this chapter, as applicable, due to a natural disaster, an
7 accident, or another unanticipated emergency.
8 (b) The department of local government finance shall increase the
9 maximum permissible ad valorem property tax levy under section 3 of
10 this chapter for the city of Goshen for 2012 and thereafter by an
11 amount equal to the greater of zero (0) or the result of:
12 (1) the city's total pension costs in 2009 for the 1925 police
13 pension fund (IC 36-8-6) and the 1937 firefighters' pension fund
14 (IC 36-8-7); minus
15 (2) the sum of:
16 (A) the total amount of state funds received in 2009 by the city
17 and used to pay benefits to members of the 1925 police
18 pension fund (IC 36-8-6) or the 1937 firefighters' pension fund
19 (IC 36-8-7); plus
20 (B) any previous permanent increases to the city's levy that
21 were authorized to account for the transfer to the state of the
22 responsibility to pay benefits to members of the 1925 police
23 pension fund (IC 36-8-6) and the 1937 firefighters' pension
24 fund (IC 36-8-7).
25 SECTION 17. IC 6-1.1-18.5-16, AS AMENDED BY P.L.159-2020,
26 SECTION 38, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2025]: Sec. 16. (a) This section applies to property tax
28 levies imposed before January 1, 2026.
29 (b) A civil taxing unit may request permission from the department
30 to impose an ad valorem property tax levy that exceeds the limits
31 imposed by section 3 of this chapter if:
32 (1) the civil taxing unit experienced a property tax revenue
33 shortfall that resulted from erroneous assessed valuation figures
34 being provided to the civil taxing unit;
35 (2) the erroneous assessed valuation figures were used by the civil
36 taxing unit in determining its total property tax rate; and
37 (3) the error in the assessed valuation figures was found after the
38 civil taxing unit's property tax levy resulting from that total rate
39 was finally approved by the department of local government
40 finance.
41 However, a civil taxing unit may not make a request described in this
42 subsection on account of a revenue shortfall experienced in excess of
SB 1—LS 7244/DI 120 35
1 five (5) years from the date of the most recent certified budget, tax rate,
2 and levy of the civil taxing unit under IC 6-1.1-17-16.
3 (b) (c) A civil taxing unit may request permission from the
4 department to impose an ad valorem property tax levy that exceeds the
5 limits imposed by section 3 or 25 of this chapter, as applicable, if the
6 civil taxing unit experienced a property tax revenue shortfall because
7 of the payment of refunds that resulted from appeals under this article
8 and IC 6-1.5. However, a civil taxing unit may not make a request
9 described in this subsection on account of a revenue shortfall
10 experienced in excess of five (5) years from the date of the most recent
11 certified budget, tax rate, and levy of the civil taxing unit under
12 IC 6-1.1-17-16.
13 (c) (d) If the department determines that a shortfall described in
14 subsection (a) or (b) (b) or (c) has occurred, the department of local
15 government finance may find that the civil taxing unit should be
16 allowed to impose a property tax levy exceeding the limit imposed by
17 section 3 or 25 of this chapter, as applicable. However, the maximum
18 amount by which the civil taxing unit's levy may be increased over the
19 limits imposed by section 3 or 25 of this chapter, as applicable, equals
20 the remainder of the civil taxing unit's property tax levy for the
21 particular calendar year as finally approved by the department of local
22 government finance minus the actual property tax levy collected by the
23 civil taxing unit for that particular calendar year.
24 (d) (e) Any property taxes collected by a civil taxing unit over the
25 limits imposed by section 3 or 25 of this chapter, as applicable, under
26 the authority of this section may not be treated as a part of the civil
27 taxing unit's maximum permissible ad valorem property tax levy for
28 purposes of determining its maximum permissible ad valorem property
29 tax levy for future years.
30 (e) (f) If the department of local government finance authorizes an
31 excess tax levy under this section, it shall take appropriate steps to
32 insure that the proceeds are first used to repay any loan made to the
33 civil taxing unit for the purpose of meeting its current expenses.
34 (g) This section expires December 31, 2026.
35 SECTION 18. IC 6-1.1-18.5-21, AS AMENDED BY P.L.236-2023,
36 SECTION 31, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2025]: Sec. 21. (a) A civil taxing unit may determine that the
38 ad valorem property tax levy limits imposed by section 3 of this chapter
39 do not apply to all or part of the ad valorem property taxes imposed to
40 repay a loan under either or both of the following:
41 (1) IC 6-1.1-21.3.
42 (2) IC 6-1.1-21.9.
SB 1—LS 7244/DI 120 36
1 (b) This subsection applies to a civil taxing unit or (before January
2 1, 2029) school corporation located in Lake County that has received
3 or is receiving a loan under IC 6-1.1-22.1. The ad valorem property tax
4 levy limits imposed in section 3 of this chapter do not apply to all or
5 part of the ad valorem property taxes imposed to repay a loan under
6 IC 6-1.1-22.1 for the ensuing calendar year if:
7 (1) the civil taxing unit or (before January 1, 2029) school
8 corporation provides to the department the information the
9 department considers necessary to determine the amount of ad
10 valorem property taxes imposed to repay the loan in the ensuing
11 calendar year; and
12 (2) the information described in subdivision (1) is provided to the
13 department not later than December 1 of the year preceding the
14 ensuing calendar year.
15 SECTION 19. IC 6-1.1-18.5-25, AS AMENDED BY P.L.236-2023,
16 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
17 JULY 1, 2025]: Sec. 25. (a) The ad valorem property tax levy limits
18 imposed under section 3 of this chapter do not apply to a municipality
19 in a year if all the following apply:
20 (1) The percentage growth in the municipality's assessed value for
21 the preceding year compared to the year before the preceding year
22 is at least two (2) times the maximum levy growth quotient
23 determined under section 2 of this chapter for the preceding year.
24 (2) The municipality's population increased by at least one
25 hundred fifty percent (150%) between the last two (2) decennial
26 censuses. The computation of an increase of one hundred fifty
27 percent (150%) under this subdivision shall be determined
28 according to the last STEP of the following STEPS:
29 STEP ONE: Determine the municipality's population as
30 tabulated following the first decennial census.
31 STEP TWO: Determine the municipality's population as
32 tabulated following the second decennial census.
33 STEP THREE: Multiply the amount determined under STEP
34 ONE by a factor of two and five-tenths (2.5).
35 STEP FOUR: Determine whether the population determined
36 under STEP TWO is greater than or equal to the STEP THREE
37 product.
38 (b) A municipality that meets all the requirements under subsection
39 (a) may increase its ad valorem property tax levy in excess of the limits
40 imposed under section 3 of this chapter by a percentage equal to the
41 lesser of:
42 (1) the percentage growth in the municipality's assessed value for
SB 1—LS 7244/DI 120 37
1 the preceding year compared to the year before the preceding
2 year; or
3 (2) six percent (6%).
4 (c) A municipality's maximum levy growth that results from either
5 annexation or the pass through of assessed value from a tax increment
6 financing district may not be included for the purposes of determining
7 a municipality's maximum levy growth under this section.
8 (d) This section applies to property tax levies imposed after
9 December 31, 2016, and before January 1, 2026.
10 (e) This section expires December 31, 2026.
11 SECTION 20. IC 6-1.1-18.7 IS ADDED TO THE INDIANA CODE
12 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
13 UPON PASSAGE]:
14 Chapter 18.7. Political Subdivision Operating Referendum
15 Sec. 1. As used in this chapter, "fund" refers to the referendum
16 tax levy fund.
17 Sec. 2. As used in this chapter, "levy" refers to the property tax
18 levy imposed under this chapter.
19 Sec. 3. As used in this chapter, "referendum" refers to a
20 referendum under this chapter.
21 Sec. 4. A school corporation may not impose a referendum
22 under this chapter if the school corporation imposes an operating
23 referendum under IC 20-46-1. However, a school corporation that
24 imposes a school safety referendum under IC 20-46-9 may impose
25 a referendum under this chapter but may not use the referendum's
26 proceeds for any purpose that is allowed for a referendum imposed
27 under IC 20-46-9.
28 Sec. 5. A referendum tax levy under this chapter may be put
29 into effect only if a majority of the individuals who vote in a
30 referendum that is conducted in accordance with this section and
31 sections 9 through 19 of this chapter approves the political
32 subdivision's making a levy for the ensuing calendar year.
33 Sec. 6. (a) Subject to subsection (c) and this chapter, the proper
34 officers of a political subdivision may adopt a resolution to place a
35 referendum under this chapter on the ballot for either of the
36 following purposes:
37 (1) The proper officers of the political subdivision determine
38 that the political subdivision cannot, in a calendar year, carry
39 out a duty of the political subdivision unless it imposes a
40 referendum tax levy under this chapter.
41 (2) The proper officers of the political subdivision determine
42 that a referendum tax levy under this chapter should be
SB 1—LS 7244/DI 120 38
1 imposed to replace property tax revenue that the political
2 subdivision will not receive because of the application of the
3 maximum levy growth quotient under IC 6-1.1-18.5.
4 (b) The political subdivision shall certify a copy of the resolution
5 to place a referendum on the ballot to the following:
6 (1) The department of local government finance, including a
7 copy of the revenue spending plan adopted under subsection
8 (c).
9 (2) The county fiscal body of each county in which the
10 political subdivision is located (for informational purposes
11 only).
12 (3) The circuit court clerk of each county in which the
13 political subdivision is located.
14 (c) As part of the resolution described in subsection (a), the
15 proper officers of a political subdivision shall adopt a revenue
16 spending plan for the proposed referendum tax levy that includes:
17 (1) an estimate of the amount of annual revenue expected to
18 be collected if a levy is imposed under this chapter;
19 (2) subject to section 7 of this chapter, the specific purposes
20 for which the revenue collected from a levy imposed under
21 this chapter will be used; and
22 (3) an estimate of the annual dollar amounts that will be
23 expended for each purpose described in subdivision (2).
24 (d) A political subdivision shall specify in its proposed budget
25 the political subdivision's revenue spending plan adopted under
26 subsection (c) and present the revenue spending plan at its public
27 hearing on the proposed budget under IC 6-1.1-17-3.
28 Sec. 7. The uses of the proceeds of a referendum are restricted
29 to the uses of the fund of the political subdivision that is controlled
30 by the maximum levy limits under IC 6-1.1-18.5-3 and the purpose
31 for which a political subdivision imposes a referendum under this
32 chapter.
33 Sec 8. The department of local government finance shall
34 prescribe a form that provides a template for a political
35 subdivision to use for purposes of section 9 of this chapter. The
36 department of local government finance shall provide a report in
37 an electronic format under IC 5-14-6 to the legislative council that
38 contains the form prescribed under this section.
39 Sec. 9. The question to be submitted to the voters in the
40 referendum must use the form prescribed under section 8 of this
41 chapter as provided to the political subdivision by the department
42 of local government finance.
SB 1—LS 7244/DI 120 39
1 Sec. 10. The county auditor shall distribute proceeds collected
2 from an allocation area (as defined in IC 6-1.1-21.2-3) that are
3 attributable to property taxes imposed after being approved by the
4 voters in the referendum, to the political subdivision for which the
5 referendum was conducted. The amount to be distributed to the
6 political subdivision shall be treated as part of the referendum levy
7 for purposes of setting the political subdivision's tax rates.
8 Sec. 11. The voters in a referendum may not approve a levy that
9 is imposed for more than one (1) year. A levy may not be
10 reimposed or extended under this chapter.
11 Sec. 12. Each circuit court clerk shall, upon receiving the
12 question certified by the governing body of a political subdivision
13 under this chapter, call a meeting of the county election board to
14 make arrangements for the referendum.
15 Sec. 13. The referendum shall be held in the next general
16 election as provided under IC 3-10-9-3(a)(2), in which all the
17 registered voters who are residents of the political subdivision are
18 entitled to vote after certification of the question. The certification
19 of the question must occur not later than noon August 1.
20 Sec. 14. Each county election board shall cause:
21 (1) the question certified to the circuit court clerk by the
22 proper officers of a political subdivision to be placed on the
23 ballot in the form prescribed by IC 3-10-9-4; and
24 (2) an adequate supply of ballots and voting equipment to be
25 delivered to the precinct election board of each precinct in
26 which the referendum is to be held.
27 Sec. 15. (a) The individuals entitled to vote in the referendum
28 are all of the registered voters resident in the political subdivision.
29 (b) An individual who changes residence from a location within
30 a political subdivision to a location outside of the political
31 subdivision less than thirty (30) days before an election under this
32 chapter may not vote on the public question.
33 Sec. 16. Each precinct election board shall count the affirmative
34 votes and the negative votes cast in the referendum and shall
35 certify those two (2) totals to the county election board of each
36 county in which the referendum is held. The circuit court clerk of
37 each county shall, immediately after the votes cast in the
38 referendum have been counted, certify the results of the
39 referendum to the department of local government finance. If a
40 majority of the individuals who voted in the referendum voted
41 "yes" on the referendum question:
42 (1) the department of local government finance shall promptly
SB 1—LS 7244/DI 120 40
1 notify the political subdivision that the political subdivision is
2 authorized to collect, for the calendar year that next follows
3 the calendar year in which the referendum is held, a levy not
4 greater than the amount approved in the referendum;
5 (2) the levy may be imposed for only one (1) year following the
6 referendum for the political subdivision in which the
7 referendum is held; and
8 (3) the political subdivision shall establish a fund to deposit
9 the proceeds generated from the referendum. Proceeds from
10 the referendum may only be used for the purposes stated on
11 the ballot.
12 Sec. 17. (a) This subsection applies to school corporations. A
13 school corporation's levy under this chapter may not be considered
14 in the determination of the school corporation's state tuition
15 support distribution under IC 20-43 or the determination of any
16 other property tax levy imposed by the school corporation.
17 (b) This subsection applies to all other political subdivisions. A
18 political subdivision's levy under this chapter may not be
19 considered in the determination of any other property tax levy
20 imposed by the political subdivision.
