Indiana 2025 Regular Session

Indiana Senate Bill SB0540 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 540
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 3-8-1-23; IC 3-10; IC 3-11-2-12; IC 6-1.1;
7	7	IC 36-2-15; IC 36-2-16-8.
8	8	Synopsis: Local fiscal matters. Raises the acquisition cost threshold
9	9	for purposes of the personal property tax exemption from $80,000 to
10	10	$250,000. Limits the ability to seek an excess levy appeal to those units
11	11	that have experienced a year over year population increase of 5% or
12	12	more. Caps the allowable increase in the amount of property taxes first
13	13	due and payable on a homestead in 2026, 2027, and 2028. Provides,
14	14	beginning in 2027, that the office of the county assessor is an
15	15	appointive office rather than an elective office. Specifies that the
16	16	county executive shall appoint an individual to the office of the county
17	17	assessor. Includes provisions to manage the conversion of the office of
18	18	the county assessor to an appointive office upon the abolition of the
19	19	office as an elective office.
20	20	Effective: Upon passage; July 1, 2025.
21	21	Buchanan, Rogers
22	22	January 16, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
23	23	2025 IN 540—LS 7443/DI 129 Introduced
24	24	First Regular Session of the 124th General Assembly (2025)
25	25	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
26	26	Constitution) is being amended, the text of the existing provision will appear in this style type,
27	27	additions will appear in this style type, and deletions will appear in this style type.
28	28	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
29	29	provision adopted), the text of the new provision will appear in this style type. Also, the
30	30	word NEW will appear in that style type in the introductory clause of each SECTION that adds
31	31	a new provision to the Indiana Code or the Indiana Constitution.
32	32	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
33	33	between statutes enacted by the 2024 Regular Session of the General Assembly.
34	34	SENATE BILL No. 540
35	35	A BILL FOR AN ACT to amend the Indiana Code concerning
36	36	taxation.
37	37	Be it enacted by the General Assembly of the State of Indiana:
38	38	1 SECTION 1. IC 3-8-1-23, AS AMENDED BY P.L.167-2015,
39	39	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40	40	3 JULY 1, 2025]: Sec. 23. This section does not apply to elections in
41	41	4 2026 and thereafter. A candidate for the office of county assessor
42	42	5 must satisfy the following:
43	43	6 (1) The candidate must have resided in the county for at least one
44	44	7 (1) year before the election, as provided in Article 6, Section 4 of
45	45	8 the Constitution of the State of Indiana.
46	46	9 (2) The candidate must own real property located in the county
47	47	10 upon taking office.
48	48	11 SECTION 2. IC 3-10-1-19, AS AMENDED BY P.L.227-2023,
49	49	12 SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
50	50	13 JULY 1, 2025]: Sec. 19. (a) The ballot for a primary election shall be
51	51	14 printed in substantially the form described in this section for all the
52	52	15 offices for which candidates have qualified under IC 3-8.
53	53	16 (b) The following shall be printed as the heading for the ballot for
54	54	17 a political party:
55	55	2025 IN 540—LS 7443/DI 129 2
56	56	1 "OFFICIAL PRIMARY BALLOT
57	57	2 _________________ Party (insert the name of the political party)".
58	58	3 (c) The following shall be printed immediately below the heading
59	59	4 required by subsection (b) or be posted in each voting booth as
60	60	5 provided in IC 3-11-2-8(b):
61	61	6 (1) For paper ballots, print: To vote for a person, make a voting
62	62	7 mark (X or U) on or in the box before the person's name in the
63	63	8 proper column.
64	64	9 (2) For optical scan ballots, print: To vote for a person, darken or
65	65	10 shade in the circle, oval, or square (or draw a line to connect the
66	66	11 arrow) that precedes the person's name in the proper column.
67	67	12 (3) For optical scan ballots that do not contain a candidate's name,
68	68	13 print: To vote for a person, darken or shade in the oval that
69	69	14 precedes the number assigned to the person's name in the proper
70	70	15 column.
71	71	16 (4) For electronic voting systems, print: To vote for a person,
72	72	17 touch the screen (or press the button) in the location indicated.
73	73	18 (d) Local public questions shall be placed on the primary election
74	74	19 ballot after the heading and the voting instructions described in
75	75	20 subsection (c) (if the instructions are printed on the ballot) and before
76	76	21 the offices described in subsection (g).
77	77	22 (e) The local public questions described in subsection (d) shall be
78	78	23 placed as follows:
79	79	24 (1) In a separate column on the ballot if voting is by paper ballot.
