LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7450 NOTE PREPARED: Feb 11, 2025
BILL NUMBER: SB 443 BILL AMENDED: Feb 11, 2025
SUBJECT: Business Personal Property Tax.
FIRST AUTHOR: Sen. Freeman BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill increases the acquisition cost threshold for the business
personal property tax exemption from $80,000 to $100,000.
Effective Date: (Amended) January 1, 2025 (retroactive).
Explanation of State Expenditures: (Revised) Department of Local Government Finance (DLGF): This
bill’s exemption provision will necessitate the DLGF issuing updated personal property filing forms and
guidance to local assessors, regarding the change in the acquisition cost threshold. These requirements are
within the agency’s routine administrative functions and should be able to be implemented with no additional
appropriations, assuming near customary agency staffing and resource levels.
Explanation of State Revenues:
Explanation of Local Expenditures: Local assessors will realize some administrative savings as a result
of this bill. Taxpayers who claim the exemption must file one initial return within the county. The return
includes only identifying information and the exemption claim. The rest of the return may be left blank.
Local assessors will not have to process the numeric portion of these returns. Also, in a case where an
affected taxpayer is currently filing multiple returns in the county, the total number of filings will be reduced
to one. This bill will result in additional taxpayers filing the return in this manner.
Explanation of Local Revenues: (Revised) Beginning with taxes payable in CY 2026, this bill will result
in the exemption of approximately 9,700 additional business property tax returns, which will increase tax
rates and shift some taxes to other taxpayers.
The estimated change in net tax by property type is shown in the following table.
SB 443 1 Estimated Net Tax Change ($ Millions)
Property Type CY 2026 CY 2027 CY 2028
Homesteads 0.9 0.9 1.0
Farmland 0.2 0.2 0.2
Other Residential 0.2 0.2 0.2
Apartments 0.1 0.1 0.1
Ag Business 0.1 0.1 0.1
Other Real 0.7 0.7 0.7
Personal Property -4.2 -4.4 -4.4
Total -2.0 -2.2 -2.1
Note: Totals may not sum due to rounding.
The estimated revenue losses are summarized in the following table.
[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 -0.4 -0.5 -0.5
Townships -0.1 -0.1 -0.1
Cities and Towns -0.8 -0.9 -0.9
School Corporations -0.8 -0.8 -0.8
Libraries -0.1 -0.1 -0.1
Special Units -0.1 -0.2 -0.2
TIF 0.3 0.4 0.4
Total -2.0 -2.2 -2.1
Total Without TIF -2.3 -2.5 -2.5
Note: Totals may not sum due to rounding.
Additional Information -
Under current law, beginning with taxes payable in CY 2023, taxpayers who have less than $80,000 of
depreciable asset acquisition cost in the county are exempt from personal property tax. For taxes payable in
CY 2017 through CY 2020, taxpayers who had less than $20,000 of depreciable asset acquisition cost in the
county were exempt from personal property tax. From CY 2021 through CY 2022, taxpayers with less than
$40,000 of depreciable asset acquisition cost in the county were exempt from personal property tax.
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: Local civil taxing units and school corporations.
Information Sources: LSA property tax database.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
SB 443 2 Appendix A.
