LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7293 NOTE PREPARED: Jan 31, 2025
BILL NUMBER: SB 353 BILL AMENDED:
SUBJECT: Property Tax Rate Freeze.
FIRST AUTHOR: Sen. Gaskill BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill 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 (AV) in 2025.
Effective Date: July 1, 2025.
Explanation of State Expenditures: The Department of Local Government Finance (DLGF) will calculate
the change, if any, in each taxing unit’s maximum levy limit under the bill. The bill’s requirements are 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.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: There are currently 2,368 taxing units in Indiana. Each year, the maximum
levy for each unit is increased by the maximum levy growth quotient (MLGQ), estimated at 5.6% in CY 2026
and 5.7% in CY 2027. This bill will substitute a lower growth amount for taxing units that have AV growth
that is less than the MLGQ percentage in CY 2026 and CY 2027.
An estimated 515 taxing units will have reductions in their levy growth of $29.3 M in CY 2026. In CY 2027,
an estimated 697 taxing units will have reductions in their levy growth of $59.8 M. Additionally, because
each year’s maximum levy calculation begins with the previous year amount, those units that are estimated
to have reduced growth in 2027 will have reduced maximum levies each year thereafter. In CY 2028, those
697 units will have reductions in their levy growth of $63.0 M.
Including the effect on tax caps, these levy reductions will lead to overall local revenue reductions and
property tax bill reductions estimated at $22.7 M in CY 2026, $36.4 M in CY 2027, and $37.6 M as
SB 353 1 compared to current law.
The following table shows the estimated net tax changes by property type.
Estimated Net Tax Change ($ Millions)
Property Type CY 2026 CY 2027 CY 2028
Homesteads -11.0 -15.8 -16.3
Farmland -2.2 -3.9 -3.9
Other Residential -3.0 -4.0 -4.2
Apartments -0.9 -1.1 -1.2
Ag Business -0.7 -1.2 -1.3
Other Real -2.5 -5.0 -5.1
Personal Property -2.4 -5.4 -5.6
Total -22.7 -36.4 -37.6
Note: Totals may not sum due to rounding.
The following table shows the estimated revenue changes by taxing unit type.
[Total estimated local property tax revenue changes by county appear in Appendix A. Estimated local
property tax revenue changes by taxing unit are available at this link.]
Estimated Net Revenue Change ($ Millions)
Unit Type CY 2026 CY 2027 CY 2028
Counties -1.2 -5.0 -5.1
Townships -0.2 -1.2 -1.3
Cities and Towns -1.1 -3.9 -3.9
School Corporations -4.3 -8.1 -8.4
Libraries -3.1 -3.7 -3.8
Special Units -12.1 -12.5 -13.2
TIF -0.8 -1.9 -1.9
Total -22.7 -36.4 -37.6
Total Without TIF -21.9 -34.5 -35.7
Note: Totals may not sum due to rounding.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: Civil taxing units and school corporations.
Information Sources: LSA property tax database.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
SB 353 2 Appendix A.
Estimated Change in Revenue
CntyCounty CY 2026 CY 2027 CY 2028
01 Adams 0 0 0
02 Allen 0 0 0
03 Bartholomew -1,000 -3,000 -3,000
04 Benton -22,000 -30,000 -30,000
05 Blackford 0 0 0
06 Boone 0 0 0
07 Brown 0 0 0
08 Carroll 0 0 0
09 Cass -2,816,000 -2,985,000 -3,137,000
10 Clark 0 0 0
11 Clay -5,000 -11,000 -12,000
12 Clinton -13,000 -136,000 -140,000
13 Crawford 0 -1,000 -1,000
14 Daviess 0 0 0
15 Dearborn -8,000 -156,000 -163,000
16 Decatur 0 0 0
17 DeKalb -10,000 -24,000 -25,000
18 Delaware 0 0 0
19 Dubois -2,000 -264,000 -278,000
20 Elkhart 0 0 0
21 Fayette 0 0 0
22 Floyd 0 0 0
23 Fountain -1,000 -1,000 -1,000
24 Franklin 0 0 0
25 Fulton -74,000 -291,000 -301,000
26 Gibson -10,000 -93,000 -97,000
27 Grant -26,000 -116,000 -117,000
28 Greene -89,000 -323,000 -324,000
29 Hamilton 0 0 0
30 Hancock 0 0 0
31 Harrison 0 0 0
32 Hendricks 0 0 0
33 Henry -4,000 -10,000 -11,000
34 Howard 0 -1,000 -1,000
35 Huntington 0 0 0
36 Jackson 0 -3,000 -3,000
37 Jasper -11,000 -37,000 -38,000
38 Jay -207,000 -510,000 -513,000
39 Jefferson -18,000 -172,000 -178,000
40 Jennings 0 -5,000 -5,000
41 Johnson 0 0 0
42 Knox -546,000 -1,272,000 -1,308,000
43 Kosciusko 0 0 0
44 LaGrange 0 -7,000 -7,000
45 Lake -45,000 -118,000 -142,000
46 LaPorte -1,000 -11,000 -10,000
47 Lawrence 0 0 0
48 Madison -1,000 -3,000 -3,000
49 Marion -34,000 -918,000 -949,000
SB 353 3 Appendix A.
Estimated Change in Revenue
CntyCounty CY 2026 CY 2027 CY 2028
50 Marshall 0 0 0
51 Martin 0 0 0
52 Miami -274,000 -702,000 -726,000
53 Monroe -12,070,000 -12,830,000 -13,505,000
54 Montgomery -677,000 -1,808,000 -1,721,000
55 Morgan -23,000 -930,000 -978,000
56 Newton -1,000 -2,000 -2,000
57 Noble -410,000 -1,521,000 -1,568,000
58 Ohio 0 0 0
59 Orange 0 0 0
60 Owen 0 0 0
61 Parke -357,000 -378,000 -398,000
62 Perry 0 -1,000 -1,000
63 Pike 0 0 0
64 Porter -41,000 -110,000 -116,000
65 Posey -5,000 -26,000 -27,000
66 Pulaski -21,000 -34,000 -35,000
67 Putnam -1,000 -18,000 -19,000
68 Randolph -366,000 -802,000 -839,000
69 Ripley -6,000 -86,000 -90,000
70 Rush 0 0 0
71 St. Joseph 0 0 0
72 Scott -40,000 -242,000 -246,000
73 Shelby 0 -1,000 -1,000
74 Spencer -97,000 -390,000 -407,000
75 Starke 0 0 0
76 Steuben -3,000 -8,000 -8,000
77 Sullivan -78,000 -162,000 -155,000
78 Switzerland -209,000 -486,000 -510,000
79 Tippecanoe 0 0 0
80 Tipton -1,000 -1,000 -1,000
81 Union 0 0 0
82 Vanderburgh -578,000 -2,355,000 -2,210,000
83 Vermillion -23,000 -59,000 -60,000
84 Vigo -17,000 -480,000 -485,000
85 Wabash -279,000 -760,000 -789,000
86 Warren -162,000 -341,000 -356,000
87 Warrick -2,984,000 -4,035,000 -4,224,000
88 Washington -1,000 -1,000 -1,000
89 Wayne -71,000 -319,000 -311,000
90 Wells 0 0 0
91 White -7,000 -14,000 -15,000
92 Whitley 0 0 0
Total -22,742,000 -36,402,000 -37,602,000
SB 353 4