80	80	25 (2) After the heading and the voting instructions described in
81	81	26 subsection (c) (if the instructions are printed on the ballot) and
82	82	27 before the offices described in subsection (g), in the form
83	83	28 specified in IC 3-11-13-11 if voting is by ballot card.
84	84	29 (3) As provided by either of the following if voting is by an
85	85	30 electronic voting system:
86	86	31 (A) On a separate screen for a public question.
87	87	32 (B) After the heading and the voting instructions described in
88	88	33 subsection (c) (if the instructions are printed on the ballot) and
89	89	34 before the offices described in subsection (g), in the form
90	90	35 specified in IC 3-11-14-3.5.
91	91	36 (f) A public question shall be placed on the primary election ballot
92	92	37 in the following form:
93	93	38 (The explanatory text for the public question,
94	94	39 if required by law.)
95	95	40 "Shall (insert public question)?"
96	96	41 [] YES
97	97	42 [] NO
98	98	2025 IN 540—LS 7443/DI 129 3
99	99	1 (g) The offices with candidates for nomination shall be placed on
100	100	2 the primary election ballot in the following order:
101	101	3 (1) Federal and state offices:
102	102	4 (A) President of the United States.
103	103	5 (B) United States Senator.
104	104	6 (C) Governor.
105	105	7 (D) United States Representative.
106	106	8 (2) Legislative offices:
107	107	9 (A) State senator.
108	108	10 (B) State representative.
109	109	11 (3) Circuit offices and county judicial offices:
110	110	12 (A) Judge of the circuit court, and unless otherwise specified
111	111	13 under IC 33, with each division separate if there is more than
112	112	14 one (1) judge of the circuit court.
113	113	15 (B) Judge of the superior court, and unless otherwise specified
114	114	16 under IC 33, with each division separate if there is more than
115	115	17 one (1) judge of the superior court.
116	116	18 (C) Judge of the probate court.
117	117	19 (D) Prosecuting attorney.
118	118	20 (E) Circuit court clerk.
119	119	21 (4) County offices:
120	120	22 (A) County auditor.
121	121	23 (B) County recorder.
122	122	24 (C) County treasurer.
123	123	25 (D) County sheriff.
124	124	26 (E) County coroner.
125	125	27 (F) County surveyor.
126	126	28 (G) County assessor. This clause does not apply to elections
127	127	29 in 2026 and thereafter.
128	128	30 (H) County commissioner.
129	129	31 (I) County council member.
130	130	32 (5) Township offices:
131	131	33 (A) Township assessor (only in a township referred to in
132	132	34 IC 36-6-5-1(d)).
133	133	35 (B) Township trustee.
134	134	36 (C) Township board member.
135	135	37 (D) Judge of the small claims court.
136	136	38 (E) Constable of the small claims court.
137	137	39 (6) City offices:
138	138	40 (A) Mayor.
139	139	41 (B) Clerk or clerk-treasurer.
140	140	42 (C) Judge of the city court.
141	141	2025 IN 540—LS 7443/DI 129 4
142	142	1 (D) City-county council member or common council member.
143	143	2 (7) Town offices:
144	144	3 (A) Clerk-treasurer.
145	145	4 (B) Judge of the town court.
146	146	5 (C) Town council member.
147	147	6 (h) The political party offices with candidates for election shall be
148	148	7 placed on the primary election ballot in the following order after the
149	149	8 offices described in subsection (g):
150	150	9 (1) Precinct committeeman.
151	151	10 (2) State convention delegate.
152	152	11 (i) The local offices to be elected at the primary election shall be
153	153	12 placed on the primary election ballot after the offices described in
154	154	13 subsection (h).
155	155	14 (j) The offices described in subsection (i) shall be placed as follows:
156	156	15 (1) In a separate column on the ballot if voting is by paper ballot.
157	157	16 (2) After the offices described in subsection (h) in the form
158	158	17 specified in IC 3-11-13-11 if voting is by ballot card.
159	159	18 (3) Either:
160	160	19 (A) on a separate screen for each office or public question; or
161	161	20 (B) after the offices described in subsection (h) in the form
162	162	21 specified in IC 3-11-14-3.5;
163	163	22 if voting is by an electronic voting system.
164	164	23 (k) If no candidate has filed to run for an office on the primary ballot
165	165	24 then the county election board may print "NO CANDIDATE FILED"
166	166	25 in the place on the ballot where a candidate's name would have been
167	167	26 printed.
