LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7155 NOTE PREPARED: Jan 8, 2025
BILL NUMBER: SB 8 BILL AMENDED:
SUBJECT: School Levy Referenda.
FIRST AUTHOR: Sen. Buchanan BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: Ballot: This bill provides that:
(1) a referendum authorizing a school corporation to impose property taxes to pay debt service on
bonds or lease rentals on a lease for a specified controlled project;
(2) a school corporation operating referendum tax levy; or
(3) a school corporation school safety referendum tax levy;
may be placed on the ballot only at a primary election conducted in a general election year or a general
election.
Extension: This bill provides that a school corporation may not adopt a resolution to place an operating
referendum or school safety referendum on the ballot during the calendar year after the final calendar year
in which a previously approved operating referendum levy or school safety referendum levy is imposed.
Public Question: The bill also provides that in a local public question, a school corporation must provide the
total amount of property tax revenue expected to be collected each year.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Ballot: The Election Division may need to update election publications
and informational materials to inform of the bill’s proposed changes. It is likely any needed revisions would
be able to be incorporated during the publication of next year’s informational materials within existing
resources as a routine matter of business.
Explanation of State Revenues:
Explanation of Local Expenditures: Ballot: It is likely this bill would amount to little change to local
election expenditures when a school corporation referendum is placed on the ballot in a year of a general
election. Currently, public questions regarding property tax levies may be placed on the ballot of a general
election, municipal election, or primary election. A special election may be held at the taxing unit’s expense.
This bill will restrict public questions regarding school capital projects, school operating, and school safety
SB 8 1 levies to general elections or a to a primary election held in the year of a general election.
Under this bill, school corporations that would have otherwise requested a special election will save the cost
of the special election. In some cases, this bill will delay a vote on the question. Construction and borrowing
costs could be affected by a delay.
Explanation of Local Revenues: Extension: The bill prohibits adoption of a resolution regarding a school
operating or safety referendum, or placement on the ballot, in the year after the final year of a referendum
levy. Currently, a resolution to extend a referendum levy must be adopted and approved by the voters by the
end of the final year of the current levy. The bill extends the deadline to the end of the second year following
the final year of the current levy. If a school corporation that wishes to impose a new referendum levy has
not held the referendum by the final year of the current referendum levy, then the school corporation must
wait an additional year to act.
Public Question: Under current law, the public question for a school operating or safety referendum specifies
the duration in years and the purpose of the referendum as well as an estimated percentage increase in the
school property tax paid by homeowners and businesses. This provision will also add a maximum annual levy
amount to the question.
In practice, operating and safety referendum levies are subject to a maximum tax rate often specified in the
resolution. If imposed, the maximum tax rate generates an increasing levy amount each year as net assessed
value rises. The addition of a maximum levy amount will restrict this yearly levy increase.
State Agencies Affected: Indiana Secretary of State, Election Division.
Local Agencies Affected: Counties; School corporations.
Information Sources:
Fiscal Analyst: Bob Sigalow, 317-232-9859.
SB 8 2