21 Sec. 18. (a) If a majority of the persons who voted in the
22 referendum did not vote "yes" on the referendum question:
23 (1) the political subdivision may not make any levy for its
24 referendum tax levy fund; and
25 (2) another referendum under this chapter may not be held
26 earlier than:
27 (A) except as provided in clause (B), seven hundred (700)
28 days after the date of the referendum; or
29 (B) three hundred fifty (350) days after the date of the
30 referendum, if a petition that meets the requirements of
31 subsection (b) is submitted to the county auditor.
32 (b) If a majority of the persons who voted in the referendum did
33 not vote "yes" on the referendum question, a petition may be
34 submitted to the county auditor to request that the limit under
35 subsection (a)(2)(B) applies to the holding of a subsequent
36 referendum by the political subdivision. If such a petition is
37 submitted to the county auditor and is signed by the lesser of:
38 (1) five hundred (500) persons who are either owners of
39 property within the political subdivision or registered voters
40 residing within the political subdivision; or
41 (2) five percent (5%) of the registered voters residing within
42 the political subdivision;
SB 1—LS 7244/DI 120 41
1 the limit under subsection (a)(2)(B) applies to the holding of a
2 second referendum by the political subdivision, and the limit under
3 subsection (a)(2)(A) does not apply to the holding of a second
4 referendum by the political subdivision.
5 Sec. 19. (a) If a referendum is approved by the voters in a
6 political subdivision under this chapter in a calendar year, another
7 referendum may not be placed on the ballot in the political
8 subdivision under this chapter in the following calendar year.
9 (b) Notwithstanding any other provision of this chapter and in
10 addition to the restriction specified in subsection (a), if a political
11 subdivision imposes in a calendar year a referendum levy approved
12 in a referendum under this chapter, the political subdivision may
13 not simultaneously impose in that calendar year more than one (1)
14 additional referendum levy approved in a subsequent referendum
15 under this chapter.
16 Sec. 20. (a) Except as otherwise provided in this section, during
17 the period beginning with the adoption of a resolution by the
18 political subdivision to place a referendum under this chapter on
19 the ballot and continuing through the day on which the referendum
20 is submitted to the voters, the political subdivision may not
21 promote a position on the referendum by doing any of the
22 following:
23 (1) Using facilities or equipment, including mail and
24 messaging systems, owned by the political subdivision to
25 promote a position on the referendum, unless equal access to
26 the facilities or equipment is given to persons with a position
27 opposite to that of the political subdivision.
28 (2) Making an expenditure of money from a fund controlled
29 by the political subdivision to promote a position on the
30 referendum.
31 (3) Using an employee to promote a position on the
32 referendum during the employee's normal working hours or
33 paid overtime, or otherwise compelling an employee to
34 promote a position on the referendum at any time. However,
35 if a person described in subsection (d) is advocating for or
36 against a position on the referendum or discussing the
37 referendum as authorized under subsection (d), an employee
38 of the political subdivision may assist the person in presenting
39 information on the referendum, if requested to do so by the
40 person described in subsection (d).
41 (4) In the case of a school corporation, promoting a position
42 on the referendum by:
SB 1—LS 7244/DI 120 42
1 (A) using students to transport written materials to their
2 residences or in any way involving students in a school
3 organized promotion of a position;
4 (B) including a statement within another communication
5 sent to the students' residences; or
6 (C) initiating discussion of the referendum at a meeting
7 between a teacher and parents of a student regarding the
8 student's performance or behavior at school. However, if
9 the parents initiate a discussion of the referendum at the
10 meeting, the teacher may acknowledge the issue and direct
11 the parents to a source of factual information on the
12 referendum.
13 However, this section does not prohibit an official or employee of
14 the political subdivision from carrying out duties with respect to a
15 referendum that are part of the normal and regular conduct of the
16 official's or employee's office or agency, including the furnishing
17 of factual information regarding the referendum in response to
18 inquiries from any person.
19 (b) The staff and employees of a school corporation may not
20 personally identify a student as the child of a parent or guardian
21 who supports or opposes the referendum.
22 (c) This subsection does not apply to:
23 (1) a personal expenditure to promote a position on a local
24 public question by an employee of a political subdivision
25 whose employment is governed by a collective bargaining
26 contract or an employment contract; or
27 (2) an expenditure to promote a position on a local public
28 question by a person or an organization that has a contract or
29 an arrangement (whether formal or informal) with the
30 political subdivision solely for the use of the political
31 subdivision's facilities.
32 A person or an organization that has a contract or arrangement
33 (whether formal or informal) with a political subdivision to
34 provide goods or services to the political subdivision may not spend
35 any money to promote a position on the referendum. A person or
36 an organization that violates this subsection commits a Class A
37 infraction.
38 (d) Notwithstanding any other law, an elected or appointed
39 official of a political subdivision may at any time:
40 (1) personally advocate for or against a position on a
41 referendum; or
42 (2) discuss the referendum with any individual, group, or
SB 1—LS 7244/DI 120 43
1 organization or personally advocate for or against a position
2 on a referendum before any individual, group, or
3 organization;
4 so long as it is not done by using public funds. Advocacy or
5 discussion allowed under this subsection is not considered a use of
6 public funds. However, in the case of a school corporation, this
7 subsection does not authorize or apply to advocacy or discussion by
8 a school board member, superintendent, assistant superintendent,
9 or school business official to or with students that occurs during
10 the regular school day.
11 (e) A student may use school equipment or facilities to report or
12 editorialize about a local public question as part of the news
13 coverage of the referendum by a student newspaper or broadcast.
14 SECTION 21. IC 6-1.1-20-3.6, AS AMENDED BY P.L.136-2024,
15 SECTION 25, AND AS AMENDED BY P.L.156-2024, SECTION 17,
16 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
17 OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND
18 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
19 Sec. 3.6. (a) Except as provided in sections 3.7 and 3.8 of this chapter,
20 this section applies only to a controlled project described in section
21 3.5(a) of this chapter.
22 (b) In the case of a controlled project:
23 (1) described in section 3.5(a)(1)(A) through 3.5(a)(1)(C) of this
24 chapter, if a sufficient petition requesting the application of the
25 local public question process has been filed as set forth in section
26 3.5 of this chapter; or
27 (2) described in section 3.5(a)(1)(D) 3.5(a)(1)(E) of this chapter
28 (before its expiration);
29 a political subdivision may not impose property taxes to pay debt
30 service on bonds or lease rentals on a lease for a controlled project
31 unless the political subdivision's proposed debt service or lease rental
32 is approved in an election on a local public question held under this
33 section.
34 (c) Except as provided in subsection (k), the following question
35 shall be submitted to the eligible voters at the election conducted under
36 this section:
37 "Shall ________ (insert the name of the political subdivision)
38 increase property taxes paid to the _______ (insert the type of
39 taxing unit) by homeowners and businesses? If this public
40 question is approved by the voters, the average property tax paid
41 to the _______ (insert the type of taxing unit) per year on a
42 residence would increase by ______% (insert the estimated
SB 1—LS 7244/DI 120 44
1 average percentage of property tax increase paid to the political
2 subdivision on a residence within the political subdivision as
3 determined under subsection (n)) and the average property tax
4 paid to the _____ (insert the type of taxing unit) per year on a
5 business property would increase by ______% (insert the
6 estimated average percentage of property tax increase paid to the
7 political subdivision on a business property within the political
8 subdivision as determined under subsection (o)). The political
9 subdivision may issue bonds or enter into a lease to ________
10 (insert a brief description of the controlled project), which is
11 estimated to cost _______ (insert the total cost of the project)
12 over ______ (insert number of years to bond maturity or
13 termination of lease) years. The most recent property tax
14 referendum within the boundaries of the political subdivision for
15 which this public question is being considered was proposed by
16 ________ (insert name of political subdivision) in ______ (insert
17 year of most recent property tax referendum) and ________
18 (insert whether the measure passed or failed).".
19 "Shall ________ (insert the name of the political subdivision)
20 increase property taxes paid to political subdivisions for no
21 more than ______ (insert the number of years immediately
22 following the holding of the referendum) for the purpose of
23 funding _______ (insert a brief description of the project use
24 or purpose) which is estimated to cost no more than _______
25 (insert the total cost of the project) and is estimated to
26 ________ (insert increase or decrease, whichever is
27 applicable) the property taxes paid to the political subdivision
28 by imposing a property tax rate that results in a maximum
29 annual amount that does not exceed ______ (insert maximum
30 amount of annual levy). If this public question is approved by
31 the voters, the property tax paid annually for a median
32 residence of __________ (insert the political subdivision's
33 median household assessed value) would increase by _______
34 per year (insert dollar amount).".
35 The public question must appear on the ballot in the form approved by
36 the county election board. If the political subdivision proposing to issue
37 bonds or enter into a lease is located in more than one (1) county, the
38 county election board of each county shall jointly approve the form of
39 the public question that will appear on the ballot in each county. The
40 form approved by the county election board may differ from the
41 language certified to the county election board by the county auditor.
42 If the county election board approves the language of a public question
SB 1—LS 7244/DI 120 45
1 under this subsection, the county election board shall submit the
2 language and the certification of the county auditor described in
3 subsection (p) to the department of local government finance for
4 review.
5 (d) The department of local government finance shall review the
6 language of the public question to evaluate whether the description of
7 the controlled project is accurate and is not biased against either a vote
8 in favor of the controlled project or a vote against the controlled
9 project. The department of local government finance shall post the
10 estimated average percentage of property tax increases to be paid to a
11 political subdivision on a residence and business property that are
12 certified by the county auditor under subsection (p) on the department's
13 Internet web site. website. The department of local government finance
14 may either approve the ballot language as submitted or recommend that
15 the ballot language be modified as necessary to ensure that the
16 description of the controlled project is accurate and is not biased. The
17 department of local government finance shall certify its approval or
18 recommendations to the county auditor and the county election board
19 not more than ten (10) days after both the certification of the county
20 auditor described in subsection (p) and the language of the public
21 question is are submitted to the department for review. If the
22 department of local government finance recommends a modification to
23 the ballot language, the county election board shall, after reviewing the
24 recommendations of the department of local government finance,
25 submit modified ballot language to the department for the department's
26 approval or recommendation of any additional modifications. The
27 public question may not be certified by the county auditor under
28 subsection (e) unless the department of local government finance has
29 first certified the department's final approval of the ballot language for
30 the public question.
31 (e) The county auditor shall certify the finally approved public
32 question under IC 3-10-9-3 to the county election board of each county
33 in which the political subdivision is located. The certification must
34 occur not later than noon August 1.
35 (1) seventy-four (74) days before a primary election if the public
36 question is to be placed on the primary or municipal primary
37 election ballot; or
38 (2) August 1 if the public question is to be placed on the general
39 or municipal election ballot.
40 Subject to the certification requirements and deadlines under this
41 subsection and except as provided in subsection (j), the public question
42 shall be placed on the ballot at the next primary election, general
SB 1—LS 7244/DI 120 46
1 election. or municipal election in which all voters of the political
2 subdivision are entitled to vote. However, if a primary election, general
3 election, or municipal election will not be held during the first year in
4 which the public question is eligible to be placed on the ballot under
5 this section and if the political subdivision requests the public question
6 to be placed on the ballot at a special election, the public question shall
7 be placed on the ballot at a special election to be held on the first
8 Tuesday after the first Monday in May or November of the year. The
9 certification must occur not later than noon seventy-four (74) days
10 before a special election to be held in May (if the special election is to
11 be held in May) or noon on August 1 (if the special election is to be
12 held in November). The fiscal body of the political subdivision that
13 requests the special election shall pay the costs of holding the special
14 election. The county election board shall give notice under IC 5-3-1 of
15 a special election conducted under this subsection. A special election
16 conducted under this subsection is under the direction of the county
17 election board. The county election board shall take all steps necessary
18 to carry out the special election.
19 (f) The circuit court clerk shall certify the results of the public
20 question to the following:
21 (1) The county auditor of each county in which the political
22 subdivision is located.
23 (2) The department of local government finance.
24 (g) Subject to the requirements of IC 6-1.1-18.5-8, the political
25 subdivision may issue the proposed bonds or enter into the proposed
26 lease rental if a majority of the eligible voters voting on the public
27 question vote in favor of the public question.
28 (h) If a majority of the eligible voters voting on the public question
29 vote in opposition to the public question, both of the following apply:
30 (1) The political subdivision may not issue the proposed bonds or
31 enter into the proposed lease rental.
32 (2) Another public question under this section on the same or a
33 substantially similar project may not be submitted to the voters
34 earlier than:
35 (A) except as provided in clause (B), seven hundred (700)
36 days after the date of the public question; or
37 (B) three hundred fifty (350) days after the date of the election,
38 if a petition that meets the requirements of subsection (m) is
39 submitted to the county auditor.
40 (i) IC 3, to the extent not inconsistent with this section, applies to an
41 election held under this section.
42 (j) A political subdivision may not divide a controlled project in
SB 1—LS 7244/DI 120 47
1 order to avoid the requirements of this section and section 3.5 of this
2 chapter. A person that owns property within a political subdivision or
3 a person that is a registered voter residing within a political subdivision
4 may file a petition with the department of local government finance
5 objecting that the political subdivision has divided a controlled project
6 into two (2) or more capital projects in order to avoid the requirements
7 of this section and section 3.5 of this chapter. The petition must be filed
8 not more than ten (10) days after the political subdivision gives notice
9 of the political subdivision's decision under section 3.5 of this chapter
10 or a determination under section 5 of this chapter to issue bonds or
11 enter into leases for a capital project that the person believes is the
12 result of a division of a controlled project that is prohibited by this
13 subsection. If the department of local government finance receives a
14 petition under this subsection, the department shall not later than thirty
15 (30) days after receiving the petition make a final determination on the
16 issue of whether the political subdivision divided a controlled project
17 in order to avoid the requirements of this section and section 3.5 of this
18 chapter. If the department of local government finance determines that
19 a political subdivision divided a controlled project in order to avoid the
20 requirements of this section and section 3.5 of this chapter and the
21 political subdivision continues to desire to proceed with the project, the
22 political subdivision may appeal the determination of the department
23 of local government finance to the Indiana board of tax review. A
24 political subdivision shall be considered to have divided a capital
25 project in order to avoid the requirements of this section and section
26 3.5 of this chapter if the result of one (1) or more of the subprojects
27 cannot reasonably be considered an independently desirable end in
28 itself without reference to another capital project. This subsection does
29 not prohibit a political subdivision from undertaking a series of capital
30 projects in which the result of each capital project can reasonably be
31 considered an independently desirable end in itself without reference
32 to another capital project.
