Indiana 2025 Regular Session

Indiana Senate Bill SB0340 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. 340
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-51.
7	7	Synopsis: Maximum increase of homestead property tax bill. Caps the
8	8	year over year increase of property tax liability on a homestead at 2%.
9	9	Effective: January 1, 2025 (retroactive).
10	10	Young M
11	11	January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
12	12	2025 IN 340—LS 7221/DI 125 Introduced
13	13	First Regular Session of the 124th General Assembly (2025)
14	14	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
15	15	Constitution) is being amended, the text of the existing provision will appear in this style type,
16	16	additions will appear in this style type, and deletions will appear in this style type.
17	17	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
18	18	provision adopted), the text of the new provision will appear in this style type. Also, the
19	19	word NEW will appear in that style type in the introductory clause of each SECTION that adds
20	20	a new provision to the Indiana Code or the Indiana Constitution.
21	21	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
22	22	between statutes enacted by the 2024 Regular Session of the General Assembly.
23	23	SENATE BILL No. 340
24	24	A BILL FOR AN ACT to amend the Indiana Code concerning
25	25	taxation.
26	26	Be it enacted by the General Assembly of the State of Indiana:
27	27	1 SECTION 1. IC 6-1.1-51 IS ADDED TO THE INDIANA CODE
28	28	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
29	29	3 JANUARY 1, 2025 (RETROACTIVE)]:
30	30	4 Chapter 51. Maximum Increase in Property Tax Liability
31	31	5 Sec. 1. This chapter applies to taxes first due and payable after
32	32	6 December 31, 2024.
33	33	7 Sec. 2. As used in this chapter, "homestead" has the meaning set
34	34	8 forth in IC 6-1.1-12-37.
35	35	9 Sec. 3. As used in this chapter, "property tax liability" means
36	36	10 liability for the tax imposed on property under this article
37	37	11 determined after application of all credits and deductions under
38	38	12 this article, but does not include any interest or penalty imposed
39	39	13 under this article.
40	40	14 Sec. 4. As used in this chapter, "qualified individual" means an
41	41	15 individual who is eligible for the homestead deduction under
42	42	16 IC 6-1.1-12-37 on the assessment date for which the individual's
43	43	17 property tax liability is imposed.
44	44	2025 IN 340—LS 7221/DI 125 2
45	45	1 Sec. 5. Notwithstanding any other law, but subject to other
46	46	2 provisions of this chapter, the property tax liability that may be
47	47	3 imposed on a qualified individual's homestead may not exceed the
48	48	4 lesser of the following:
49	49	5 (1) The amount of property tax liability of the individual that
50	50	6 is attributable to the homestead for property taxes first due
51	51	7 and payable in the particular calendar year as would
52	52	8 otherwise be determined under this article.
53	53	9 (2) The amount of property tax liability of the individual that
54	54	10 is attributable to the homestead for property taxes first due
55	55	11 and payable in the immediately preceding calendar year
56	56	12 multiplied by one and two-hundredths (1.02).
57	57	13 The amount of property tax liability determined under this section
58	58	14 is the maximum property tax liability to which the homestead is
59	59	15 subject for the applicable calendar year.
60	60	16 Sec. 6. If a physical change to taxable property results in an
61	61	17 increased assessment of the taxable property for an assessment
62	62	18 date for which property tax liability is imposed, the property tax
63	63	19 liability of a person for property taxes first due and payable for
64	64	20 that assessment date with respect to the taxable property is the sum
65	65	21 of the:
66	66	22 (1) amount of the person's property tax liability attributable
67	67	23 to the taxable property otherwise determined under section 5
68	68	24 of this chapter for the calendar year; plus
69	69	25 (2) amount of the person's property tax liability that is
70	70	26 directly attributable to the physical change in the taxable
71	71	27 property.
72	72	28 Sec. 7. If:
73	73	29 (1) the entire ownership interest; or
74	74	30 (2) any part of the ownership interest;
75	75	31 in the taxable property changes, the limitations in this chapter do
76	76	32 not apply to the determination of property tax liability for
77	77	33 property taxes first due and payable in the first calendar year
78	78	34 following the change in ownership. Instead, the amount of property
79	79	35 tax liability that is attributable to the taxable property for property
80	80	36 taxes first due and payable in that particular calendar year is the
81	81	37 amount of property tax liability as would otherwise be determined
82	82	38 under this article.
83	83	39 Sec. 8. The auditor of the county shall apply the provisions of
84	84	40 this chapter to a determination of property tax liability for all
85	85	41 taxable property as set forth under this chapter.
86	86	42 SECTION 2. An emergency is declared for this act.
87	87	2025 IN 340—LS 7221/DI 125