LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7281 NOTE PREPARED: Jan 2, 2025
BILL NUMBER: SB 347 BILL AMENDED:
SUBJECT: Indiana Economic Development Corporation.
FIRST AUTHOR: Sen. Buchanan BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill allows the fiscal body of a county, city, or town to adopt an ordinance
to require the Indiana Economic Development Corporation (IEDC) to make payments in lieu of taxes
(PILOTS) with respect to real property that satisfies each of the following conditions:
(1) The IEDC is the owner of any real property that is exempt from property taxes; and
(2) The IEDC has been the owner of such real property for at least one year on the date that an
ordinance is adopted.
It specifies that the assessed value of the real property subject to PILOTS is equal to the assessed value of
the real property on the assessment date of the calendar year in which the IEDC purchased the real property
while the ordinance is in effect. It also continuously appropriates from the state General Fund the amount
necessary for the IEDC to pay the required PILOTS.
The bill provides for the submission of an annual report of the activities of an Innovation Development
District (IDD) as to financial information pertaining to tax increment financing districts in an IDD to the: (1)
fiscal body of the county, city, or town; and (2) Department of Local Government Finance (DLGF).
Effective Date: July 1, 2025.
Explanation of State Expenditures: IEDC PILOTS: This bill continuously appropriates from the state
General Fund the amount necessary for the IEDC to pay the required PILOTS. This requirement may create
a new expenditure for the state. The actual fiscal impact will depend on:
1) The local decision of the applicable county or municipal fiscal body to enact the PILOT.
2) The number of real property parcels that would be subject to the PILOT.
3) The assessed value for each parcel on the assessment date of the calendar year in which the IEDC
purchased the real property.
4) The certified tax rate for the applicable tax district(s) in which the parcels are located.
IEDC: This bill’s requirements will result in an increase in the administrative workload for the IEDC since
they will be required to report on an annual basis certain financial information pertaining to the IDDs to the
SB 347 1 applicable county or municipal fiscal body and to the DLGF.
DLGF: The bill’s requirement of the DLGF receiving the annual report in an electronic format from the
IEDC is within the agency’s routine administrative functions and should be able to be implemented with no
additional appropriations, assuming near customary agency staffing and resource levels.
Additional Information: According to the Gateway SDF sales disclosure online search site, the IEDC has
purchased approximately 200 real property parcels located in Boone County since 2022 with a total assessed
value of approximately $32.5 M. These parcels are associated with the LEAP Innovation Development
District.
Explanation of State Revenues:
Explanation of Local Expenditures: Local Assessors: This bill’s requirements may result in an increase
in the administrative workload for local assessors. They will need to verify within their assessment software
systems that the assessed values of the applicable real property parcels reflect the values on the assessment
date of the calendar year in which the parcels were acquired by the IEDC rather than having an annual
adjustment factor applied to the parcels’ values. Additionally, local assessors will want to verify with their
respective county auditors that the applicable parcels have a zero dollar assessed value in the auditor’s tax
and billing system since the parcels would be exempt from property taxes.
County and Municipal Executive and Fiscal Bodies: This bill’s requirements may result in a minor increase
in the administrative workload for both the executive and fiscal bodies of the applicable counties and
municipalities in which the IDDs are located. The executive bodies - in conjunction with the IEDC - will be
required to report on an annual basis certain financial information pertaining to the IDDs to the applicable
county or municipal fiscal body and to the DLGF.
Explanation of Local Revenues: This bill’s provisions may result in higher tax rates and greater circuit
breaker tax cap losses for those local units of governments that provide services to the applicable taxing
districts in which the real property parcels are located. Exempting the assessed value of the real property
parcels would effectively lower the assessed value base for the tax district, thereby increasing the tax rate
and the likelihood of more properties in the district hitting the property tax cap limit.
Additionally, property tax revenue is allocated to local units of government that comprise a portion of the
taxing district’s tax rate, which includes townships, schools, libraries, and other special units. Under the bill,
the PILOT revenue would be distributed directly to the general fund of the applicable county or municipality.
State Agencies Affected: Indiana Economic Development Corporation; Department of Local Government
Finance.
Local Agencies Affected: Local Assessors; County and municipal executive and fiscal bodies; Civil taxing
units and school corporations.
Information Sources: Gateway SDF Sales Disclosure Online Search site:
https://gatewaysdf.ifionline.org/Search
Fiscal Analyst: James Johnson, 317-232-9869.
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