33 (k) This subsection applies to a political subdivision for which a
34 petition requesting a public question has been submitted under section
35 3.5 of this chapter. The legislative body (as defined in IC 36-1-2-9) of
36 the political subdivision may adopt a resolution to withdraw a
37 controlled project from consideration in a public question. If the
38 legislative body provides a certified copy of the resolution to the county
39 auditor and the county election board not later than sixty-three (63)
40 days before the election at which the public question would be on the
41 ballot, the public question on the controlled project shall not be placed
42 on the ballot and the public question on the controlled project shall not
SB 1—LS 7244/DI 120 48
1 be held, regardless of whether the county auditor has certified the
2 public question to the county election board. If the withdrawal of a
3 public question under this subsection requires the county election
4 board to reprint ballots, the political subdivision withdrawing the
5 public question shall pay the costs of reprinting the ballots. If a political
6 subdivision withdraws a public question under this subsection that
7 would have been held at a special election and the county election
8 board has printed the ballots before the legislative body of the political
9 subdivision provides a certified copy of the withdrawal resolution to
10 the county auditor and the county election board, the political
11 subdivision withdrawing the public question shall pay the costs
12 incurred by the county in printing the ballots. If a public question on a
13 controlled project is withdrawn under this subsection, a public question
14 under this section on the same controlled project or a substantially
15 similar controlled project may not be submitted to the voters earlier
16 than three hundred fifty (350) days after the date the resolution
17 withdrawing the public question is adopted.
18 (l) If a public question regarding a controlled project is placed on
19 the ballot to be voted on at an election under this section, the political
20 subdivision shall submit to the department of local government finance,
21 at least thirty (30) days before the election, the following information
22 regarding the proposed controlled project for posting on the
23 department's Internet web site: website:
24 (1) The cost per square foot of any buildings being constructed as
25 part of the controlled project.
26 (2) The effect that approval of the controlled project would have
27 on the political subdivision's property tax rate.
28 (3) The maximum term of the bonds or lease.
29 (4) The maximum principal amount of the bonds or the maximum
30 lease rental for the lease.
31 (5) The estimated interest rates that will be paid and the total
32 interest costs associated with the bonds or lease.
33 (6) The purpose of the bonds or lease.
34 (7) In the case of a controlled project proposed by a school
35 corporation:
36 (A) the current and proposed square footage of school building
37 space per student;
38 (B) enrollment patterns within the school corporation; and
39 (C) the age and condition of the current school facilities.
40 (m) If a majority of the eligible voters voting on the public question
41 vote in opposition to the public question, a petition may be submitted
42 to the county auditor to request that the limit under subsection
SB 1—LS 7244/DI 120 49
1 (h)(2)(B) apply to the holding of a subsequent public question by the
2 political subdivision. If such a petition is submitted to the county
3 auditor and is signed by the lesser of:
4 (1) five hundred (500) persons who are either owners of property
5 within the political subdivision or registered voters residing
6 within the political subdivision; or
7 (2) five percent (5%) of the registered voters residing within the
8 political subdivision;
9 the limit under subsection (h)(2)(B) applies to the holding of a second
10 public question by the political subdivision and the limit under
11 subsection (h)(2)(A) does not apply to the holding of a second public
12 question by the political subdivision.
13 (n) At the request of a political subdivision that proposes to impose
14 property taxes to pay debt service on bonds or lease rentals on a lease
15 for a controlled project, the county auditor of a county in which the
16 political subdivision is located shall determine the estimated average
17 percentage of property tax increase on a homestead to be paid to the
18 political subdivision that must be included in the public question under
19 subsection (c) as follows:
20 STEP ONE: Determine the average assessed value of a homestead
21 located within the political subdivision.
22 STEP TWO: For purposes of determining the net assessed value
23 of the average homestead located within the political subdivision,
24 subtract:
25 (A) an amount for the homestead standard deduction under
26 IC 6-1.1-12-37 as if the homestead described in STEP ONE
27 was eligible for the deduction; and
28 (B) an amount for the supplemental homestead deduction
29 under IC 6-1.1-12-37.5 as if the homestead described in STEP
30 ONE was eligible for the deduction;
31 from the result of STEP ONE.
32 STEP THREE: Divide the result of STEP TWO by one hundred
33 (100).
34 STEP FOUR: Determine the overall average tax rate per one
35 hundred dollars ($100) of assessed valuation for the current year
36 imposed on property located within the political subdivision.
37 STEP FIVE: For purposes of determining net property tax liability
38 of the average homestead located within the political subdivision:
39 (A) multiply the result of STEP THREE by the result of STEP
40 FOUR; and
41 (B) as appropriate, apply any currently applicable county
42 property tax credit rates and the credit for excessive property
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1 taxes under IC 6-1.1-20.6-7.5(a)(1).
2 STEP SIX: Determine the amount of the political subdivision's
3 part of the result determined in STEP FIVE.
4 STEP SEVEN: Determine the estimated tax rate that will be
5 imposed if the public question is approved by the voters.
6 STEP EIGHT: Multiply the result of STEP SEVEN by the result
7 of STEP THREE.
8 STEP NINE: Divide the result of STEP EIGHT by the result of
9 STEP SIX, expressed as a percentage.
10 (o) At the request of a political subdivision that proposes to impose
11 property taxes to pay debt service on bonds or lease rentals on a lease
12 for a controlled project, the county auditor of a county in which the
13 political subdivision is located shall determine the estimated average
14 percentage of property tax increase on a business property to be paid
15 to the political subdivision that must be included in the public question
16 under subsection (c) as follows:
17 STEP ONE: Determine the average assessed value of business
18 property located within the political subdivision.
19 STEP TWO: Divide the result of STEP ONE by one hundred
20 (100).
21 STEP THREE: Determine the overall average tax rate per one
22 hundred dollars ($100) of assessed valuation for the current year
23 imposed on property located within the political subdivision.
24 STEP FOUR: For purposes of determining net property tax
25 liability of the average business property located within the
26 political subdivision:
27 (A) multiply the result of STEP TWO by the result of STEP
28 THREE; and
29 (B) as appropriate, apply any currently applicable county
30 property tax credit rates and the credit for excessive property
31 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
32 was three percent (3%).
33 STEP FIVE: Determine the amount of the political subdivision's
34 part of the result determined in STEP FOUR.
35 STEP SIX: Determine the estimated tax rate that will be imposed
36 if the public question is approved by the voters.
37 STEP SEVEN: Multiply the result of STEP TWO by the result of
38 STEP SIX.
39 STEP EIGHT: Divide the result of STEP SEVEN by the result of
40 STEP FIVE, expressed as a percentage.
41 (p) The county auditor shall certify the estimated average
42 percentage of property tax increase on a homestead to be paid to the
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1 political subdivision determined under subsection (n), and the
2 estimated average percentage of property tax increase on a business
3 property to be paid to the political subdivision determined under
4 subsection (o), in a manner prescribed by the department of local
5 government finance, and provide the certification to the political
6 subdivision that proposes to impose property taxes. The political
7 subdivision shall provide the certification to the county election board
8 and include the estimated average percentages in the language of the
9 public question at the time the language of the public question is
10 submitted to the county election board for approval as described in
11 subsection (c).
12 SECTION 22. IC 6-1.1-20-4.1 IS ADDED TO THE INDIANA
13 CODE AS A NEW SECTION TO READ AS FOLLOWS
14 [EFFECTIVE JULY 1, 2025]: Sec. 4.1. This section applies to all
15 school corporations. During the calendar year immediately
16 succeeding the final calendar year in which a school corporation's
17 previously approved controlled project referendum tax levy is
18 imposed under this chapter, the school corporation may not adopt
19 a resolution to place a referendum under this chapter on the ballot
20 or adopt a resolution to extend a referendum under this chapter.
21 SECTION 23. IC 6-1.1-20-4.3, AS ADDED BY P.L.136-2024,
22 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
23 JULY 1, 2025]: Sec. 4.3. (a) This section applies only if, with respect
24 to a particular controlled project that fulfilled the referendum process
25 under sections 3.5 and 3.6 of this chapter, the political subdivision
26 subsequently changes the scope of the controlled project beyond that
27 initially presented.
28 (b) Notwithstanding any other provision in this chapter, if at least
29 ten (10) persons who are either owners of property within the political
30 subdivision or registered voters residing within the political
31 subdivision file a petition with the proper officers of the political
32 subdivision contending that the scope of a controlled project has
33 changed from how it was initially presented, the proper officers of the
34 political subdivision shall hold a public hearing to determine whether
35 any change in scope is significant enough to warrant a new referendum
36 process. A petition under this subsection must be filed not later than
37 one (1) year after the controlled project received final approval.
38 (c) Notwithstanding any other provision in this chapter, if it is
39 determined at the hearing described in subsection (b) that the political
40 subdivision has subsequently changed the scope of a controlled project
41 beyond that initially presented as described in subsection (a), the
42 following procedures apply:
SB 1—LS 7244/DI 120 52
1 (1) A petition requesting the application of the local public
2 question process under this section may be filed using, and in
3 compliance with, the provisions that initially applied to the
4 particular controlled project under section 3.5 of this chapter. For
5 purposes of this subdivision, the relevant provisions in section 3.5
6 of this chapter shall be construed in a manner consistent with this
7 section.
8 (2) If a sufficient petition requesting the application of the local
9 public question process for purposes of this section has been filed
10 under subdivision (1), the following question shall be submitted
11 to the eligible voters at the election conducted under this section:
12 "On ______ (insert date) the voters approved a public question to
13 increase property taxes paid to the _______ (insert the type of
14 taxing unit) by homeowners and businesses. The political
15 subdivision has determined that the scope of the project for which
16 the pubic question was placed on the ballot has changed beyond
17 that initially presented. To fund the increase in the scope of the
18 project, the average property tax paid to the _______ (insert the
19 type of taxing unit) per year on a residence is estimated to
20 increase by ______% (insert the estimated average percentage of
21 property tax increase paid to the political subdivision on a
22 residence within the political subdivision) and the average
23 property tax paid to the _____ (insert the type of taxing unit) per
24 year on a business property would increase by ______% (insert
25 the estimated average percentage of property tax increase paid to
26 the political subdivision on a business property within the
27 political subdivision). Shall ________ (insert the name of the
28 political subdivision) increase property taxes paid to the _______
29 (insert the type of taxing unit) by homeowners and businesses to
30 fund the increase in the scope of the project previously approved?
31 If this public question is approved by the voters, the average
32 property tax paid to the _______ (insert the type of taxing unit)
33 per year on a residence would increase by ______% (insert the
34 estimated average percentage of property tax increase paid to the
35 political subdivision on a residence within the political
36 subdivision) and the average property tax paid to the _____
37 (insert the type of taxing unit) per year on a business property
38 would increase by ______% (insert the estimated average
39 percentage of property tax increase paid to the political
40 subdivision on a business property within the political
41 subdivision).".
42 "Shall ________ (insert the name of the political subdivision)
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1 increase property taxes paid to political subdivisions for no
2 more than ______ (insert the number of years immediately
3 following the holding of the referendum) for the purpose of
4 funding _______ (insert a brief description of the project use
5 or purpose) which is estimated to cost no more than _______
6 (insert the total cost of the project) and is estimated to
7 ________ (insert increase or decrease, whichever is
8 applicable) the property taxes paid to the political subdivision
9 by imposing a property tax rate that results in a maximum
10 annual amount that does not exceed ______ (insert maximum
11 amount of annual levy). If this public question is approved by
12 the voters, the property tax paid annually for a median
13 residence of __________ (insert the political subdivision's
14 median household assessed value) would increase by _______
15 per year (insert dollar amount).".
16 (3) The public question must appear on the ballot in the form
17 approved by the county election board. If the political subdivision
18 in which the particular controlled project is located in more than
19 one (1) county, the county election board of each county shall
20 jointly approve the form of the public question that will appear on
21 the ballot in each county. The form approved by the county
22 election board may differ from the language certified to the
23 county election board by the county auditor. If the county election
24 board approves the language of a public question under this
25 subsection, the county election board shall submit the language to
26 the department of local government finance for review.
27 (4) The department of local government finance shall review the
28 language of the public question to evaluate whether the
29 description of the controlled project is accurate and is not biased
30 against either a vote in favor of the controlled project or a vote
31 against the controlled project. The department of local
32 government finance may either approve the ballot language as
33 submitted or recommend that the ballot language be modified as
34 necessary to ensure that the description of the controlled project
35 is accurate and is not biased. The department of local government
36 finance shall certify its approval or recommendations to the
37 county auditor and the county election board not more than ten
38 (10) days after the language of the public question is submitted to
39 the department for review. If the department of local government
40 finance recommends a modification to the ballot language, the
41 county election board shall, after reviewing the recommendations
42 of the department of local government finance, submit modified
SB 1—LS 7244/DI 120 54
1 ballot language to the department for the department's approval
2 or recommendation of any additional modifications. The public
3 question may not be certified by the county auditor under
4 subdivision (5) unless the department of local government finance
5 has first certified the department's final approval of the ballot
6 language for the public question.
7 (5) The county auditor shall certify the finally approved public
8 question under IC 3-10-9-3 to the county election board of each
9 county in which the political subdivision is located. The
10 certification must occur not later than noon August 1.
11 (A) seventy-four (74) days before a primary election if the
12 public question is to be placed on the primary or municipal
13 primary election ballot; or
14 (B) August 1 if the public question is to be placed on the
15 general or municipal election ballot.
16 (6) The public question shall be placed on the ballot at the next
17 primary election, general election or municipal election in which
18 all voters of the political subdivision are entitled to vote.