168	168	27 SECTION 3. IC 3-10-2-13, AS AMENDED BY P.L.278-2019,
169	169	28 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
170	170	29 JULY 1, 2025]: Sec. 13. The following public officials shall be elected
171	171	30 at the general election before their terms of office expire and every four
172	172	31 (4) years thereafter:
173	173	32 (1) Clerk of the circuit court.
174	174	33 (2) County auditor.
175	175	34 (3) County recorder.
176	176	35 (4) County treasurer.
177	177	36 (5) County sheriff.
178	178	37 (6) County coroner.
179	179	38 (7) County surveyor.
180	180	39 (8) County assessor. This subdivision does not apply to
181	181	40 elections in 2026 and thereafter.
182	182	41 (9) County commissioner.
183	183	42 (10) County council member.
184	184	2025 IN 540—LS 7443/DI 129 5
185	185	1 (11) Township trustee.
186	186	2 (12) Township board member.
187	187	3 (13) Township assessor (only in a township referred to in
188	188	4 IC 36-6-5-1(d)).
189	189	5 (14) Judge of a small claims court.
190	190	6 (15) Constable of a small claims court.
191	191	7 SECTION 4. IC 3-11-2-12, AS AMENDED BY P.L.227-2023,
192	192	8 SECTION 67, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
193	193	9 JULY 1, 2025]: Sec. 12. (a) The following offices shall be placed on
194	194	10 the general election ballot in the following order after the public
195	195	11 questions described in section 10(a) of this chapter:
196	196	12 (1) Federal and state offices:
197	197	13 (A) President and Vice President of the United States.
198	198	14 (B) United States Senator.
199	199	15 (C) Governor and lieutenant governor.
200	200	16 (D) Secretary of state.
201	201	17 (E) Auditor of state.
202	202	18 (F) Treasurer of state.
203	203	19 (G) Attorney general.
204	204	20 (H) United States Representative. If an election to fill a
205	205	21 vacancy in an office of United States Representative under
206	206	22 IC 3-10-8 is held on the same day as the election for the next
207	207	23 term of the same office, the ballot shall list the election to fill
208	208	24 the vacancy in the office immediately after the election for the
209	209	25 next term of the office.
210	210	26 (2) Legislative offices:
211	211	27 (A) State senator.
212	212	28 (B) State representative.
213	213	29 (3) Circuit offices and county judicial offices:
214	214	30 (A) Judge of the circuit court, and unless otherwise specified
215	215	31 under IC 33, with each division separate if there is more than
216	216	32 one (1) judge of the circuit court.
217	217	33 (B) Judge of the superior court, and unless otherwise specified
218	218	34 under IC 33, with each division separate if there is more than
219	219	35 one (1) judge of the superior court.
220	220	36 (C) Judge of the probate court.
221	221	37 (D) Prosecuting attorney.
222	222	38 (E) Clerk of the circuit court.
223	223	39 (4) County offices:
224	224	40 (A) County auditor.
225	225	41 (B) County recorder.
226	226	42 (C) County treasurer.
227	227	2025 IN 540—LS 7443/DI 129 6
228	228	1 (D) County sheriff.
229	229	2 (E) County coroner.
230	230	3 (F) County surveyor.
231	231	4 (G) County assessor. This clause does not apply to elections
232	232	5 in 2026 and thereafter.
233	233	6 (H) County commissioner.
234	234	7 (I) County council member.
235	235	8 (5) Township offices:
236	236	9 (A) Township assessor (only in a township referred to in
237	237	10 IC 36-6-5-1(d)).
238	238	11 (B) Township trustee.
239	239	12 (C) Township board member.
240	240	13 (D) Judge of the small claims court.
241	241	14 (E) Constable of the small claims court.
242	242	15 (6) City offices:
243	243	16 (A) Mayor.
244	244	17 (B) Clerk or clerk-treasurer.
245	245	18 (C) Judge of the city court.
246	246	19 (D) City-county council member or common council member.
247	247	20 (7) Town offices:
248	248	21 (A) Clerk-treasurer.
249	249	22 (B) Judge of the town court.
250	250	23 (C) Town council member.
251	251	24 (b) If a major political party does not nominate a candidate for an
252	252	25 office on a general, municipal, or special election ballot then the county
253	253	26 election board may print "NO CANDIDATE FILED" in the place on
254	254	27 the ballot where the name of the major political party's nominee would
255	255	28 be printed.
256	256	29 SECTION 5. IC 6-1.1-3-7.2, AS AMENDED BY P.L.137-2022,
257	257	30 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
258	258	31 JULY 1, 2025]: Sec. 7.2. (a) This section applies to assessment dates
259	259	32 occurring after December 31, 2015.
