Introduced Version
SENATE BILL No. 340
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-51.
Synopsis: Maximum increase of homestead property tax bill. Caps the
year over year increase of property tax liability on a homestead at 2%.
Effective: January 1, 2025 (retroactive).
Young M
January 13, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025 IN 340—LS 7221/DI 125 Introduced
First Regular Session of the 124th General Assembly (2025)
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SENATE BILL No. 340
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 6-1.1-51 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2025 (RETROACTIVE)]:
4 Chapter 51. Maximum Increase in Property Tax Liability
5 Sec. 1. This chapter applies to taxes first due and payable after
6 December 31, 2024.
7 Sec. 2. As used in this chapter, "homestead" has the meaning set
8 forth in IC 6-1.1-12-37.
9 Sec. 3. As used in this chapter, "property tax liability" means
10 liability for the tax imposed on property under this article
11 determined after application of all credits and deductions under
12 this article, but does not include any interest or penalty imposed
13 under this article.
14 Sec. 4. As used in this chapter, "qualified individual" means an
15 individual who is eligible for the homestead deduction under
16 IC 6-1.1-12-37 on the assessment date for which the individual's
17 property tax liability is imposed.
2025 IN 340—LS 7221/DI 125 2
1 Sec. 5. Notwithstanding any other law, but subject to other
2 provisions of this chapter, the property tax liability that may be
3 imposed on a qualified individual's homestead may not exceed the
4 lesser of the following:
5 (1) The amount of property tax liability of the individual that
6 is attributable to the homestead for property taxes first due
7 and payable in the particular calendar year as would
8 otherwise be determined under this article.
9 (2) The amount of property tax liability of the individual that
10 is attributable to the homestead for property taxes first due
11 and payable in the immediately preceding calendar year
12 multiplied by one and two-hundredths (1.02).
13 The amount of property tax liability determined under this section
14 is the maximum property tax liability to which the homestead is
15 subject for the applicable calendar year.
16 Sec. 6. If a physical change to taxable property results in an
17 increased assessment of the taxable property for an assessment
18 date for which property tax liability is imposed, the property tax
19 liability of a person for property taxes first due and payable for
20 that assessment date with respect to the taxable property is the sum
21 of the:
22 (1) amount of the person's property tax liability attributable
23 to the taxable property otherwise determined under section 5
24 of this chapter for the calendar year; plus
25 (2) amount of the person's property tax liability that is
26 directly attributable to the physical change in the taxable
27 property.
28 Sec. 7. If:
29 (1) the entire ownership interest; or
30 (2) any part of the ownership interest;
31 in the taxable property changes, the limitations in this chapter do
32 not apply to the determination of property tax liability for
33 property taxes first due and payable in the first calendar year
34 following the change in ownership. Instead, the amount of property
35 tax liability that is attributable to the taxable property for property
36 taxes first due and payable in that particular calendar year is the
37 amount of property tax liability as would otherwise be determined
38 under this article.
39 Sec. 8. The auditor of the county shall apply the provisions of
40 this chapter to a determination of property tax liability for all
41 taxable property as set forth under this chapter.
42 SECTION 2. An emergency is declared for this act.
2025 IN 340—LS 7221/DI 125