19 However, if a primary election, general election, or municipal
20 election will not be held during the first year in which the public
21 question is eligible to be placed on the ballot under this section
22 and if the political subdivision requests the public question to be
23 placed on the ballot at a special election, the public question shall
24 be placed on the ballot at a special election to be held on the first
25 Tuesday after the first Monday in May or November of the year.
26 The certification must occur not later than noon seventy-four (74)
27 days before a special election to be held in May (if the special
28 election is to be held in May) or noon on August 1 (if the special
29 election is to be held in November). The fiscal body of the
30 political subdivision that requests the special election shall pay
31 the costs of holding the special election. The county election
32 board shall give notice under IC 5-3-1 of a special election
33 conducted under this subsection. A special election conducted
34 under this subsection is under the direction of the county election
35 board. The county election board shall take all steps necessary to
36 carry out the special election.
37 (7) The circuit court clerk shall certify the results of the public
38 question to the following:
39 (A) The county auditor of each county in which the political
40 subdivision is located.
41 (B) The department of local government finance.
42 (8) IC 3, to the extent not inconsistent with this section, applies to
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1 an election held under this section.
2 (9) If a majority of the eligible voters voting on the public
3 question vote in opposition to the public question, or if a petition
4 is not filed under subdivision (1), the political subdivision may
5 not proceed with the changed scope of the controlled project. In
6 that case, the political subdivision may either:
7 (A) proceed with the controlled project as it was initially
8 presented; or
9 (B) terminate the controlled project as it was initially
10 presented and initiate procedures for the controlled project that
11 reflects the change in scope.
12 (10) If a majority of the eligible voters voting on the public
13 question vote in favor of the public question, the political
14 subdivision may impose property taxes to fund the increase in the
15 scope of the controlled project previously approved.
16 SECTION 24. IC 6-1.1-20-4.6 IS ADDED TO THE INDIANA
17 CODE AS A NEW SECTION TO READ AS FOLLOWS
18 [EFFECTIVE JULY 1, 2025]: Sec. 4.6. Each year, the county
19 auditor, with cooperation from the department of local
20 government finance, shall determine the tax rate needed to raise
21 the maximum amount of the annual levy for the year as described
22 under section 3.6 and 4.3 of this chapter, as applicable, and
23 determine all other information needed for the ballot language in
24 those sections.
25 SECTION 25. IC 6-1.1-20.6-8.5, AS AMENDED BY P.L.239-2023,
26 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JANUARY 1, 2025 (RETROACTIVE)]: Sec. 8.5. (a) This section
28 applies to an individual who:
29 (1) qualified for a standard deduction granted under
30 IC 6-1.1-12-37 for the individual's homestead property in the
31 immediately preceding calendar year (or was married at the time
32 of death to a deceased spouse who qualified for a standard
33 deduction granted under IC 6-1.1-12-37 for the individual's
34 homestead property in the immediately preceding calendar year);
35 (2) qualifies for a standard deduction granted under
36 IC 6-1.1-12-37 for the same homestead property in the current
37 calendar year;
38 (3) is or will be at least sixty-five (65) years of age on or before
39 December 31 of the calendar year immediately preceding the
40 current calendar year; and
41 (4) had:
42 (A) in the case of an individual who filed a single return,
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1 adjusted gross income (as defined in Section 62 of the Internal
2 Revenue Code) not exceeding thirty thousand dollars
3 ($30,000), sixty thousand dollars ($60,000), and beginning
4 for the January 1, 2023, assessment date, and each assessment
5 date thereafter, adjusted annually by an amount equal to the
6 percentage cost of living increase applied for Social Security
7 benefits for the immediately preceding calendar year; or
8 (B) in the case of an individual who filed a joint income tax
9 return with the individual's spouse, combined adjusted gross
10 income (as defined in Section 62 of the Internal Revenue
11 Code) not exceeding forty thousand dollars ($40,000), seventy
12 thousand dollars ($70,000), and beginning for the January 1,
13 2023, assessment date, and each assessment date thereafter,
14 adjusted annually by an amount equal to the percentage cost
15 of living increase applied for Social Security benefits for the
16 immediately preceding calendar year;
17 for the calendar year preceding by two (2) years the calendar year
18 in which property taxes are first due and payable.
19 For purposes of applying the annual cost of living increases described
20 in subdivision (4)(A) and (4)(B), the annual percentage increase is
21 applied to the adjusted amount of income from the immediately
22 preceding year.
23 (b) Except as provided in subsection (g), this section does not apply
24 if:
25 (1) for an individual who received a credit under this section
26 before January 1, 2020, the gross assessed value of the homestead
27 on the assessment date for which property taxes are imposed is at
28 least two hundred thousand dollars ($200,000);
29 (2) for an individual who initially applies for a credit under this
30 section after December 31, 2019, and before January 1, 2023, the
31 assessed value of the individual's Indiana real property is at least
32 two hundred thousand dollars ($200,000); or
33 (3) for an individual who initially applies for a credit under this
34 section after December 31, 2022, and before January 1, 2025,
35 the assessed value of the individual's Indiana real property is at
36 least two hundred forty thousand dollars ($240,000); or
37 (4) for an individual who initially applies for a credit under
38 this section after December 31, 2024, the assessed value of the
39 individual's Indiana real property is at least three hundred
40 thousand dollars ($300,000), and beginning for the January 1,
41 2026, assessment date and each assessment date thereafter,
42 the amount shall be adjusted annually by a percentage equal
SB 1—LS 7244/DI 120 57
1 to the percentage increase, if any, as determined under
2 subsection (h).
3 (c) An individual is entitled to an additional credit under this section
4 for property taxes first due and payable for a calendar year on a
5 homestead if:
6 (1) the individual and the homestead qualify for the credit under
7 subsection (a) for the calendar year;
8 (2) the homestead is not disqualified for the credit under
9 subsection (b) for the calendar year; and
10 (3) the filing requirements under subsection (e) are met.
11 (d) The amount of the credit is equal to the greater of zero (0) or the
12 result of:
13 (1) the property tax liability first due and payable on the
14 homestead property for the calendar year; minus
15 (2) the result of:
16 (A) the property tax liability first due and payable on the
17 qualified homestead property for the immediately preceding
18 year after the application of the credit granted under this
19 section for that year; multiplied by
20 (B) one and two hundredths (1.02).
21 However, property tax liability imposed on any improvements to or
22 expansion of the homestead property after the assessment date for
23 which property tax liability described in subdivision (2) was imposed
24 shall not be considered in determining the credit granted under this
25 section in the current calendar year.
26 (e) Applications for a credit under this section shall be filed in the
27 manner provided for an application for a deduction under
28 IC 6-1.1-12-9. However, an individual who remains eligible for the
29 credit in the following year is not required to file a statement to apply
30 for the credit in the following year. An individual who receives a credit
31 under this section in a particular year and who becomes ineligible for
32 the credit in the following year shall notify the auditor of the county in
33 which the homestead is located of the individual's ineligibility not later
34 than sixty (60) days after the individual becomes ineligible.
35 (f) The auditor of each county shall, in a particular year, apply a
36 credit provided under this section to each individual who received the
37 credit in the preceding year unless the auditor determines that the
38 individual is no longer eligible for the credit.
39 (g) For purposes of determining the:
40 (1) assessed value of the homestead on the assessment date for
41 which property taxes are imposed under subsection (b)(1);
42 (2) assessed value of the individual's Indiana real property under
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1 subsection (b)(2); or
2 (3) assessed value of the individual's Indiana real property under
3 subsection (b)(3); or
4 (4) assessed value of the individual's Indiana real property
5 under subsection (b)(4);
6 for an individual who has received a credit under this section in a
7 previous year, increases in assessed value that occur after the later of
8 December 31, 2019, or the first year that the individual has received
9 the credit are not considered unless the increase in assessed value is
10 attributable to substantial renovation or new improvements. Where
11 there is an increase in assessed value for purposes of the credit under
12 this section, the assessor shall provide a report to the county auditor
13 describing the substantial renovation or new improvements, if any, that
14 were made to the property prior to the increase in assessed value.
15 (h) As used in this subsection, "median home sale price" means
16 the median home sale price as determined by the department of
17 local government finance for each month for Indiana using data
18 from the National Association of Realtors. The annual adjustment
19 under subsection (b)(4) is equal to the year over year change in:
20 (1) the year end average of the monthly median home sale
21 prices in Indiana statewide for the immediately preceding
22 calendar year before the assessment date; compared to
23 (2) the year end average of the monthly median home sale
24 prices in Indiana statewide for the calendar year preceding
25 the assessment date by two (2) years;
26 expressed as a percentage, but not less than zero (0). For purposes
27 of applying the annual adjustment under subsection (b)(4), the
28 annual percentage increase, if any, is applied to the adjusted
29 amount from the immediately preceding year.
30 SECTION 26. IC 6-1.1-22-3, AS AMENDED BY P.L.42-2011,
31 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JANUARY 1, 2026]: Sec. 3. (a) Except as provided in subsection (b),
33 the auditor of each county shall, before March 15 of each year, prepare
34 a roll of property taxes payable in that year for the county. This roll
35 shall be known as the "tax duplicate" and shall show:
36 (1) the value of all the assessed property of the county;
37 (2) the person liable for the taxes on the assessed property; and
38 (3) any other information that the state board of accounts, with the
39 advice and approval of the department of local government
40 finance, may prescribe.
41 (b) If the county auditor receives a copy of an appeal petition under
42 IC 6-1.1-18.5-12(g) before the county auditor completes preparation of
SB 1—LS 7244/DI 120 59
1 the tax duplicate under subsection (a), the county auditor shall
2 complete preparation of the tax duplicate when the appeal is resolved
3 by the department of local government finance.
4 (c) If the county auditor receives a copy of an appeal petition under
5 IC 6-1.1-18.5-12(g) after the county auditor completes preparation of
6 the tax duplicate under subsection (a), the county auditor shall prepare
7 a revised tax duplicate when the appeal is resolved by the department
8 of local government finance that reflects the action of the department.
9 (d) (b) The county auditor shall comply with the instructions issued
10 by the state board of accounts for the preparation, preservation,
11 alteration, and maintenance of the tax duplicate. The county auditor
12 shall deliver a copy of the tax duplicate prepared under subsection (a)
13 to the county treasurer when preparation of the tax duplicate is
14 completed.
15 SECTION 27. IC 6-1.1-30-20 IS ADDED TO THE INDIANA
16 CODE AS A NEW SECTION TO READ AS FOLLOWS
17 [EFFECTIVE UPON PASSAGE]: Sec. 20. (a) The department shall
18 develop and maintain a property tax transparency portal on the
19 department's current website through which taxpayers may:
20 (1) compare the property tax liability in their current tax
21 statement compared to their potential property tax liability
22 based on changes under a proposed tax rate; and
23 (2) provide taxpayer feedback to the department and local
24 units.
25 (b) The department shall make the portal available for taxpayer
26 use not later than January 1, 2026.
27 SECTION 28. IC 6-1.1-51.3 IS ADDED TO THE INDIANA CODE
28 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2025]:
30 Chapter 51.3. County Option Homestead Property Tax Deferral
31 Program
32 Sec. 1. As used in this chapter, "homestead" means a homestead
33 as defined in IC 6-1.1-12-37.
34 Sec. 2. As used in this chapter, "homestead property tax
35 liability" refers to a liability for property taxes:
36 (1) that are assessed on tangible property that is a homestead;
37 and
38 (2) that would be first due and payable in a certain year if the
39 property taxes were not deferred under this chapter.
40 The term refers to a property tax liability after the application of
41 all deductions and credits for which the homestead is eligible.
42 Sec. 3. As used in this chapter, "property taxes" refers to ad
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1 valorem property taxes. The term does not include fees or charges
2 that are included by law on a tax statement issued under
3 IC 6-1.1-22-8.1 or IC 6-1.1-22.5.
4 Sec. 4. As used in this chapter, "qualified individual" means an
5 individual who:
6 (1) has a qualified interest in a homestead on the assessment
7 date for which homestead property tax liability is imposed;
8 (2) has owned the homestead for at least five (5) years before
9 first applying for a deferral of homestead property tax
10 liability;
11 (3) uses the homestead in which the individual has a qualified
12 interest as the individual's principal place of residence. An
13 individual shall be treated as using a homestead as the
14 individual's principal place of residence if the individual:
15 (A) is absent from the homestead while in a health care
16 facility (as defined in IC 16-18-2-161 or IC 16-28-13-0.5)
17 for which payment is received from the United States
18 Department of Health and Human Services for the
19 individual's care; but
20 (B) used the homestead as the individual's principal place
21 of residence immediately before being admitted to a health
22 care facility (as defined in IC 16-18-2-161 or
23 IC 16-28-13-0.5);
24 (4) is not delinquent in the payment of any property taxes,
25 special assessments, or fees or charges that are included by
26 law on a tax statement issued under IC 6-1.1-22-8.1 or
27 IC 6-1.1-22.5; and
28 (5) meets any other qualifications that a county may choose to
29 require in an ordinance adopted under this chapter, which
30 may include:
31 (A) an age requirement for seniors;
32 (B) an assessed value limitation (such as an assessed value
33 limit of three hundred thousand dollars ($300,000));
34 (C) veteran status; or
35 (D) an income based limitation.
36 Sec. 5. As used in this chapter, "qualified interest" means the
37 following:
38 (1) An ownership interest in a homestead.
39 (2) An interest in a contract for the purchase of a homestead
40 that:
41 (A) is recorded in the county recorder's office; and
42 (B) provides that a person purchasing the homestead is to
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1 pay the property taxes on the homestead.
2 Sec. 6. (a) A county fiscal body may adopt an ordinance to
3 establish a homestead property tax deferral program to be
4 administered by the county treasurer as provided in this chapter.
5 (b) An ordinance adopted under this section must apply to all of
6 the territory of the county and allow a qualified individual to apply
7 for and receive deferral of the qualified individual's homestead
8 property tax liability as set forth in this chapter.
9 Sec. 7. (a) Beginning with property taxes first due and payable
10 in 2026, a qualified individual in a county with a homestead
11 property tax deferral program may apply to the county assessor to
12 defer the due date for the qualified individual's homestead
13 property tax liability as permitted under this chapter.
14 (b) A qualified individual may defer at least one hundred dollars
15 ($100), but not more than five hundred dollars ($500), of the
16 qualified individual's homestead property tax liability in a given
17 calendar year.