260	260	33 (b) As used in this section, "affiliate" means an entity that
261	261	34 effectively controls or is controlled by a taxpayer or is associated with
262	262	35 a taxpayer under common ownership or control, whether by
263	263	36 shareholdings or other means.
264	264	37 (c) As used in this section, "business personal property" means
265	265	38 personal property that:
266	266	39 (1) is otherwise subject to assessment and taxation under this
267	267	40 article;
268	268	41 (2) is used in a trade or business or otherwise held, used, or
269	269	42 consumed in connection with the production of income; and
270	270	2025 IN 540—LS 7443/DI 129 7
271	271	1 (3) was:
272	272	2 (A) acquired by the taxpayer in an arms length transaction
273	273	3 from an entity that is not an affiliate of the taxpayer, if the
274	274	4 personal property has been previously used in Indiana before
275	275	5 being placed in service in the county; or
276	276	6 (B) acquired in any manner, if the personal property has never
277	277	7 been previously used in Indiana before being placed in service
278	278	8 in the county.
279	279	9 The term does not include mobile homes assessed under IC 6-1.1-7,
280	280	10 personal property held as an investment, or personal property that is
281	281	11 assessed under IC 6-1.1-8 and is owned by a public utility subject to
282	282	12 regulation by the Indiana utility regulatory commission. However, the
283	283	13 term does include the personal property of a telephone company or a
284	284	14 communications service provider if that personal property meets the
285	285	15 requirements of subdivisions (1) through (3), regardless of whether that
286	286	16 personal property is assessed under IC 6-1.1-8 and regardless of
287	287	17 whether the telephone company or communications service provider is
288	288	18 subject to regulation by the Indiana utility regulatory commission.
289	289	19 (d) Notwithstanding section 7 of this chapter, if the acquisition cost
290	290	20 of a taxpayer's total business personal property in a county is less than
291	291	21 eighty thousand dollars ($80,000) two hundred fifty thousand dollars
292	292	22 ($250,000) for that assessment date, the taxpayer's business personal
293	293	23 property in the county for that assessment date is exempt from taxation.
294	294	24 (e) Subject to subsection (f), a taxpayer that is eligible for the
295	295	25 exemption under this section for an assessment date shall include the
296	296	26 following information on the taxpayer's personal property tax return:
297	297	27 (1) A declaration that the taxpayer's business personal property in
298	298	28 the county is exempt from property taxation.
299	299	29 (2) Whether the taxpayer's business personal property within the
300	300	30 county is in one (1) location or multiple locations.
301	301	31 (3) An address for the location of the property.
302	302	32 If the business personal property is in multiple locations within a
303	303	33 county, the taxpayer shall provide an address for the location where the
304	304	34 sum of acquisition costs for business personal property is greatest. If
305	305	35 two (2) or more addresses contain the greatest equivalent sum of
306	306	36 acquisition costs for business personal property within a given county,
307	307	37 the taxpayer shall choose only one (1) address to list on the return.
308	308	38 (f) Beginning after December 31, 2022, a taxpayer that has included
309	309	39 the information required under subsection (e) on the taxpayer's
310	310	40 personal property tax return to claim the exemption under this section
311	311	41 is not required to file a personal property return for the taxpayer's
312	312	42 business personal property for an assessment date that occurs after the
313	313	2025 IN 540—LS 7443/DI 129 8
314	314	1 assessment date for which the information is first provided under
315	315	2 subsection (e), unless or until the taxpayer no longer qualifies for the
316	316	3 exemption under subsection (d) for a subsequent assessment date.
317	317	4 SECTION 6. IC 6-1.1-18.5-12, AS AMENDED BY P.L.156-2024,
318	318	5 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
319	319	6 UPON PASSAGE]: Sec. 12. (a) Any civil taxing unit that determines
320	320	7 that it cannot carry out its governmental functions for an ensuing
321	321	8 calendar year under the levy limitations imposed by section 3 or 25 of
322	322	9 this chapter, as applicable, may, subject to subsections (h) and (i):
323	323	10 (1) before October 20 of the calendar year immediately preceding
324	324	11 the ensuing calendar year; or
325	325	12 (2) in the case of a request described in section 16 of this chapter,
326	326	13 before December 31 of the calendar year immediately preceding
327	327	14 the ensuing calendar year;
328	328	15 appeal to the department of local government finance for relief from
329	329	16 those levy limitations. In the appeal the civil taxing unit must state that
330	330	17 it will be unable to carry out the governmental functions committed to
331	331	18 it by law unless it is given the authority that it is petitioning for. The
332	332	19 civil taxing unit must support these allegations by reasonably detailed
333	333	20 statements of fact.
