LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6788 NOTE PREPARED: Dec 26, 2024
BILL NUMBER: SB 333 BILL AMENDED:
SUBJECT: State Loans for Property Tax Revenue Shortfall.
FIRST AUTHOR: Sen. Spencer BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill forgives loans made to certain qualified taxing units in Lake County. It
urges the Legislative Council to assign to the appropriate interim study committee during the 2025 legislative
interim the task of studying whether to create an insurance fund to be used to make payments to political
subdivisions that issue refunds for the overpayment of property taxes to political subdivisions as a result of
successful property tax appeals.
Effective Date: Upon passage; July 1, 2025.
Explanation of State Expenditures: Study Topic: The Legislative Council could assign the topic to an
existing interim study committee or establish a new interim study committee to study this topic during the
next interim. Interim study committees operate on budgets established by the Legislative Council based on
committee size. Legislative Council resolutions in the past have established budgets for interim study
committees in the amount of $13,500 per interim for committees with fewer than 16 members and $17,500
for committees with 16 members or more. If the Legislative Council were to assign this topic to an existing
committee and the committee were to have any extra meetings to address this topic, there would be additional
expenditures for legislator per diem and travel reimbursement for the committee members. Any additional
expenditures must be within the committee’s budget.
Explanation of State Revenues:
Explanation of Local Expenditures: This bill’s provisions would result in a decrease in expenditures for
certain units in Lake County. This bill forgives the loans made from the state’s Rainy Day Fund to the City
of Hobart and the Merrillville Community School Corporation in order to pay a property tax judgment from
the 2011 through 2014 assessment years. As of December 22, 2024, the City of Hobart had an outstanding
loan balance of approximately $11.2 M, and the Merrillville Community School Corporation had an
outstanding loan balance of approximately $8.4 M.
Explanation of Local Revenues:
SB 333 1 State Agencies Affected: Legislative Council.
Local Agencies Affected: City of Hobart and Merrillville Community School Corporation in Lake County.
Information Sources: State Budget Agency Fund Balance Data.
Fiscal Analyst: James Johnson, 317-232-9869.
SB 333 2