18 (c) Except as provided in subsections (d) and (f), amounts
19 deferred under this chapter for prior years may continue to
20 accumulate until the delayed due date under this chapter.
21 (d) A qualified individual may not defer more than ten thousand
22 dollars ($10,000) of the qualified individual's homestead property
23 tax liability over consecutive years.
24 (e) The county treasurer may accrue interest on a qualified
25 individual's deferred tax balance amount not to exceed four
26 percent (4%) beginning on the date of the deferral.
27 (f) No deferral of homestead property tax liability shall be
28 granted if the total amount of deferred taxes under this chapter
29 plus the total amount of all other liens on the homestead property
30 plus the outstanding principal on all mortgages on the homestead
31 property exceeds one hundred percent (100%) of the homestead's
32 assessed value.
33 Sec. 8. (a) Before October 1, 2025, the department of local
34 government finance shall prescribe and make available to the
35 public a tax deferral loan application and agreement that must be
36 used for purposes of this chapter.
37 (b) A qualified individual wishing to obtain a deferral of
38 homestead property tax liability for a calendar year must file with
39 the county auditor a completed loan application on or before
40 January 5 of the calendar year in which the property taxes are first
41 due and payable and enter into a tax deferral agreement with the
42 county auditor before March 1 of that year. Any recording fees
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1 required by a county recorder to file the application shall be paid
2 by the taxpayer.
3 (c) An application for a deferral must be filed with the county
4 auditor in the county where the homestead is located. Upon the
5 filing of an application, the county auditor shall immediately:
6 (1) notify the county treasurer and transmit the information
7 that the county treasurer needs to match the application with
8 the county treasurer's records related to the homestead; and
9 (2) review the application to determine:
10 (A) whether the applicant qualifies for a deferral; and
11 (B) the amount that may be deferred.
12 (d) After an initial application, an applicant remains eligible for
13 a deferral in subsequent years so long as the applicant continues to
14 meet the eligibility requirements for deferral under this chapter.
15 Sec. 9. (a) If the applicant is qualified for a deferral, the county
16 auditor shall:
17 (1) approve the deferral in the lesser of:
18 (A) the amount requested by the applicant, which may not
19 be less than one hundred dollars ($100); or
20 (B) the maximum amount, which is five hundred dollars
21 ($500);
22 (2) provide for the recording of the deferral in the county
23 recorder's office specifying the amount of property tax
24 deferred; and
25 (3) notify the county treasurer and the department of local
26 government finance of the amount deferred.
27 (b) An applicant must enter into a tax deferral agreement with
28 the county assessor for each year that homestead property taxes
29 are deferred under this chapter.
30 (c) The recording of a deferral in the county recorder's office
31 shall constitute a lien on the homestead property.
32 Sec. 10. (a) Property taxes deferred under this chapter are due
33 and payable one hundred eighty (180) days after the date on which
34 a deferral termination event occurs.
35 (b) Subject to subsection (c), a deferral termination event occurs
36 on the earlier of the following dates:
37 (1) The first date on which the qualified individual who had a
38 qualified interest in the homestead when the property taxes
39 were deferred:
40 (A) ceases to use the homestead as the individual's
41 principal place of residence as provided in section 4(3) of
42 this chapter; or
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1 (B) no longer has a qualified interest in the homestead.
2 (2) The date of the death of the qualified individual who had
3 a qualified interest in the homestead when property taxes
4 were deferred.
5 (c) This subsection applies only to a surviving spouse who was
6 not a qualified individual on the date on which property taxes were
7 deferred. If a deceased individual was a qualified individual on the
8 date on which property taxes were deferred, the deceased
9 individual's surviving spouse shall be treated after the deceased
10 individual's death as if the surviving spouse had been a qualified
11 individual on the date on which property taxes were deferred if:
12 (1) the homestead was the surviving spouse's principal place
13 of residence when the deceased qualified individual died; and
14 (2) the surviving spouse has a qualified interest in the
15 homestead not later than the later of:
16 (A) the date of the deceased individual's death; or
17 (B) the date on which the estate of the deceased individual
18 transfers any part of the ownership of the homestead from
19 the estate.
20 Sec. 11. Deferred property taxes and accrued interest may be
21 paid at any time on or before the delayed due date under section 10
22 of this chapter. Payment of deferred property taxes after the
23 delayed due date shall be collected in the same manner as
24 delinquent property taxes.
25 Sec. 12. (a) If a payment of deferred property taxes is made, the
26 county treasurer shall notify the county auditor, the county
27 recorder, and the department of local government finance on the
28 form and in the manner prescribed by the department of local
29 government finance. Notice to the county recorder must be in the
30 form of a release of the lien on the homestead for the deferred
31 property taxes.
32 (b) When payment of deferred property taxes is made, the
33 deferred property taxes shall be apportioned and distributed
34 among the respective funds of the taxing units in the same manner
35 as if the property taxes had been paid when initially due.
36 Sec. 13. Whenever an individual who is a qualified individual on
37 an assessment date for which property taxes were deferred:
38 (1) ceases to use the homestead as the individual's principal
39 place of residence as provided in section 4(3) of this chapter;
40 (2) ceases to have a qualified interest in the homestead; or
41 (3) changes the individual's qualified interest in the
42 homestead;
SB 1—LS 7244/DI 120 64
1 or a surviving spouse becomes a qualified individual, a person
2 responsible for paying the property taxes on the homestead shall
3 notify the county auditor in the county where the homestead is
4 located on the form and in the manner prescribed by the
5 department of local government finance. The county auditor shall
6 review the information filed under this section to determine
7 whether a deferral termination event has occurred.
8 Sec. 14. (a) If, as the result of the filing of information with the
9 county auditor or on the county auditor's own motion, the county
10 auditor determines that a deferral termination event has occurred,
11 the county auditor shall notify the county treasurer, the county
12 recorder, and the department of local government finance on the
13 form and in the manner prescribed by the department of local
14 government finance.
15 (b) A county auditor shall give written notice of each
16 determination under this chapter to the qualified individuals for
17 the affected homestead.
18 Sec. 15. The county recorder shall record the following without
19 charge in the miscellaneous records of the county recorder:
20 (1) A statement of the amount of property tax deferred.
21 (2) A statement of payment of deferred property taxes.
22 (3) A notice of termination of a deferral.
23 SECTION 29. IC 20-26-7-18, AS AMENDED BY P.L.250-2023,
24 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
25 JULY 1, 2025]: Sec. 18. Subject to IC 5-1-11.5, a school corporation
26 may issue and sell bonds under the general statutes governing the
27 issuance of bonds to purchase and improve buildings or lands, or both.
28 All laws relating to approval (if required) in a local public question
29 under IC 6-1.1-20, including the requirement that a local public
30 question may be placed on the ballot only at a general election, the
31 filing of petitions, remonstrances, and objecting petitions, giving
32 notices of the filing of petitions, the determination to issue bonds, and
33 the appropriation of the proceeds of the bonds are applicable to the
34 issuance of bonds under section 17 of this chapter.
35 SECTION 30. IC 20-46-1-8, AS AMENDED BY P.L.162-2024,
36 SECTION 25, AND AS AMENDED BY P.L.36-2024, SECTION 10,
37 AND AS AMENDED BY P.L.104-2024, SECTION 51, AND AS
38 AMENDED BY THE TECHNICAL CORRECTIONS BILL OF THE
39 2025 GENERAL ASSEMBLY, IS CORRECTED AND AMENDED
40 TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]: Sec. 8. (a)
41 Subject to subsections (e), (f), and (g) and this chapter, the governing
42 body of a school corporation may adopt a resolution to place a
SB 1—LS 7244/DI 120 65
1 referendum under this chapter on the ballot for any of the following
2 purposes:
3 (1) The governing body of the school corporation determines that
4 it cannot, in a calendar year, carry out its public educational duty
5 unless it imposes a referendum tax levy under this chapter.
6 (2) The governing body of the school corporation determines that
7 a referendum tax levy under this chapter should be imposed to
8 replace property tax revenue that the school corporation will not
9 receive because of the application of the credit under
10 IC 6-1.1-20.6.
11 (3) Except for resolutions described in subsection (b), the
12 governing body makes the determination required under
13 subdivision (1) or (2) and determines to share a portion of the
14 referendum proceeds with a charter school, excluding a virtual
15 charter school, in the manner prescribed in subsection (e).
16 (b) A resolution for a referendum for a county described in section
17 21 of this chapter that is adopted after May 10, 2023, shall specify that
18 a portion of the proceeds collected from the proposed levy will be
19 distributed to applicable charter schools in the manner described under
20 section 21 of this chapter.
21 (c) The governing body of the school corporation shall certify a
22 copy of the resolution to place a referendum on the ballot to the
23 following:
24 (1) The department of local government finance, including:
25 (A) the language for the question required by section 10 of this
26 chapter, or in the case of a resolution to extend a referendum
27 levy certified to the department of local government finance
28 after March 15, 2016, section 10.1 of this chapter; and
29 (B) a copy of the revenue spending plan adopted under
30 subsection (g).
31 The language of the public question must include the estimated
32 average percentage increases certified by the county auditor under
33 section 10(e) or 10.1(f) of this chapter, as applicable. The
34 governing body of the school corporation shall also provide the
35 county auditor's certification described in section 10(e) or 10.1(f)
36 of this chapter, as applicable. The department of local government
37 finance shall post the values certified by the county auditor to the
38 department's website. The department shall review the language
39 for compliance with section 10 or 10.1 of this chapter, whichever
40 is applicable, and either approve or reject the language. The
41 department shall send its decision to the governing body of the
42 school corporation not more than ten (10) days after both the
SB 1—LS 7244/DI 120 66
1 certification of the county auditor described in section 10(e) or
2 10.1(f) of this chapter, as applicable, and the resolution is are
3 submitted to the department. If the language is approved, the
4 governing body of the school corporation shall certify a copy of
5 the resolution, including the language for the question and the
6 department's approval.
7 (2) The county fiscal body of each county in which the school
8 corporation is located (for informational purposes only).
9 (3) The circuit court clerk of each county in which the school
10 corporation is located.
11 (d) If a school safety referendum tax levy under IC 20-46-9 has been
12 approved by the voters in a school corporation at any time in the
13 previous three (3) years, the school corporation may not:
14 (1) adopt a resolution to place a referendum under this chapter on
15 the ballot; or
16 (2) otherwise place a referendum under this chapter on the ballot.
17 (e) Except as provided in section 21 of this chapter, the resolution
18 described in subsection (a) must indicate whether proceeds in the
19 school corporation's education fund collected from a tax levy under this
20 chapter will be used to provide a distribution to a charter school or
21 charter schools, excluding a virtual charter school, under IC 20-40-3-5
22 as well as the amount that will be distributed to the particular charter
23 school or charter schools. A school corporation may request from the
24 designated charter school or charter schools any financial
25 documentation necessary to demonstrate the financial need of the
26 charter school or charter schools. Distribution to a charter school of
27 proceeds from a referendum held before May 10, 2023, does not
28 provide exemption from this chapter.
29 (f) This subsection applies to a resolution described in subsection
30 (a) for a county described in section 21(a) of this chapter that is
31 adopted after May 10, 2023. The resolution described in subsection (a)
32 shall include a projection of the amount that the school corporation
33 expects to be distributed to a particular charter school, excluding
34 virtual charter schools or adult high schools, under section 21 of this
35 chapter if the charter school voluntarily elects to participate in the
36 referendum in the manner described in subsection (i). At least sixty
37 (60) days before the resolution described in subsection (a) is voted on
38 by the governing body, the school corporation shall contact the
39 department to determine the number of students in kindergarten
40 through grade 12 who have legal settlement in the school corporation
41 but attend a charter school, excluding virtual charter schools or adult
42 high schools, and who receive not more than fifty percent (50%) virtual
SB 1—LS 7244/DI 120 67
1 instruction. The department shall provide the school corporation with
2 the number of students with legal settlement in the school corporation
3 who attend a charter school and who receive not more than fifty percent
4 (50%) virtual instruction, which shall be disaggregated for each
5 particular charter school, excluding a virtual charter school or adult
6 high school. The projection may include an expected increase in
7 charter schools during the term the levy is imposed under this chapter.
8 The department of local government finance shall prescribe the manner
9 in which the projection shall be calculated. The governing body shall
10 take into consideration the projection when adopting the revenue
11 spending plan under subsection (g).
12 (g) As part of the resolution described in subsection (a), the
13 governing body of the school corporation shall adopt a revenue
14 spending plan for the proposed referendum tax levy that includes:
15 (1) an estimate of the amount of annual revenue expected to be
16 collected if a levy is imposed under this chapter;
17 (2) the specific purposes for which the revenue collected from a
18 levy imposed under this chapter will be used;
19 (3) an estimate of the annual dollar amounts that will be expended
20 for each purpose described in subdivision (2); and
21 (4) for a resolution for a referendum that is adopted after May 10,
22 2023, for a county described in section 21(a) of this chapter, the
23 projected revenue that shall be distributed to charter schools as
24 provided in subsections (f) and (i). The revenue spending plan
25 shall also take into consideration deviations in the proposed
26 revenue spending plan if the actual charter school distributions
27 exceed or are lower than the projected charter school distributions
28 described in subsection (f). The resolution shall include for each
29 charter school that elects to participate under subsection (i)
30 information described in subdivisions (1) through (3).
31 (h) A school corporation shall specify in its proposed budget the
32 school corporation's revenue spending plan adopted under subsection
33 (g) and annually present the revenue spending plan at its public hearing
34 on the proposed budget under IC 6-1.1-17-3.