334	334	21 (b) The department of local government finance shall immediately
335	335	22 proceed to the examination and consideration of the merits of the civil
336	336	23 taxing unit's appeal.
337	337	24 (c) In considering an appeal, the department of local government
338	338	25 finance has the power to conduct hearings, require any officer or
339	339	26 member of the appealing civil taxing unit to appear before it, or require
340	340	27 any officer or member of the appealing civil taxing unit to provide the
341	341	28 department with any relevant records or books.
342	342	29 (d) If an officer or member:
343	343	30 (1) fails to appear at a hearing after having been given written
344	344	31 notice requiring that person's attendance; or
345	345	32 (2) fails to produce the books and records that the department by
346	346	33 written notice required the officer or member to produce;
347	347	34 then the department may file an affidavit in the circuit court, superior
348	348	35 court, or probate court in the jurisdiction in which the officer or
349	349	36 member may be found setting forth the facts of the failure.
350	350	37 (e) Upon the filing of an affidavit under subsection (d), the court
351	351	38 shall promptly issue a summons, and the sheriff of the county within
352	352	39 which the court is sitting shall serve the summons. The summons must
353	353	40 command the officer or member to appear before the department to
354	354	41 provide information to the department or to produce books and records
355	355	42 for the department's use, as the case may be. Disobedience of the
356	356	2025 IN 540—LS 7443/DI 129 9
357	357	1 summons constitutes, and is punishable as, a contempt of the court that
358	358	2 issued the summons.
359	359	3 (f) All expenses incident to the filing of an affidavit under
360	360	4 subsection (d) and the issuance and service of a summons shall be
361	361	5 charged to the officer or member against whom the summons is issued,
362	362	6 unless the court finds that the officer or member was acting in good
363	363	7 faith and with reasonable cause. If the court finds that the officer or
364	364	8 member was acting in good faith and with reasonable cause or if an
365	365	9 affidavit is filed and no summons is issued, the expenses shall be
366	366	10 charged against the county in which the affidavit was filed and shall be
367	367	11 allowed by the proper fiscal officers of that county.
368	368	12 (g) The fiscal officer of a civil taxing unit that appeals under section
369	369	13 16 of this chapter for relief from levy limitations shall immediately file
370	370	14 a copy of the appeal petition with the county auditor and the county
371	371	15 treasurer of the county in which the unit is located.
372	372	16 (h) This subsection applies to a civil taxing unit whose budget for
373	373	17 the upcoming year is subject to review by a fiscal body under:
374	374	18 (1) IC 6-1.1-17-20;
375	375	19 (2) IC 6-1.1-17-20.3; or
376	376	20 (3) IC 6-1.1-17-20.4.
377	377	21 A civil taxing unit described in this subsection may not submit an
378	378	22 appeal under this section unless the civil taxing unit receives approval
379	379	23 from the appropriate fiscal body to submit the appeal.
380	380	24 (i) A participating unit of a fire protection territory may not submit
381	381	25 an appeal under this section unless each participating unit of the fire
382	382	26 protection territory has adopted a resolution approving submission of
383	383	27 the appeal.
384	384	28 (j) Beginning in 2025, only those civil taxing units that meet the
385	385	29 qualification under this subsection may appeal to the department
386	386	30 of local government finance for relief from the levy limitations
387	387	31 imposed by section 3 or 25 of this chapter. To qualify for levy relief
388	388	32 from those levy limitations, a county or municipality, or other civil
389	389	33 taxing unit, must have experienced a population increase of five
390	390	34 percent (5%) or more as determined under STEP THREE of the
391	391	35 following formula:
392	392	36 STEP ONE: Determine the population of the county or
393	393	37 municipality, or other civil taxing unit, for the calendar year
394	394	38 immediately preceding the calendar year of the appeal.
395	395	39 STEP TWO: Determine the population of the county or
396	396	40 municipality, or other civil taxing unit, for the calendar year
397	397	41 preceding by two (2) years the calendar year of the appeal.
398	398	42 STEP THREE: Determine the quotient of:
399	399	2025 IN 540—LS 7443/DI 129 10
400	400	1 (A) STEP ONE; divided by
401	401	2 (B) STEP TWO;
402	402	3 expressed as a percentage.
403	403	4 For purposes of determining the population of a county or
404	404	5 municipality, or other civil taxing unit, under the formula in a
405	405	6 given year, the most recent federal decennial census, any corrected
406	406	7 population count (as defined in IC 1-1-3.5-1.5), and the annual
407	407	8 estimates under the United States Census Bureau's population
408	408	9 estimates program shall apply.
