Indiana 2025 Regular Session

Indiana Senate Bill SB0315 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 315
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-18.5-2.
7	7	Synopsis: Maximum levy growth quotient cap. Extends the calculation
8	8	used to determine the maximum levy growth quotient added by HEA
9	9	1499-2023 to 2026.
10	10	Effective: Upon passage.
11	11	Baldwin
12	12	January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
13	13	2025 IN 315—LS 7440/DI 120 Introduced
14	14	First Regular Session of the 124th General Assembly (2025)
15	15	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
16	16	Constitution) is being amended, the text of the existing provision will appear in this style type,
17	17	additions will appear in this style type, and deletions will appear in this style type.
18	18	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
19	19	provision adopted), the text of the new provision will appear in this style type. Also, the
20	20	word NEW will appear in that style type in the introductory clause of each SECTION that adds
21	21	a new provision to the Indiana Code or the Indiana Constitution.
22	22	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
23	23	between statutes enacted by the 2024 Regular Session of the General Assembly.
24	24	SENATE BILL No. 315
25	25	A BILL FOR AN ACT to amend the Indiana Code concerning
26	26	taxation.
27	27	Be it enacted by the General Assembly of the State of Indiana:
28	28	1 SECTION 1. IC 6-1.1-18.5-2, AS AMENDED BY P.L.239-2023,
29	29	2 SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30	30	3 UPON PASSAGE]: Sec. 2. (a) As used in this section, "Indiana
31	31	4 nonfarm personal income" means the estimate of total nonfarm
32	32	5 personal income for Indiana in a calendar year as computed by the
33	33	6 federal Bureau of Economic Analysis using any actual data for the
34	34	7 calendar year and any estimated data determined appropriate by the
35	35	8 federal Bureau of Economic Analysis.
36	36	9 (b) Except as provided in subsections (c) and (e), for purposes of
37	37	10 determining a civil taxing unit's maximum permissible ad valorem
38	38	11 property tax levy for an ensuing calendar year, the civil taxing unit
39	39	12 shall use the maximum levy growth quotient determined in the last
40	40	13 STEP of the following STEPS:
41	41	14 STEP ONE: For each of the six (6) calendar years immediately
42	42	15 preceding the year in which a budget is adopted under
43	43	16 IC 6-1.1-17-5 for the ensuing calendar year, divide the Indiana
44	44	17 nonfarm personal income for the calendar year by the Indiana
45	45	2025 IN 315—LS 7440/DI 120 2
46	46	1 nonfarm personal income for the calendar year immediately
47	47	2 preceding that calendar year, rounding to the nearest
48	48	3 one-thousandth (0.001).
49	49	4 STEP TWO: Determine the sum of the STEP ONE results.
50	50	5 STEP THREE: Divide the STEP TWO result by six (6), rounding
51	51	6 to the nearest one-thousandth (0.001).
52	52	7 STEP FOUR: Determine the lesser of the following:
53	53	8 (A) The STEP THREE quotient.
54	54	9 (B) One and six-hundredths (1.06).
55	55	10 (c) Except as provided in subsection (f), a school corporation shall
56	56	11 use for its operations fund maximum levy calculation under
57	57	12 IC 20-46-8-1 the maximum levy growth quotient determined in the last
58	58	13 STEP of the following STEPS:
59	59	14 STEP ONE: Determine for each school corporation, the average
60	60	15 annual growth in net assessed value using the three (3) calendar
61	61	16 years immediately preceding the year in which a budget is
62	62	17 adopted under IC 6-1.1-17-5 for the ensuing calendar year.
63	63	18 STEP TWO: Determine the greater of:
64	64	19 (A) zero (0); or
65	65	20 (B) the STEP ONE amount minus the sum of:
66	66	21 (i) the maximum levy growth quotient determined under
67	67	22 subsection (b) minus one (1); plus
68	68	23 (ii) two-hundredths (0.02).
69	69	24 STEP THREE: Determine the lesser of:
70	70	25 (A) the STEP TWO amount; or
71	71	26 (B) four-hundredths (0.04).
72	72	27 STEP FOUR: Determine the sum of:
73	73	28 (A) the STEP THREE amount; plus
74	74	29 (B) the maximum levy growth quotient determined under
75	75	30 subsection (b).
76	76	31 STEP FIVE: Determine the greater of:
77	77	32 (A) the STEP FOUR amount; or
78	78	33 (B) the maximum levy growth quotient determined under
79	79	34 subsection (b).
80	80	35 (d) The budget agency shall provide the maximum levy growth
81	81	36 quotient for the ensuing year to civil taxing units, school corporations,
82	82	37 and the department of local government finance before July 1 of each
83	83	38 year.
84	84	39 (e) This subsection applies only for purposes of determining the
85	85	40 maximum levy growth quotient to be used in determining a civil taxing
86	86	41 unit's maximum permissible ad valorem property tax levy in calendar
87	87	42 years 2024, and 2025, and 2026. For purposes of determining the
88	88	2025 IN 315—LS 7440/DI 120 3
89	89	1 maximum levy growth quotient in calendar years 2024, and 2025, and
90	90	2 2026, instead of the result determined in the last STEP in subsection
91	91	3 (b), the maximum levy growth quotient is determined in the last STEP
92	92	4 of the following STEPS:
93	93	5 STEP ONE: Determine the result of STEP FOUR of subsection
94	94	6 (b), calculated as if this subsection was not in effect.
95	95	7 STEP TWO: Subtract one (1) from the STEP ONE result.
96	96	8 STEP THREE: Multiply the STEP TWO result by eight-tenths
97	97	9 (0.8).
98	98	10 STEP FOUR: Add one (1) to the STEP THREE result.
99	99	11 STEP FIVE: Determine the lesser of:
100	100	12 (A) the STEP FOUR result; or
101	101	13 (B) one and four-hundredths (1.04).
102	102	14 (f) This subsection applies only for purposes of determining the
103	103	15 maximum levy growth quotient to be used in determining a school
104	104	16 corporation's operations fund maximum levy in calendar years 2024,
105	105	17 and 2025, and 2026. For purposes of determining the maximum levy
106	106	18 growth quotient in calendar years 2024, and 2025, and 2026, instead
107	107	19 of the result determined in the last STEP in subsection (c), the
108	108	20 maximum levy growth quotient is determined in the last STEP of the
109	109	21 following STEPS:
110	110	22 STEP ONE: Determine the result of STEP FIVE of subsection (c),
111	111	23 calculated as if this subsection was not in effect.
112	112	24 STEP TWO: Subtract one (1) from the STEP ONE result.
113	113	25 STEP THREE: Multiply the STEP TWO result by eight-tenths
114	114	26 (0.8).
115	115	27 STEP FOUR: Add one (1) to the STEP THREE result.
116	116	28 STEP FIVE: Determine the lesser of:
117	117	29 (A) the STEP FOUR result; or
118	118	30 (B) one and four-hundredths (1.04).
119	119	31 SECTION 2. An emergency is declared for this act.
120	120	2025 IN 315—LS 7440/DI 120