35 (i) This subsection applies to a resolution described in subsection
36 (a) for a county described in section 21(a) of this chapter that is
37 adopted after May 10, 2023. At least forty-five (45) days before the
38 resolution described in subsection (a) is voted on by the governing
39 body, the school corporation shall contact each charter school,
40 excluding virtual charter schools or adult high schools, disclosed by the
41 department to the school corporation under subsection (f) to determine
42 whether the charter school will participate in the referendum. The
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1 notice must include the total amount of the school corporation's
2 expected need, the corresponding estimate for that amount divided by
3 the number of students enrolled in the school corporation, and the date
4 on which the governing body of the school corporation will vote on the
5 resolution. The charter school must respond in writing to the school
6 corporation, which may be by electronic mail addressed to the
7 superintendent of the school corporation, at least fifteen (15) days
8 prior to the date that the resolution described in subsection (a) is to be
9 voted on by the governing body. If the charter school elects to not
10 participate in the referendum, the school corporation may exclude
11 distributions to the charter school under section 21 of this chapter and
12 from the projection described in subsection (f). If the charter school
13 elects to participate in the referendum, the charter school may receive
14 distributions under section 21 of this chapter and must be included in
15 the projection described in subsection (f). In addition, a charter school
16 that elects to participate in the referendum under this subsection shall
17 contribute a proportionate share of the cost to conduct the referendum
18 based on the total combined ADM of the school corporation and any
19 participating charter schools.
20 (j) This subsection applies to a resolution described in subsection
21 (a) for a county described in section 21(a) of this chapter that is
22 adopted after May 10, 2023. At least thirty (30) days before the
23 resolution described in subsection (a) referendum submitted to the
24 voters under this chapter is voted on by the governing body, public in
25 a primary or general election, the school corporation that is pursuing
26 the resolution referendum and any charter school that has elected to
27 participate under subsection (i) shall post a referendum disclosure
28 statement on each school's respective website that contains the
29 following information:
30 (1) The salaries of all employees employed by position within the
31 school corporation or charter school listed from highest salary to
32 lowest salary and a link to Gateway Indiana for access to
33 individual salaries.
34 (2) An acknowledgment that the school corporation or charter
35 school is not committing any crime described in IC 35-44.1-1.
36 (3) A link to the school corporation's or charter school's most
37 recent state board of accounts audit on the state board of accounts'
38 website.
39 (4) The current enrollment of the school corporation or charter
40 school disaggregated by student group and race.
41 (5) The school corporation's or charter school's high school
42 graduation rate.
SB 1—LS 7244/DI 120 69
1 (6) The school corporation's or charter school's annual retention
2 rate for teachers for the previous five (5) years.
3 SECTION 31. IC 20-46-1-10, AS AMENDED BY P.L.189-2023,
4 SECTION 32, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2025]: Sec. 10. (a) This section does not apply to a
6 referendum on a resolution certified to the department of local
7 government finance after March 15, 2016, to extend a referendum levy.
8 (b) The question to be submitted to the voters in the referendum
9 must read as follows:
10 "Shall the school corporation increase property taxes paid to
11 schools by homeowners and businesses for _____ (insert number
12 of years) years immediately following the holding of the
13 referendum for the purpose of funding ______ (insert short
14 description of purposes)? If this public question is approved by
15 the voters, the average property tax paid to schools per year on a
16 residence would increase by ______% (insert the estimated
17 average percentage of property tax increase paid to schools on a
18 residence within the school corporation as determined under
19 subsection (c)) and the average property tax paid to schools per
20 year on a business property would increase by ______% (insert
21 the estimated average percentage of property tax increase paid to
22 schools on a business property within the school corporation as
23 determined under subsection (d)). The most recent property tax
24 referendum proposed by the school corporation was held in
25 ______ (insert year) and ________ (insert whether the measure
26 passed or failed).".
27 "Shall ________ (insert the name of the school corporation)
28 increase property taxes paid to schools for no more than
29 ______ (insert the number of years immediately following the
30 holding of the referendum) for the purpose of funding
31 _______ (insert a brief description of the project use or
32 purpose) which is estimated to cost no more than _______
33 (insert the total cost of the project) and is estimated to
34 ________ (insert increase or decrease, whichever is
35 applicable) the property taxes paid to the school corporation
36 by imposing a property tax rate that results in a maximum
37 annual amount that does not exceed ______ (insert maximum
38 amount of annual levy).
39 If this public question is approved by the voters, the property
40 tax paid annually for a median residence of __________
41 (insert the school district's median household assessed value)
42 would increase by _______ per year (insert dollar amount).
SB 1—LS 7244/DI 120 70
1 (If, in the previous five (5) years, the school corporation has
2 conducted a public question, the following shall be included in
3 the ballot language.) The most recent property tax
4 referendum proposed by the school corporation was held in
5 ______ (insert year) and ________ (insert whether the
6 measure passed or failed).".
7 (c) At the request of the governing body of a school corporation that
8 proposes to impose property taxes under this chapter, the county
9 auditor of the county in which the school corporation is located shall
10 determine the estimated average percentage of property tax increase on
11 a homestead to be paid to schools that must be included in the public
12 question under subsection (b) as follows:
13 STEP ONE: Determine the average assessed value of a homestead
14 located within the school corporation.
15 STEP TWO: For purposes of determining the net assessed value
16 of the average homestead located within the school corporation,
17 subtract:
18 (A) an amount for the homestead standard deduction under
19 IC 6-1.1-12-37 as if the homestead described in STEP ONE
20 was eligible for the deduction; and
21 (B) an amount for the supplemental homestead deduction
22 under IC 6-1.1-12-37.5 as if the homestead described in STEP
23 ONE was eligible for the deduction;
24 from the result of STEP ONE.
25 STEP THREE: Divide the result of STEP TWO by one hundred
26 (100).
27 STEP FOUR: Determine the overall average tax rate per one
28 hundred dollars ($100) of assessed valuation for the current year
29 imposed on property located within the school corporation.
30 STEP FIVE: For purposes of determining net property tax liability
31 of the average homestead located within the school corporation:
32 (A) multiply the result of STEP THREE by the result of STEP
33 FOUR; and
34 (B) as appropriate, apply any currently applicable county
35 property tax credit rates and the credit for excessive property
36 taxes under IC 6-1.1-20.6-7.5(a)(1).
37 STEP SIX: Determine the amount of the school corporation's part
38 of the result determined in STEP FIVE.
39 STEP SEVEN: Multiply:
40 (A) the tax rate that will be imposed if the public question is
41 approved by the voters; by
42 (B) the result of STEP THREE.
SB 1—LS 7244/DI 120 71
1 STEP EIGHT: Divide the result of STEP SEVEN by the result of
2 STEP SIX, expressed as a percentage.
3 (d) At the request of the governing body of a school corporation that
4 proposes to impose property taxes under this chapter, the county
5 auditor of the county in which the school corporation is located shall
6 determine the estimated average percentage of property tax increase on
7 a business property to be paid to schools that must be included in the
8 public question under subsection (b) as follows:
9 STEP ONE: Determine the average assessed value of business
10 property located within the school corporation.
11 STEP TWO: Divide the result of STEP ONE by one hundred
12 (100).
13 STEP THREE: Determine the overall average tax rate per one
14 hundred dollars ($100) of assessed valuation for the current year
15 imposed on property located within the school corporation.
16 STEP FOUR: For purposes of determining net property tax
17 liability of the average business property located within the school
18 corporation:
19 (A) multiply the result of STEP TWO by the result of STEP
20 THREE; and
21 (B) as appropriate, apply any currently applicable county
22 property tax credit rates and the credit for excessive property
23 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
24 was three percent (3%).
25 STEP FIVE: Determine the amount of the school corporation's
26 part of the result determined in STEP FOUR.
27 STEP SIX: Multiply:
28 (A) the result of STEP TWO; by
29 (B) the tax rate that will be imposed if the public question is
30 approved by the voters.
31 STEP SEVEN: Divide the result of STEP SIX by the result of
32 STEP FIVE, expressed as a percentage.
33 (e) The county auditor shall certify the estimated average percentage
34 of property tax increase on a homestead to be paid to schools
35 determined under subsection (c), and the estimated average percentage
36 of property tax increase on a business property to be paid to schools
37 determined under subsection (d), in a manner prescribed by the
38 department of local government finance, and provide the certification
39 to the governing body of the school corporation that proposes to impose
40 property taxes.
41 SECTION 32. IC 20-46-1-10.1, AS AMENDED BY P.L.236-2023,
42 SECTION 154, IS AMENDED TO READ AS FOLLOWS
SB 1—LS 7244/DI 120 72
1 [EFFECTIVE JULY 1, 2025]: Sec. 10.1. (a) This section applies only
2 to a referendum to allow a school corporation to extend a referendum
3 levy.
4 (b) The question to be submitted to the voters in the referendum
5 must read as follows:
6 "Shall the school corporation continue to impose increased
7 property taxes paid to the school corporation by homeowners and
8 businesses for _____ (insert number of years) years immediately
9 following the holding of the referendum for the purpose of
10 funding ______ (insert short description of purposes)? The
11 property tax increase requested in this referendum was originally
12 approved by the voters in _______ (insert the year in which the
13 referendum tax levy was approved) and if extended will increase
14 the average property tax paid to the school corporation per year on
15 a residence within the school corporation by ______% (insert the
16 estimated average percentage of property tax increase on a
17 residence within the school corporation) and if extended will
18 increase the average property tax paid to the school corporation
19 per year on a business property within the school corporation by
20 ______% (insert the estimated average percentage of property tax
21 increase on a business within the school corporation).".
22 "Shall _______ (insert the name of the school corporation)
23 continue to increase property taxes paid to schools for no
24 more than _____ (insert the number of years immediately
25 following the holding of the referendum) for the purpose of
26 funding _____________ (insert short description of the
27 project use or purposes) which is estimated to _______ (insert
28 increase or decrease, whichever is applicable) the property
29 taxes paid to the school corporation by imposing a property
30 tax rate that results in a maximum annual amount that does
31 not exceed ______ (insert maximum amount of annual levy).
32 If this public question is approved by the voters, the property
33 tax paid annually for a median residence of __________
34 (insert the school district's median household assessed value)
35 would increase by _______ per year (insert dollar amount).
36 (If, in the previous five (5) years, the school corporation has
37 conducted a public question, the following shall be included in
38 the ballot language.) The most recent property tax
39 referendum proposed by the school corporation was held in
40 ______ (insert year) and ________ (insert whether the
41 measure passed or failed).".
42 (c) The number of years for which a referendum tax levy may be
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1 extended if the public question under this section is approved may not
2 exceed eight (8) years.
3 (d) At the request of the governing body of a school corporation that
4 proposes to impose property taxes under this chapter, the county
5 auditor of the county in which the school corporation is located shall
6 determine the estimated average percentage of property tax increase on
7 a homestead to be paid to the school corporation that must be included
8 in the public question under subsection (b) as follows:
9 STEP ONE: Determine the average assessed value of a homestead
10 located within the school corporation.
11 STEP TWO: For purposes of determining the net assessed value
12 of the average homestead located within the school corporation,
13 subtract:
14 (A) an amount for the homestead standard deduction under
15 IC 6-1.1-12-37 as if the homestead described in STEP ONE
16 was eligible for the deduction; and
17 (B) an amount for the supplemental homestead deduction
18 under IC 6-1.1-12-37.5 as if the homestead described in STEP
19 ONE was eligible for the deduction;
20 from the result of STEP ONE.
21 STEP THREE: Divide the result of STEP TWO by one hundred
22 (100).
23 STEP FOUR: Determine the overall average tax rate per one
24 hundred dollars ($100) of assessed valuation for the current year
25 imposed on property located within the school corporation.
26 STEP FIVE: For purposes of determining net property tax liability
27 of the average homestead located within the school corporation:
28 (A) multiply the result of STEP THREE by the result of STEP
29 FOUR; and
30 (B) as appropriate, apply any currently applicable county
31 property tax credit rates and the credit for excessive property
32 taxes under IC 6-1.1-20.6-7.5(a)(1).
33 STEP SIX: Determine the amount of the school corporation's part
34 of the result determined in STEP FIVE.
35 STEP SEVEN: Multiply:
36 (A) the tax rate that will be imposed if the public question is
37 approved by the voters; by
38 (B) the result of STEP THREE.
39 STEP EIGHT: Divide the result of STEP SEVEN by the result of
40 STEP SIX, expressed as a percentage.
41 (e) At the request of the governing body of a school corporation that
42 proposes to impose property taxes under this chapter, the county
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1 auditor of the county in which the school corporation is located shall
2 determine the estimated average percentage of property tax increase on
3 a business property to be paid to the school corporation that must be
4 included in the public question under subsection (b) as follows:
5 STEP ONE: Determine the average assessed value of business
6 property located within the school corporation.
7 STEP TWO: Divide the result of STEP ONE by one hundred
8 (100).
9 STEP THREE: Determine the overall average tax rate per one
10 hundred dollars ($100) of assessed valuation for the current year
11 imposed on property located within the school corporation.
12 STEP FOUR: For purposes of determining net property tax
13 liability of the average business property located within the school
14 corporation:
15 (A) multiply the result of STEP TWO by the result of STEP
16 THREE; and
17 (B) as appropriate, apply any currently applicable county
18 property tax credit rates and the credit for excessive property
19 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
20 was three percent (3%).
21 STEP FIVE: Determine the amount of the school corporation's
22 part of the result determined in STEP FOUR.
23 STEP SIX: Multiply:
24 (A) the result of STEP TWO; by
25 (B) the tax rate that will be imposed if the public question is
26 approved by the voters.
27 STEP SEVEN: Divide the result of STEP SIX by the result of
28 STEP FIVE, expressed as a percentage.
29 (f) The county auditor shall certify the estimated average percentage
30 of property tax increase on a homestead to be paid to the school
31 corporation determined under subsection (d), and the estimated average
32 percentage of property tax increase on a business property to be paid
33 to the school corporation determined under subsection (e), in a manner
34 prescribed by the department of local government finance, and provide
35 the certification to the governing body of the school corporation that
36 proposes to impose property taxes.
37 SECTION 33. IC 20-46-1-10.3 IS ADDED TO THE INDIANA
38 CODE AS A NEW SECTION TO READ AS FOLLOWS
39 [EFFECTIVE JULY 1, 2025]: Sec. 10.3. Each year, the county
40 auditor, with cooperation from the department of local
41 government finance, shall determine the tax rate needed to raise
42 the maximum amount of the annual levy for the year as described
SB 1—LS 7244/DI 120 75
1 under section 10 or 10.1 of this chapter, as applicable, and shall
2 determine all other information needed for the ballot language in
3 those sections.
