LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7439 NOTE PREPARED: Jan 4, 2025
BILL NUMBER: SB 439 BILL AMENDED:
SUBJECT: Tax Increment Financing.
FIRST AUTHOR: Sen. Bohacek BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides that if a proposed redevelopment project area is not taxable at
the time the allocation area is being established, any property taxes that would have been paid on
undeveloped land shall be included in the base assessed value (AV) for purposes of determining property
tax levy distributions to the appropriate local units.
Effective Date: July 1, 2025.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Some taxing units may receive increased revenue in the future if currently
exempt, undeveloped land is included in a new TIF allocation area. The AV of the undeveloped land will
be added to the taxing units’ AV bases. The additional AV will reduce tax rates and shift some taxes to the
land under redevelopment from other taxpayers. The reduction in taxes charged to the other property owners
may reduce the impact of the tax caps which will then provide additional revenue to the units. The allocation
area will produce less taxes for use by the redevelopment commissions than it would under current law.
State Agencies Affected:
Local Agencies Affected: Local civil taxing units and school corporations; Local redevelopment
commissions.
Information Sources:
Fiscal Analyst: Bob Sigalow, 317-232-9859.
SB 439 1