Estimated Change in Revenue - Total All Units and TIF
CntyCounty CY 2026 CY 2027 CY 2028
01 Adams -19,000 -21,000 -21,000
02 Allen -81,000 -114,000 -114,000
03 Bartholomew -27,000 -24,000 -28,000
04 Benton -3,000 -3,000 -3,000
05 Blackford -4,000 -4,000 -4,000
06 Boone -4,000 1,000 2,000
07 Brown 0 0 0
08 Carroll 0 0 0
09 Cass -13,000 -15,000 -13,000
10 Clark -122,000 -112,000 -112,000
11 Clay -1,000 -1,000 -1,000
12 Clinton -10,000 -11,000 -12,000
13 Crawford -7,000 -8,000 -8,000
14 Daviess -15,000 -15,000 -17,000
15 Dearborn -16,000 -14,000 -20,000
16 Decatur -2,000 -3,000 -3,000
17 DeKalb -2,000 -2,000 -2,000
18 Delaware -74,000 -81,000 -91,000
19 Dubois -22,000 -22,000 -25,000
20 Elkhart -70,000 -55,000 -56,000
21 Fayette -17,000 -16,000 -15,000
22 Floyd -21,000 -19,000 -24,000
23 Fountain -4,000 -4,000 -5,000
24 Franklin -3,000 -2,000 -3,000
25 Fulton -2,000 -2,000 -2,000
26 Gibson -10,000 -10,000 -10,000
27 Grant -20,000 -23,000 -25,000
28 Greene -19,000 -20,000 -23,000
29 Hamilton -56,000 -61,000 -39,000
30 Hancock -9,000 -7,000 -5,000
31 Harrison -2,000 -2,000 -2,000
32 Hendricks -22,000 -22,000 -17,000
33 Henry -19,000 -19,000 -20,000
34 Howard -53,000 -53,000 -71,000
35 Huntington -19,000 -21,000 -18,000
36 Jackson -7,000 -8,000 -9,000
37 Jasper -1,000 -1,000 -1,000
38 Jay -6,000 -7,000 -7,000
39 Jefferson -21,000 -21,000 -23,000
40 Jennings -6,000 -7,000 -5,000
41 Johnson -28,000 -19,000 -22,000
42 Knox -21,000 -22,000 -23,000
43 Kosciusko -10,000 -10,000 -10,000
44 LaGrange -10,000 -10,000 -10,000
45 Lake -125,000 -109,000 -108,000
46 LaPorte -55,000 -52,000 -51,000
47 Lawrence -13,000 -11,000 -12,000
48 Madison -48,000 -54,000 -46,000
SB 443 3 Appendix A.
Estimated Change in Revenue - Total All Units and TIF
CntyCounty CY 2026 CY 2027 CY 2028
49 Marion -232,000 -406,000 -395,000
50 Marshall -19,000 -12,000 -12,000
51 Martin -1,000 -1,000 -1,000
52 Miami -14,000 -16,000 -17,000
53 Monroe -8,000 -7,000 -6,000
54 Montgomery -9,000 -10,000 -14,000
55 Morgan 1,000 1,000 2,000
56 Newton -2,000 -2,000 -2,000
57 Noble -4,000 -5,000 -6,000
58 Ohio 0 0 0
59 Orange 2,000 2,000 2,000
60 Owen -1,000 -1,000 -1,000
61 Parke -1,000 -1,000 -1,000
62 Perry -2,000 -2,000 -2,000
63 Pike -3,000 -5,000 -4,000
64 Porter -35,000 -38,000 -44,000
65 Posey -4,000 -5,000 -5,000
66 Pulaski -1,000 -1,000 -1,000
67 Putnam -2,000 -2,000 -3,000
68 Randolph -6,000 -7,000 -8,000
69 Ripley -2,000 -2,000 -3,000
70 Rush -6,000 -7,000 -7,000
71 St. Joseph -135,000 -136,000 -111,000
72 Scott -9,000 -9,000 -10,000
73 Shelby -7,000 -9,000 -8,000
74 Spencer -2,000 -2,000 -2,000
75 Starke -3,000 -3,000 -3,000
76 Steuben -2,000 -2,000 -2,000
77 Sullivan -12,000 -11,000 -13,000
78 Switzerland -1,000 -1,000 -1,000
79 Tippecanoe -25,000 -20,000 -24,000
80 Tipton -8,000 -8,000 -8,000
81 Union -3,000 -3,000 -3,000
82 Vanderburgh -113,000 -134,000 -122,000
83 Vermillion -6,000 -5,000 -6,000
84 Vigo -66,000 -72,000 -65,000
85 Wabash -17,000 -18,000 -18,000
86 Warren -1,000 -1,000 -2,000
87 Warrick -5,000 -4,000 -5,000
88 Washington -10,000 -10,000 -10,000
89 Wayne -57,000 -61,000 -62,000
90 Wells -1,000 -1,000 -1,000
91 White -4,000 -4,000 -3,000
92 Whitley -2,000 -2,000 -3,000
Total -1,958,000 -2,163,000 -2,141,000
SB 443 4