4 SECTION 34. IC 20-46-1-14, AS AMENDED BY P.L.227-2023,
5 SECTION 135, IS AMENDED TO READ AS FOLLOWS
6 [EFFECTIVE JULY 1, 2025]: Sec. 14. (a) The referendum shall be
7 held in the next primary election general election, or municipal election
8 as provided under IC 3-10-9-3(b), in which all the registered voters
9 who are residents of the appellant school corporation are entitled to
10 vote after certification of the question. under IC 3-10-9-3. The
11 certification of the question must occur not later than noon
12 (1) seventy-four (74) days before a primary election if the
13 question is to be placed on the primary or municipal primary
14 election ballot; or
15 (2) August 1. if the question is to be placed on the general or
16 municipal election ballot.
17 (b) However, if a primary election, general election, or municipal
18 election will not be held during the first year in which the public
19 question is eligible to be placed on the ballot under this chapter and if
20 the appellant school corporation requests the public question to be
21 placed on the ballot at a special election, the public question shall be
22 placed on the ballot at a special election to be held on the first Tuesday
23 after the first Monday in May or November of the year. The
24 certification must occur not later than noon:
25 (1) seventy-four (74) days before a special election to be held in
26 May (if the special election is to be held in May); or
27 (2) on August 1 (if the special election is to be held in
28 November).
29 (c) If the referendum is not conducted at a primary election, general
30 election, or municipal election, the appellant school corporation in
31 which the referendum is to be held shall pay all the costs of holding the
32 referendum.
33 SECTION 35. IC 20-46-8-3, AS AMENDED BY P.L.156-2024,
34 SECTION 29, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
35 JULY 1, 2025]: Sec. 3. (a) This section applies to property tax levies
36 imposed before January 1, 2026.
37 (b) Subject to subsection (b), (c), a school corporation may appeal
38 to the department of local government finance under IC 6-1.1-19 to
39 increase the school corporation's maximum permissible operations fund
40 levy. The appeal must be filed with the department of local government
41 finance before October 20 of the year before the increase is proposed
42 to take effect. To be granted an increase by the department of local
SB 1—LS 7244/DI 120 76
1 government finance, the school corporation must establish that the
2 increase is necessary because of either or both of the following:
3 (1) A cost increase of at least ten percent (10%) over the
4 preceding year for at least one (1) of the following:
5 (A) A fuel expense increase.
6 (B) A cost increase due to an increase in the number of
7 students enrolled in the school corporation who need
8 transportation or an increase in the mileage traveled by the
9 school corporation's buses compared with the previous year.
10 (C) A cost increase due to an increase in the number of
11 students enrolled in special education who need transportation
12 or an increase in the mileage traveled by the school
13 corporation's buses due to students enrolled in special
14 education as compared with the previous year.
15 (D) Increased transportation operating costs due to compliance
16 with a court ordered desegregation plan.
17 (E) A cost increase due to the closure of a school building
18 within the school corporation that results in a significant
19 increase in the distances that students must be transported to
20 attend another school building.
21 (F) A cost increase due to restructuring or redesigning
22 transportation services due to a need for additional, expanded,
23 consolidated, or modified routes.
24 (G) A labor cost increase due to a labor shortage affecting the
25 school corporation's ability to hire qualified transportation
26 employees.
27 To obtain the increase, the school corporation must establish that
28 it will be unable to provide transportation services without an
29 increase.
30 (2) A cost increase associated with the school corporation's bus
31 replacement plan adopted or amended under IC 20-40-18-9 (after
32 December 31, 2018). To obtain the increase, the school
33 corporation must show that the school corporation must incur
34 reasonable and necessary expenses to acquire additional buses
35 under the plan.
36 The department of local government finance may grant a levy increase
37 that is less than the increase requested by the school corporation. If the
38 department of local government finance determines that a permanent
39 increase in the maximum permissible levy is necessary, the increase
40 granted under this section shall be added to the school corporation's
41 maximum permissible operations fund levy as provided in section 1 of
42 this chapter.
SB 1—LS 7244/DI 120 77
1 (b) (c) This subsection applies to a school corporation whose budget
2 for the upcoming year is subject to review by a fiscal body under
3 IC 6-1.1-17-20. A school corporation described in this subsection may
4 not submit an appeal under this section unless the school corporation
5 receives approval from the fiscal body to submit the appeal.
6 (d) This section expires December 31, 2026.
7 SECTION 36. IC 20-46-9-6, AS AMENDED BY P.L.162-2024,
8 SECTION 26, AND AS AMENDED BY P.L.156-2024, SECTION 30,
9 AND AS AMENDED BY THE TECHNICAL CORRECTIONS BILL
10 OF THE 2025 GENERAL ASSEMBLY, IS CORRECTED AND
11 AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2025]:
12 Sec. 6. (a) Subject to this chapter, the governing body of a school
13 corporation may adopt a resolution to place a referendum under this
14 chapter on the ballot if the governing body of the school corporation
15 determines that a referendum levy should be imposed for measures to
16 improve school safety as described in IC 20-40-20-6(a) or
17 IC 20-40-20-6(b).
18 (b) Except as provided in section 22 of this chapter, a school
19 corporation may, with the approval of the majority of members of the
20 governing body, distribute a portion of the proceeds of a tax levy
21 collected under this chapter that is deposited in the fund to a charter
22 school, excluding a virtual charter school, that is located within the
23 attendance area of the school corporation, to be used by the charter
24 school for the purposes described in IC 20-40-20-6(a).
25 (c) This subsection applies to a resolution described in subsection
26 (a) that is adopted after May 10, 2023, in a county described in section
27 22(a) of this chapter. A resolution shall specify that a portion of the
28 proceeds of the proposed levy will be distributed to applicable charter
29 schools in the manner described under section 22 of this chapter if the
30 charter school voluntarily elects to participate in the referendum in the
31 manner described in subsection (i).
32 (d) This subsection applies to a resolution described in subsection
33 (a) that is adopted after May 10, 2023, in a county described in section
34 22(a) of this chapter. The resolution described in subsection (a) shall
35 include a projection of the amount that the school corporation expects
36 to be distributed to a particular charter school, excluding virtual charter
37 schools or adult high schools, under section 22 of this chapter that
38 elects to participate in the referendum under subsection (i). At least
39 sixty (60) days before the resolution described in subsection (a) is
40 voted on by the governing body, the school corporation shall contact
41 the department to determine the number of students in kindergarten
42 through grade 12 who have legal settlement in the school corporation
SB 1—LS 7244/DI 120 78
1 but attend a charter school, excluding virtual charter schools or adult
2 high schools, and who receive not more than fifty percent (50%) virtual
3 instruction. The department shall provide the school corporation with
4 the number of students with legal settlement in the school corporation
5 who attend a charter school, which shall be disaggregated for each
6 particular charter school, excluding a virtual charter school or adult
7 high school. The projection may include an expected increase in
8 charter schools during the term the levy is imposed. The department of
9 local government finance shall prescribe the manner in which the
10 projection shall be calculated. The governing body shall take into
11 consideration the projection when adopting the revenue spending plan
12 under subsection (g).
13 (e) The governing body of the school corporation shall certify a
14 copy of the resolution to the following:
15 (1) The department of local government finance, including:
16 (A) the language for the question required by section 9 of this
17 chapter, or in the case of a resolution to extend a referendum
18 levy certified to the department of local government finance,
19 section 10 of this chapter; and
20 (B) a copy of the revenue spending plan adopted under
21 subsection (g).
22 The language of the public question must include the estimated
23 average percentage increases certified by the county auditor under
24 section 9(d) or 10(f) of this chapter, as applicable. The governing
25 body of the school corporation shall also provide the county
26 auditor's certification described in section 9(d) or 10(f) of this
27 chapter, as applicable. The department of local government
28 finance shall post the values certified by the county auditor to the
29 department's website. The department shall review the language
30 for compliance with section 9 or 10 of this chapter, whichever is
31 applicable, and either approve or reject the language. The
32 department shall send its decision to the governing body of the
33 school corporation not more than ten (10) days after both the
34 certification of the county auditor described in section 9(d) or
35 10(f) of this chapter, as applicable, and the resolution is are
36 submitted to the department. If the language is approved, the
37 governing body of the school corporation shall certify a copy of
38 the resolution, including the language for the question and the
39 department's approval.
40 (2) The county fiscal body of each county in which the school
41 corporation is located (for informational purposes only).
42 (3) The circuit court clerk of each county in which the school
SB 1—LS 7244/DI 120 79
1 corporation is located.
2 (f) Except as provided in section 22 of this chapter, the resolution
3 described in subsection (a) must indicate whether proceeds in the
4 school corporation's fund collected from a tax levy under this chapter
5 will be used to provide a distribution to a charter school or charter
6 schools, excluding a virtual charter school, under IC 20-40-20-6(b) as
7 well as the amount that will be distributed to the particular charter
8 school or charter schools. A school corporation may request from the
9 designated charter school or charter schools any financial
10 documentation necessary to demonstrate the financial need of the
11 charter school or charter schools.
12 (g) As part of the resolution described in subsection (a), the
13 governing body of the school corporation shall adopt a revenue
14 spending plan for the proposed referendum tax levy that includes:
15 (1) an estimate of the amount of annual revenue expected to be
16 collected if a levy is imposed under this chapter;
17 (2) the specific purposes described in IC 20-40-20-6 for which the
18 revenue collected from a levy imposed under this chapter will be
19 used;
20 (3) an estimate of the annual dollar amounts that will be expended
21 for each purpose described in subdivision (2); and
22 (4) for a resolution for a referendum that is adopted after May 10,
23 2023, for a county described in section 22(a) of this chapter, the
24 projected revenue that shall be distributed to charter schools as
25 provided in subsection (d). The revenue spending plan shall also
26 take into consideration deviations in the proposed revenue
27 spending plan if the actual charter school distributions exceed or
28 are lower than the projected charter school distributions described
29 in subsection (d). The resolution shall include for each charter
30 school that elects to participate under subsection (i) information
31 described in subdivisions (1) through (3).
32 (h) A school corporation shall specify in its proposed budget the
33 school corporation's revenue spending plan adopted under subsection
34 (g) and annually present the revenue spending plan at its public hearing
35 on the proposed budget under IC 6-1.1-17-3.
36 (i) This subsection applies to a resolution described in subsection
37 (a) for a county described in section 22(a) of this chapter that is
38 adopted after May 10, 2023. At least forty-five (45) days before the
39 resolution described in subsection (a) is voted on by the governing
40 body, the school corporation shall contact each charter school,
41 excluding virtual charter schools or adult high schools, disclosed by the
42 department to the school corporation under subsection (f) to determine
SB 1—LS 7244/DI 120 80
1 whether the charter school will participate in the referendum. The
2 notice must include the total amount of the school corporation's
3 expected need, the corresponding estimate of that amount divided by
4 the number of students enrolled in the school corporation, and the date
5 on which the governing body of the school corporation will vote on the
6 resolution. The charter school must respond in writing to the school
7 corporation, which may be by electronic mail addressed to the
8 superintendent of the school corporation, at least fifteen (15) days
9 prior to the date that the resolution described in subsection (a) is to be
10 voted on by the governing body. If the charter school elects to not
11 participate in the referendum, the school corporation may exclude
12 distributions to the charter school under section 22 of this chapter and
13 from the projection described in subsection (d). If the charter school
14 elects to participate in the referendum, the charter school may receive
15 distributions under section 22 of this chapter and must be included in
16 the projection described in subsection (d). In addition, a charter school
17 that elects to participate in the referendum under this subsection shall
18 contribute a proportionate share of the cost to conduct the referendum
19 based on the total combined ADM of the school corporation and any
20 participating charter schools.
21 (j) This subsection applies to a resolution described in subsection
22 (a) for a county described in section 22(a) of this chapter that is
23 adopted after May 10, 2023. At least thirty (30) days before the
24 resolution described in subsection (a) referendum submitted to the
25 voters under this chapter is voted on by the governing body, public in
26 a primary or general election, the school corporation that is pursuing
27 the resolution referendum and any charter school that has elected to
28 participate under subsection (i) shall post a referendum disclosure
29 statement on each school's respective website that contains the
30 following information:
31 (1) The salaries of all employees employed by position within the
32 school corporation or charter school listed from highest salary to
33 lowest salary and a link to Gateway Indiana for access to
34 individual salaries.
35 (2) An acknowledgment that the school corporation or charter
36 school is not committing any crime described in IC 35-44.1-1.
37 (3) A link to the school corporation's or charter school's most
38 recent state board of accounts audit on the state board of accounts'
39 website.
40 (4) The current enrollment of the school corporation or charter
41 school disaggregated by student group and race.
42 (5) The school corporation's or charter school's high school
SB 1—LS 7244/DI 120 81
1 graduation rate.
2 (6) The school corporation's or charter school's annual retention
3 rate for teachers for the previous five (5) years.
4 SECTION 37. IC 20-46-9-9, AS AMENDED BY P.L.189-2023,
5 SECTION 37, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JANUARY 1, 2026]: Sec. 9. (a) The question to be submitted to the
7 voters in the referendum must read as follows:
8 "Shall the school corporation increase property taxes paid to
9 schools by homeowners and businesses for _____ (insert number
10 of years) years immediately following the holding of the
11 referendum for the purpose of funding ______ (insert short
12 description of purposes)? If this public question is approved by
13 the voters, the average property tax paid to schools per year on a
14 residence would increase by ______% (insert the estimated
15 average percentage of property tax increase paid to schools on a
16 residence within the school corporation as determined under
17 subsection (b)) and the average property tax paid to schools per
18 year on a business property would increase by ______% (insert
19 the estimated average percentage of property tax increase paid to
20 schools on a business property within the school corporation as
21 determined under subsection (c)). The most recent property tax
22 referendum proposed by the school corporation was held in
23 ______ (insert year) and ________ (insert whether the measure
24 passed or failed).".
25 "Shall ________ (insert the name of the school corporation)
26 increase property taxes paid to schools for no more than
27 ______ (insert the number of years immediately following the
28 holding of the referendum) for the purpose of funding
29 _______ (insert a brief description of the project use or
30 purpose) which is estimated to cost no more than _______
31 (insert the total cost of the project) and is estimated to
32 ________ (insert increase or decrease, whichever is
33 applicable) the property taxes paid to the school corporation
34 by imposing a property tax rate that results in a maximum
35 annual amount that does not exceed ______ (insert maximum
36 amount of annual levy).