409	409	10 SECTION 7. IC 6-1.1-51.2 IS ADDED TO THE INDIANA CODE
410	410	11 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
411	411	12 UPON PASSAGE]:
412	412	13 Chapter 51.2. Allowable Increase in Homestead Property Tax
413	413	14 Liability
414	414	15 Sec. 1. This chapter applies only to property taxes first due and
415	415	16 payable in the following calendar years:
416	416	17 (1) 2026.
417	417	18 (2) 2027.
418	418	19 (3) 2028.
419	419	20 Sec. 2. As used in this chapter, "homestead" has the meaning set
420	420	21 forth in IC 6-1.1-12-37.
421	421	22 Sec. 3. As used in this chapter, "property tax liability" means
422	422	23 liability for the tax imposed on property under this article
423	423	24 determined after application of all credits and deductions under
424	424	25 this article, but does not include:
425	425	26 (1) any property tax liability imposed in a voter approved
426	426	27 referendum; or
427	427	28 (2) any interest or penalty imposed under this article.
428	428	29 Sec. 4. (a) Notwithstanding any other law, for property taxes
429	429	30 first due and payable in a calendar year listed in section 1 of this
430	430	31 chapter, an individual is entitled to a determination of property tax
431	431	32 liability (not including any property tax liability imposed in a voter
432	432	33 approved referendum) with respect to the individual's homestead
433	433	34 under this section. The amount of property tax liability determined
434	434	35 under this section is the maximum property tax liability to which
435	435	36 the homestead is subject for the applicable calendar year.
436	436	37 (b) Subject to subsections (c) and (d), the property tax liability
437	437	38 of an individual for property taxes first due and payable in a
438	438	39 calendar year listed in section 1 of this chapter that are
439	439	40 attributable to the individual's homestead may not exceed the
440	440	41 lesser of the following:
441	441	42 (1) The amount of property tax liability (not including any
442	442	2025 IN 540—LS 7443/DI 129 11
443	443	1 property tax liability imposed in a voter approved
444	444	2 referendum) of the individual that is attributable to the
445	445	3 homestead for property taxes first due and payable in the
446	446	4 particular calendar year as would otherwise be determined
447	447	5 under this article.
448	448	6 (2) The amount of property tax liability (not including any
449	449	7 property tax liability imposed in a voter approved
450	450	8 referendum) of the individual that is attributable to the
451	451	9 homestead for property taxes first due and payable in the
452	452	10 immediately preceding calendar year multiplied by one and
453	453	11 five hundredths (1.05).
454	454	12 (c) If a physical change to the homestead results in an increased
455	455	13 assessment of the homestead for an assessment date for which
456	456	14 property tax liability is imposed in a calendar year listed in section
457	457	15 1 of this chapter, the property tax liability of an individual for
458	458	16 property taxes first due and payable for that assessment date with
459	459	17 respect to the homestead is the sum of the:
460	460	18 (1) amount of the individual's property tax liability
461	461	19 attributable to the homestead otherwise determined under
462	462	20 subsection (b) for the calendar year; plus
463	463	21 (2) amount of the individual's property tax liability that is
464	464	22 directly attributable to the physical change in the homestead.
465	465	23 (d) If:
466	466	24 (1) the entire ownership interest; or
467	467	25 (2) any part of the ownership interest;
468	468	26 in the homestead changes, subsection (b) does not apply to the
469	469	27 determination of property tax liability for homestead property
470	470	28 taxes first due and payable in the first calendar year following the
471	471	29 change in ownership. Instead, the amount of property tax liability
472	472	30 that is attributable to the homestead for property taxes first due
473	473	31 and payable in that particular calendar year is the amount of
474	474	32 property tax liability as would otherwise be determined under this
475	475	33 article.
476	476	34 Sec. 5. The property tax liability for a homestead determined
477	477	35 under this chapter for property taxes first due and payable in a
478	478	36 calendar year is considered for all purposes to be property taxes
479	479	37 imposed by the state or a political subdivision in which the
480	480	38 homestead is located.
481	481	39 Sec. 6. The auditor of the county shall apply the provisions of
482	482	40 this chapter to a determination of property tax liability for an
483	483	41 individual's homestead as set forth under this chapter.
