Introduced Version
SENATE BILL No. 353
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-18.5-31.
Synopsis: Property tax rate freeze. Provides a calculation to be used
in determining the maximum permissible ad valorem property tax levy
and resulting tax rate for taxes first due and payable in 2026 and 2027,
to cap the increase in the levy and tax rates based on a ratio comparison
of each civil taxing unit's maximum permissible ad valorem property
tax levy to net assessed value in 2025.
Effective: July 1, 2025.
Gaskill
January 14, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025 IN 353—LS 7293/DI 120 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
SENATE BILL No. 353
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 6-1.1-18.5-31 IS ADDED TO THE INDIANA
2 CODE AS A NEW SECTION TO READ AS FOLLOWS
3 [EFFECTIVE JULY 1, 2025]: Sec. 31. (a) This section applies to all
4 civil taxing units in determining the maximum permissible ad
5 valorem property tax levy and resulting tax rate for taxes first due
6 and payable in 2026 and 2027, including the tax rate and maximum
7 permissible ad valorem property tax levy for a school corporation's
8 operations fund.
9 (b) The department of local government finance shall determine
10 a maximum permissible ad valorem property tax levy to net
11 assessed value comparison using the following formula:
12 STEP ONE: For each civil taxing unit, determine the civil
13 taxing unit's maximum permissible ad valorem property tax
14 levy for taxes first due and payable in 2025.
15 STEP TWO: For each civil taxing unit, determine the net
16 assessed value of the civil taxing unit for taxes first due and
17 payable in 2025.
2025 IN 353—LS 7293/DI 120 2
1 STEP THREE: For each civil taxing unit, determine the
2 quotient of:
3 (A) the STEP ONE result; divided by
4 (B) the STEP TWO result;
5 expressed as a percentage.
6 (c) Notwithstanding the maximum permissible ad valorem
7 property tax levy determined under section 2 of this chapter, the
8 department shall determine a civil taxing unit's maximum
9 permissible ad valorem property tax levy for taxes first due and
10 payable in 2026 as set forth in the following formula:
11 STEP ONE: For each civil taxing unit, determine the civil
12 taxing unit's maximum permissible ad valorem property tax
13 levy for taxes first due and payable in 2026 without regard to
14 this section.
15 STEP TWO: For each civil taxing unit, determine the net
16 assessed value of the civil taxing unit for taxes first due and
17 payable in 2026.
18 STEP THREE: For each civil taxing unit, determine the
19 quotient of:
20 (A) the STEP ONE result; divided by
21 (B) the STEP TWO result;
22 expressed as a percentage.
23 STEP FOUR: Determine the difference between:
24 (A) each civil taxing unit's STEP THREE percentage; and
25 (B) the civil taxing unit's percentage under STEP THREE
26 of subsection (b) for taxes first due and payable in 2025;
27 but not less than zero percent (0%).
28 STEP FIVE: In the case of a civil taxing unit that has an
29 increase in its percentage comparison under STEP FOUR, the
30 civil taxing unit's maximum permissible ad valorem property
31 tax levy shall be determined as the lesser of:
32 (A) the civil taxing unit's maximum permissible ad
33 valorem property tax levy determined under this chapter
34 for taxes first due and payable in 2026, without regard to
35 this section; or
36 (B) the product of:
37 (i) the civil taxing unit's STEP THREE percentage in
38 subsection (b); multiplied by
39 (ii) the net assessed value of the civil taxing unit for taxes
40 first due and payable in 2026.
41 (d) Notwithstanding the maximum permissible ad valorem
42 property tax levy determined under section 2 of this chapter, the
2025 IN 353—LS 7293/DI 120 3
1 department shall determine a civil taxing unit's maximum
2 permissible ad valorem property tax levy for taxes first due and
3 payable in 2027 as set forth in the following formula:
4 STEP ONE: For each civil taxing unit, determine the civil
5 taxing unit's maximum permissible ad valorem property tax
6 levy for taxes first due and payable in 2027 without regard to
7 this section.
8 STEP TWO: For each civil taxing unit, determine the net
9 assessed value of the civil taxing unit for taxes first due and
10 payable in 2027.
11 STEP THREE: For each civil taxing unit, determine the
12 quotient of:
13 (A) the STEP ONE result; divided by
14 (B) the STEP TWO result;
15 expressed as a percentage.
16 STEP FOUR: Determine the difference between:
17 (A) each civil taxing unit's STEP THREE percentage; and
18 (B) the civil taxing unit's percentage under STEP THREE
19 of subsection (b) for taxes first due and payable in 2025;
20 but not less than zero percent (0%).
21 STEP FIVE: In the case of a civil taxing unit that has an
22 increase in its percentage comparison under STEP FOUR, a
23 civil taxing unit's maximum permissible ad valorem property
24 tax levy shall be determined as the lesser of:
25 (A) the civil taxing unit's maximum permissible ad
26 valorem property tax levy determined under this chapter
27 for taxes first due and payable in 2027, without regard to
28 this section; or
29 (B) the product of:
30 (i) the civil taxing unit's STEP THREE percentage in
31 subsection (b); multiplied by
32 (ii) the net assessed value of the civil taxing unit for taxes
33 first due and payable in 2027.
2025 IN 353—LS 7293/DI 120