LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6648 NOTE PREPARED: Dec 19, 2024
BILL NUMBER: SB 253 BILL AMENDED:
SUBJECT: Economic Revitalization Area Designations.
FIRST AUTHOR: Sen. Deery BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill adds conditions related to soil productivity and use of land for an
agricultural purpose that must be found by a designating body before land classified as agricultural land for
property tax purposes may be included within an area sought to be designated as an economic revitalization
area (ERA).
Effective Date: July 1, 2025.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Beginning July 1, 2025, under this bill, farmland with an average
combined soil productivity factor, taking into account the application of any influence factor, that is at least
1.0 will not be eligible for inclusion in an ERA unless the ERA will be predominantly used for an agricultural
purpose. As such, the property will be ineligible for any ERA property tax abatements if the ERA is not
predominantly agricultural in nature. About 38.2% of farm acreage has a combined soil
productivity/influence factor equal to 1.0 or above. This bill could affect future changes in the gross and net
assessed value of certain farmland that may have been considered for inclusion in an ERA.
State Agencies Affected:
Local Agencies Affected: County and municipal ERA designating bodies.
Information Sources: LSA Property Tax Database.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
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