484	484	42 SECTION 8. IC 36-2-15-0.5 IS ADDED TO THE INDIANA CODE
485	485	2025 IN 540—LS 7443/DI 129 12
486	486	1 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
487	487	2 1, 2025]: Sec. 0.5. The following apply on January 1, 2027, when the
488	488	3 office of the county assessor becomes an appointive office under
489	489	4 section 2(b) of this chapter upon the abolition of the office as an
490	490	5 elective office under section 2(a) of this chapter:
491	491	6 (1) The employment positions, as of December 31, 2026, of all
492	492	7 employees of the office of the county assessor when the office
493	493	8 was an elective office become employees of the office of the
494	494	9 county assessor when it becomes an appointive office.
495	495	10 (2) Real and personal property used solely to carry out
496	496	11 property assessment duties of the office of the county assessor
497	497	12 when the office was an elective office become the real and
498	498	13 personal property of the office of the county assessor when it
499	499	14 becomes an appointive office.
500	500	15 (3) Obligations outstanding on December 31, 2026, relating to
501	501	16 the assessment of tangible property of the office of the county
502	502	17 assessor when the office was an elective office become the
503	503	18 obligations of the office of the county assessor when it
504	504	19 becomes an appointive office.
505	505	20 (4) Funds on hand for the purpose of carrying out property
506	506	21 assessment duties of the office of the county assessor when the
507	507	22 office was an elective office, in the amount determined by the
508	508	23 county auditor, become the funds of the office of the county
509	509	24 assessor when it becomes an appointive office.
510	510	25 (5) Revenue received by the county for the purpose of
511	511	26 carrying out property assessment duties of the office of the
512	512	27 county assessor after the date the office becomes an
513	513	28 appointive office, in the amount determined by the county
514	514	29 auditor, becomes the revenue of the office of the county
515	515	30 assessor when it becomes an appointive office.
516	516	31 SECTION 9. IC 36-2-15-2, AS AMENDED BY P.L.167-2015,
517	517	32 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
518	518	33 JULY 1, 2025]: Sec. 2. (a) A county assessor shall be elected under
519	519	34 IC 3-10-2-13 by the voters of the county. However, an election for
520	520	35 county assessor shall not be held in 2026. On December 31, 2026,
521	521	36 the following occur:
522	522	37 (1) The term of office of an individual who holds the office of
523	523	38 the county assessor ends.
524	524	39 (2) The office of the county assessor as an elective office is
525	525	40 abolished.
526	526	41 (b) On January 1, 2027, the office of the county assessor
527	527	42 becomes an appointive office. The county executive shall appoint
528	528	2025 IN 540—LS 7443/DI 129 13
529	529	1 an individual to the office of county assessor for the county. An
530	530	2 individual who was serving as the county assessor (without regard
531	531	3 to whether the individual was initially elected to the office or
532	532	4 appointed to fill a vacancy in the office under IC 3-13) before the
533	533	5 abolition of the office as an elective office under subsection (a) is
534	534	6 eligible for appointment to the office of county assessor. An
535	535	7 individual appointed to the office of county assessor must satisfy
536	536	8 the following:
537	537	9 (1) The individual must have resided in the county for at least
538	538	10 one (1) year before the appointment, as provided in Article 6,
539	539	11 Section 4 of the Constitution of the State of Indiana.
540	540	12 (2) The individual must own real property located in the
541	541	13 county upon taking office.
542	542	14 (b) (c) In addition to the requirements of subsection (b), to be
543	543	15 eligible to serve as an assessor, an individual must meet the following
544	544	16 qualifications before taking office:
545	545	17 (1) If the individual has never held the office of county assessor,
546	546	18 the individual must have attained a level two assessor-appraiser
547	547	19 certification under IC 6-1.1-35.5.
548	548	20 (2) If the individual has held the office of county assessor, the
549	549	21 individual must have attained a level three assessor-appraiser
550	550	22 certification under IC 6-1.1-35.5.
551	551	23 (c) (d) A county assessor must reside within the county as provided
552	552	24 in Article 6, Section 6 of the Constitution of the State of Indiana. The
553	553	25 assessor forfeits office if the assessor ceases to be a resident of the
554	554	26 county.
555	555	27 (d) (e) The term of office of a county assessor is four (4) years,
556	556	28 beginning January 1 as follows:
557	557	29 (1) This subdivision applies before the elective office of county
558	558	30 assessor is abolished under subsection (a). After election, and
559	559	31 continuing until a successor is elected and qualified.
560	560	32 (2) This subdivision applies when the office of county assessor
561	561	33 becomes an appointive office under subsection (b). After
562	562	34 appointment, and continuing until a successor is appointed
563	563	35 and qualified.