37 If this public question is approved by the voters, the property
38 tax paid annually for a median residence of __________
39 (insert the school district's median household assessed value)
40 would increase by _______ per year (insert dollar amount).
41 (If, in the previous five (5) years, the school corporation has
42 conducted a public question, the following shall be included in
SB 1—LS 7244/DI 120 82
1 the ballot language.) The most recent property tax
2 referendum proposed by the school corporation was held in
3 ______ (insert year) and ________ (insert whether the
4 measure passed or failed).".
5 (b) At the request of the governing body of a school corporation that
6 proposes to impose property taxes under this chapter, the county
7 auditor of the county in which the school corporation is located shall
8 determine the estimated average percentage of property tax increase on
9 a homestead to be paid to the school corporation that must be included
10 in the public question under subsection (a) as follows:
11 STEP ONE: Determine the average assessed value of a homestead
12 located within the school corporation.
13 STEP TWO: For purposes of determining the net assessed value
14 of the average homestead located within the school corporation,
15 subtract:
16 (A) an amount for the homestead standard deduction under
17 IC 6-1.1-12-37 as if the homestead described in STEP ONE
18 was eligible for the deduction; and
19 (B) an amount for the supplemental homestead deduction
20 under IC 6-1.1-12-37.5 as if the homestead described in STEP
21 ONE was eligible for the deduction;
22 from the result of STEP ONE.
23 STEP THREE: Divide the result of STEP TWO by one hundred
24 (100).
25 STEP FOUR: Determine the overall average tax rate per one
26 hundred dollars ($100) of assessed valuation for the current year
27 imposed on property located within the school corporation.
28 STEP FIVE: For purposes of determining net property tax liability
29 of the average homestead located within the school corporation:
30 (A) multiply the result of STEP THREE by the result of STEP
31 FOUR; and
32 (B) as appropriate, apply any currently applicable county
33 property tax credit rates and the credit for excessive property
34 taxes under IC 6-1.1-20.6-7.5(a)(1).
35 STEP SIX: Determine the amount of the school corporation's part
36 of the result determined in STEP FIVE.
37 STEP SEVEN: Multiply:
38 (A) the tax rate that will be imposed if the public question is
39 approved by the voters; by
40 (B) the result of STEP THREE.
41 STEP EIGHT: Divide the result of STEP SEVEN by the result of
42 STEP SIX, expressed as a percentage.
SB 1—LS 7244/DI 120 83
1 (c) At the request of the governing body of a school corporation that
2 proposes to impose property taxes under this chapter, the county
3 auditor of the county in which the school corporation is located shall
4 determine the estimated average percentage of property tax increase on
5 a business property to be paid to the school corporation that must be
6 included in the public question under subsection (a) as follows:
7 STEP ONE: Determine the average assessed value of business
8 property located within the school corporation.
9 STEP TWO: Divide the result of STEP ONE by one hundred
10 (100).
11 STEP THREE: Determine the overall average tax rate per one
12 hundred dollars ($100) of assessed valuation for the current year
13 imposed on property located within the school corporation.
14 STEP FOUR: For purposes of determining net property tax
15 liability of the average business property located within the school
16 corporation:
17 (A) multiply the result of STEP TWO by the result of STEP
18 THREE; and
19 (B) as appropriate, apply any currently applicable county
20 property tax credit rates and the credit for excessive property
21 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
22 was three percent (3%).
23 STEP FIVE: Determine the amount of the school corporation's
24 part of the result determined in STEP FOUR.
25 STEP SIX: Multiply:
26 (A) the result of STEP TWO; by
27 (B) the tax rate that will be imposed if the public question is
28 approved by the voters.
29 STEP SEVEN: Divide the result of STEP SIX by the result of
30 STEP FIVE, expressed as a percentage.
31 (d) The county auditor shall certify the estimated average
32 percentage of property tax increase on a homestead to be paid to
33 schools determined under subsection (b), and the estimated average
34 percentage of property tax increase on a business property to be paid
35 to schools determined under subsection (c), in a manner prescribed by
36 the department of local government finance, and provide the
37 certification to the governing body of the school corporation that
38 proposes to impose property taxes.
39 SECTION 38. IC 20-46-9-10, AS AMENDED BY P.L.236-2023,
40 SECTION 156, IS AMENDED TO READ AS FOLLOWS
41 [EFFECTIVE JANUARY 1, 2026]: Sec. 10. (a) This section applies
42 only to a referendum to allow a school corporation to extend a
SB 1—LS 7244/DI 120 84
1 referendum tax levy.
2 (b) The question to be submitted to the voters in the referendum
3 must read as follows:
4 "Shall the school corporation continue to impose increased
5 property taxes paid to the school corporation by homeowners and
6 businesses for _____ (insert number of years) years immediately
7 following the holding of the referendum for the purpose of
8 funding ______ (insert short description of purposes)? The
9 property tax increase requested in this referendum was originally
10 approved by the voters in _______ (insert the year in which the
11 referendum tax levy was approved) and if extended will increase
12 the average property tax paid to the school corporation per year on
13 a residence within the school corporation by ______% (insert the
14 estimated average percentage of property tax increase on a
15 residence within the school corporation) and if extended will
16 increase the average property tax paid to the school corporation
17 per year on a business property within the school corporation by
18 ______% (insert the estimated average percentage of property tax
19 increase on a business within the school corporation).".
20 "Shall _______ (insert the name of the school corporation)
21 continue to increase property taxes paid to schools for no
22 more than _____ (insert the number of years immediately
23 following the holding of the referendum) for the purpose of
24 funding _____________ (insert short description of the
25 project use or purposes) which is estimated to _______ (insert
26 increase or decrease, whichever is applicable) the property
27 taxes paid to the school corporation by imposing a property
28 tax rate that results in a maximum annual amount that does
29 not exceed ______ (insert maximum amount of annual levy).
30 If this public question is approved by the voters, the property
31 tax paid annually for a median residence of __________
32 (insert the school district's median household assessed value)
33 would increase by _______ per year (insert dollar amount).
34 (If, in the previous five (5) years, the school corporation has
35 conducted a public question, the following shall be included in
36 the ballot language.) The most recent property tax
37 referendum proposed by the school corporation was held in
38 ______ (insert year) and ________ (insert whether the
39 measure passed or failed).".
40 (c) The number of years for which a referendum tax levy may be
41 extended if the public question under this section is approved may not
42 exceed the number of years for which the expiring referendum tax levy
SB 1—LS 7244/DI 120 85
1 was imposed.
2 (d) At the request of the governing body of a school corporation that
3 proposes to impose property taxes under this chapter, the county
4 auditor of the county in which the school corporation is located shall
5 determine the estimated average percentage of property tax increase on
6 a homestead to be paid to the school corporation that must be included
7 in the public question under subsection (b) as follows:
8 STEP ONE: Determine the average assessed value of a homestead
9 located within the school corporation.
10 STEP TWO: For purposes of determining the net assessed value
11 of the average homestead located within the school corporation,
12 subtract:
13 (A) an amount for the homestead standard deduction under
14 IC 6-1.1-12-37 as if the homestead described in STEP ONE
15 was eligible for the deduction; and
16 (B) an amount for the supplemental homestead deduction
17 under IC 6-1.1-12-37.5 as if the homestead described in STEP
18 ONE was eligible for the deduction;
19 from the result of STEP ONE.
20 STEP THREE: Divide the result of STEP TWO by one hundred
21 (100).
22 STEP FOUR: Determine the overall average tax rate per one
23 hundred dollars ($100) of assessed valuation for the current year
24 imposed on property located within the school corporation.
25 STEP FIVE: For purposes of determining net property tax liability
26 of the average homestead located within the school corporation:
27 (A) multiply the result of STEP THREE by the result of STEP
28 FOUR; and
29 (B) as appropriate, apply any currently applicable county
30 property tax credit rates and the credit for excessive property
31 taxes under IC 6-1.1-20.6-7.5(a)(1).
32 STEP SIX: Determine the amount of the school corporation's part
33 of the result determined in STEP FIVE.
34 STEP SEVEN: Multiply:
35 (A) the tax rate that will be imposed if the public question is
36 approved by the voters; by
37 (B) the result of STEP THREE.
38 STEP EIGHT: Divide the result of STEP SEVEN by the result of
39 STEP SIX, expressed as a percentage.
40 (e) At the request of the governing body of a school corporation that
41 proposes to impose property taxes under this chapter, the county
42 auditor of the county in which the school corporation is located shall
SB 1—LS 7244/DI 120 86
1 determine the estimated average percentage of property tax increase on
2 a business property to be paid to the school corporation that must be
3 included in the public question under subsection (b) as follows:
4 STEP ONE: Determine the average assessed value of business
5 property located within the school corporation.
6 STEP TWO: Divide the result of STEP ONE by one hundred
7 (100).
8 STEP THREE: Determine the overall average tax rate per one
9 hundred dollars ($100) of assessed valuation for the current year
10 imposed on property located within the school corporation.
11 STEP FOUR: For purposes of determining net property tax
12 liability of the average business property located within the school
13 corporation:
14 (A) multiply the result of STEP TWO by the result of STEP
15 THREE; and
16 (B) as appropriate, apply any currently applicable county
17 property tax credit rates and the credit for excessive property
18 taxes under IC 6-1.1-20.6-7.5 as if the applicable percentage
19 was three percent (3%).
20 STEP FIVE: Determine the amount of the school corporation's
21 part of the result determined in STEP FOUR.
22 STEP SIX: Multiply:
23 (A) the result of STEP TWO; by
24 (B) the tax rate that will be imposed if the public question is
25 approved by the voters.
26 STEP SEVEN: Divide the result of STEP SIX by the result of
27 STEP FIVE, expressed as a percentage.
28 (f) The county auditor shall certify the estimated average percentage
29 of property tax increase on a homestead to be paid to the school
30 corporation determined under subsection (d), and the estimated average
31 percentage of property tax increase on a business property to be paid
32 to the school corporation determined under subsection (e), in a manner
33 prescribed by the department of local government finance, and provide
34 the certification to the governing body of the school corporation that
35 proposes to impose property taxes.
36 SECTION 39. IC 20-46-9-10.5 IS ADDED TO THE INDIANA
37 CODE AS A NEW SECTION TO READ AS FOLLOWS
38 [EFFECTIVE JULY 1, 2025]: Sec. 10.5. Each year, the county
39 auditor, with cooperation from the department of local
40 government finance, shall determine the tax rate needed to raise
41 the maximum amount of the annual levy for the year as described
42 under section 9 or 10 of this chapter, as applicable, and shall
SB 1—LS 7244/DI 120 87
1 determine all other information needed for the ballot language in
2 those sections.
3 SECTION 40. IC 20-46-9-14, AS AMENDED BY P.L.227-2023,
4 SECTION 136, IS AMENDED TO READ AS FOLLOWS
5 [EFFECTIVE JULY 1, 2025]: Sec. 14. (a) The referendum shall be
6 held in the next primary election general election, or municipal election
7 as provided under IC 3-10-9-3(b), in which all the registered voters
8 who are residents of the school corporation are entitled to vote after
9 certification of the question. under IC 3-10-9-3. The certification of the
10 question must occur not later than noon
11 (1) seventy-four (74) days before a primary election if the
12 question is to be placed on the primary or municipal primary
13 election ballot; or
14 (2) August 1. if the question is to be placed on the general or
15 municipal election ballot.
16 (b) However, if a primary election, general election, or municipal
17 election will not be held during the first year in which the public
18 question is eligible to be placed on the ballot under this chapter and if
19 the school corporation requests the public question to be placed on the
20 ballot at a special election, the public question shall be placed on the
21 ballot at a special election to be held on the first Tuesday after the first
22 Monday in May or November of the year. The certification must occur
23 not later than noon:
24 (1) seventy-four (74) days before a special election to be held in
25 May (if the special election is to be held in May); or
26 (2) August 1 (if the special election is to be held in November).
27 (c) If the referendum is not conducted at a primary election, general
28 election, or municipal election, the school corporation in which the
29 referendum is to be held shall pay all the costs of holding the
30 referendum.
31 SECTION 41. [EFFECTIVE JANUARY 1, 2026] (a)
32 IC 6-1.1-4-4.5, as amended by this act, applies to assessment dates
33 occurring after December 31, 2025.
34 (b) This SECTION expires January 1, 2028.
35 SECTION 42. [EFFECTIVE JANUARY 1, 2026] (a)
36 IC 6-1.1-18.5-12 and IC 6-1.1-18.5-13, both as amended by this act,
37 apply to property tax levies after December 31, 2025.
38 (b) IC 6-1.1-18.5-12 and IC 6-1.1-18.5-13, before their
39 amendment by this act, apply to property tax levies for 2025.
40 (c) This SECTION expires January 1, 2030.
41 SECTION 43. [EFFECTIVE JANUARY 1, 2025
42 (RETROACTIVE)] (a) IC 6-1.1-12-9, IC 6-1.1-12-14, and
SB 1—LS 7244/DI 120 88
1 IC 6-1.1-20.6-8.5, all as amended by this act, apply to assessment
2 dates occurring after December 31, 2024, for property taxes first
3 due and payable in 2026.
4 (b) IC 6-1.1-10.2 as added by this act, applies to assessment
5 dates occurring after December 31, 2024, for property taxes first
6 due and payable in 2026.
7 (c) This SECTION expires July 1, 2028.
8 SECTION 44. An emergency is declared for this act.
SB 1—LS 7244/DI 120 89
COMMITTEE REPORT
Mr. President: The Senate Committee on Tax and Fiscal Policy, to
which was referred Senate Bill No. 1, has had the same under
consideration and begs leave to report the same back to the Senate with
the recommendation that said bill be AMENDED as follows:
Delete everything after the enacting clause and insert the following:
(SEE TEXT OF BILL)
and when so amended that said bill do pass.
(Reference is to SB 1 as introduced.)
HOLDMAN, Chairperson
Committee Vote: Yeas 10, Nays 3.
SB 1—LS 7244/DI 120