Introduced Version
SENATE BILL No. 315
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-18.5-2.
Synopsis: Maximum levy growth quotient cap. Extends the calculation
used to determine the maximum levy growth quotient added by HEA
1499-2023 to 2026.
Effective: Upon passage.
Baldwin
January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025 IN 315—LS 7440/DI 120 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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SENATE BILL No. 315
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 6-1.1-18.5-2, AS AMENDED BY P.L.239-2023,
2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 UPON PASSAGE]: Sec. 2. (a) As used in this section, "Indiana
4 nonfarm personal income" means the estimate of total nonfarm
5 personal income for Indiana in a calendar year as computed by the
6 federal Bureau of Economic Analysis using any actual data for the
7 calendar year and any estimated data determined appropriate by the
8 federal Bureau of Economic Analysis.
9 (b) Except as provided in subsections (c) and (e), for purposes of
10 determining a civil taxing unit's maximum permissible ad valorem
11 property tax levy for an ensuing calendar year, the civil taxing unit
12 shall use the maximum levy growth quotient determined in the last
13 STEP of the following STEPS:
14 STEP ONE: For each of the six (6) calendar years immediately
15 preceding the year in which a budget is adopted under
16 IC 6-1.1-17-5 for the ensuing calendar year, divide the Indiana
17 nonfarm personal income for the calendar year by the Indiana
2025 IN 315—LS 7440/DI 120 2
1 nonfarm personal income for the calendar year immediately
2 preceding that calendar year, rounding to the nearest
3 one-thousandth (0.001).
4 STEP TWO: Determine the sum of the STEP ONE results.
5 STEP THREE: Divide the STEP TWO result by six (6), rounding
6 to the nearest one-thousandth (0.001).
7 STEP FOUR: Determine the lesser of the following:
8 (A) The STEP THREE quotient.
9 (B) One and six-hundredths (1.06).
10 (c) Except as provided in subsection (f), a school corporation shall
11 use for its operations fund maximum levy calculation under
12 IC 20-46-8-1 the maximum levy growth quotient determined in the last
13 STEP of the following STEPS:
14 STEP ONE: Determine for each school corporation, the average
15 annual growth in net assessed value using the three (3) calendar
16 years immediately preceding the year in which a budget is
17 adopted under IC 6-1.1-17-5 for the ensuing calendar year.
18 STEP TWO: Determine the greater of:
19 (A) zero (0); or
20 (B) the STEP ONE amount minus the sum of:
21 (i) the maximum levy growth quotient determined under
22 subsection (b) minus one (1); plus
23 (ii) two-hundredths (0.02).
24 STEP THREE: Determine the lesser of:
25 (A) the STEP TWO amount; or
26 (B) four-hundredths (0.04).
27 STEP FOUR: Determine the sum of:
28 (A) the STEP THREE amount; plus
29 (B) the maximum levy growth quotient determined under
30 subsection (b).
31 STEP FIVE: Determine the greater of:
32 (A) the STEP FOUR amount; or
33 (B) the maximum levy growth quotient determined under
34 subsection (b).
35 (d) The budget agency shall provide the maximum levy growth
36 quotient for the ensuing year to civil taxing units, school corporations,
37 and the department of local government finance before July 1 of each
38 year.
39 (e) This subsection applies only for purposes of determining the
40 maximum levy growth quotient to be used in determining a civil taxing
41 unit's maximum permissible ad valorem property tax levy in calendar
42 years 2024, and 2025, and 2026. For purposes of determining the
2025 IN 315—LS 7440/DI 120 3
1 maximum levy growth quotient in calendar years 2024, and 2025, and
2 2026, instead of the result determined in the last STEP in subsection
3 (b), the maximum levy growth quotient is determined in the last STEP
4 of the following STEPS:
5 STEP ONE: Determine the result of STEP FOUR of subsection
6 (b), calculated as if this subsection was not in effect.
7 STEP TWO: Subtract one (1) from the STEP ONE result.
8 STEP THREE: Multiply the STEP TWO result by eight-tenths
9 (0.8).
10 STEP FOUR: Add one (1) to the STEP THREE result.
11 STEP FIVE: Determine the lesser of:
12 (A) the STEP FOUR result; or
13 (B) one and four-hundredths (1.04).
14 (f) This subsection applies only for purposes of determining the
15 maximum levy growth quotient to be used in determining a school
16 corporation's operations fund maximum levy in calendar years 2024,
17 and 2025, and 2026. For purposes of determining the maximum levy
18 growth quotient in calendar years 2024, and 2025, and 2026, instead
19 of the result determined in the last STEP in subsection (c), the
20 maximum levy growth quotient is determined in the last STEP of the
21 following STEPS:
22 STEP ONE: Determine the result of STEP FIVE of subsection (c),
23 calculated as if this subsection was not in effect.
24 STEP TWO: Subtract one (1) from the STEP ONE result.
25 STEP THREE: Multiply the STEP TWO result by eight-tenths
26 (0.8).
27 STEP FOUR: Add one (1) to the STEP THREE result.
28 STEP FIVE: Determine the lesser of:
29 (A) the STEP FOUR result; or
30 (B) one and four-hundredths (1.04).
31 SECTION 2. An emergency is declared for this act.
2025 IN 315—LS 7440/DI 120