564	564	36 SECTION 10. IC 36-2-15-5, AS AMENDED BY P.L.167-2015,
565	565	37 SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
566	566	38 JULY 1, 2025]: Sec. 5. (a) The county assessor shall perform the
567	567	39 functions assigned by statute to the county assessor, including the
568	568	40 following:
569	569	41 (1) Countywide equalization.
570	570	42 (2) Selection and maintenance of a countywide computer system.
571	571	2025 IN 540—LS 7443/DI 129 14
572	572	1 (3) Certification of gross assessments to the county auditor.
573	573	2 (4) Discovery of omitted property.
574	574	3 (5) In:
575	575	4 (A) a township in which the transfer of duties of the elected
576	576	5 township assessor is required by subsection (c); or
577	577	6 (B) a township in which the duties relating to the assessment
578	578	7 of tangible property are not required to be performed by a
579	579	8 township assessor elected under IC 36-6-5;
580	580	9 performance of the assessment duties prescribed by IC 6-1.1.
581	581	10 (b) A transfer of duties between assessors or a conversion of the
582	582	11 office of the county assessor to an appointive office upon the
583	583	12 abolition of that office as an elective office does not affect:
584	584	13 (1) any assessment, assessment appeal, or other official action
585	585	14 made by an assessor before the transfer or conversion of the
586	586	15 office to an appointive office; or
587	587	16 (2) any pending action against, or the rights of any party that may
588	588	17 possess a legal claim against, an assessor that is not described in
589	589	18 subdivision (1).
590	590	19 Any assessment, assessment appeal, or other official action of an
591	591	20 assessor made by the assessor within the scope of the assessor's official
592	592	21 duties before the transfer of duties or the conversion of the office to
593	593	22 an appointive office upon the abolition of the office as an elective
594	594	23 office is considered as having been made by the assessor to whom the
595	595	24 duties are transferred or by the assessor who is appointed after the
596	596	25 conversion of the office to an appointive office upon the abolition
597	597	26 of the office as an elective office.
598	598	27 (c) If the individual elected to the office of township assessor has
599	599	28 not attained the assessor-appraiser certification level required by
600	600	29 IC 36-6-5-1 before the date the term of office begins, the assessment
601	601	30 duties prescribed by IC 6-1.1 that would otherwise be performed in the
602	602	31 township by the township assessor are transferred to the county
603	603	32 assessor on that date. If assessment duties in a township are transferred
604	604	33 to the county assessor under this subsection, those assessment duties
605	605	34 are transferred back to the township assessor if at a later election an
606	606	35 individual who has attained the assessor-appraiser certification level
607	607	36 required by IC 36-6-5-1 is elected to the office of township assessor.
608	608	37 SECTION 11. IC 36-2-15-7, AS ADDED BY P.L.219-2007,
609	609	38 SECTION 109, IS AMENDED TO READ AS FOLLOWS
610	610	39 [EFFECTIVE JULY 1, 2025]: Sec. 7. (a) Each county assessor, elected
611	611	40 township assessor, or township trustee-assessor whose assessment
612	612	41 duties prescribed by IC 6-1.1 will be transferred under section 5 of this
613	613	42 chapter shall:
614	614	2025 IN 540—LS 7443/DI 129 15
615	615	1 (1) organize the records of the assessor's office relating to the
616	616	2 assessment of tangible property in a manner prescribed by the
617	617	3 department of local government finance; and
618	618	4 (2) transfer the records as directed by the department of local
619	619	5 government finance.
620	620	6 (b) The department of local government finance shall determine a
621	621	7 procedure and schedule for the transfer of the records and operations.
622	622	8 The assessors shall assist each other and coordinate their efforts to:
623	623	9 (1) ensure an orderly transfer of all records; and
624	624	10 (2) provide for an uninterrupted and professional transition of the
625	625	11 property assessment functions consistent with this chapter and the
626	626	12 directions of the department of local government finance.
627	627	13 (c) Subsections (a) and (b) apply to the transfer of records that
628	628	14 occurs when the office of the county assessor becomes an
629	629	15 appointive office under section 2(b) of this chapter upon the
630	630	16 abolition of the office as an elective office under section 2(a) of this
631	631	17 chapter.
632	632	18 SECTION 12. IC 36-2-16-8, AS AMENDED BY P.L.167-2015,
633	633	19 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
634	634	20 JULY 1, 2025]: Sec. 8. (a) The county assessor may appoint the
635	635	21 number of full-time or part-time deputies and employees authorized by
636	636	22 the county fiscal body.
637	637	23 (b) Before July 1, 2017, an employee of the county assessor who
638	638	24 performs real property assessing duties must have attained the level of
639	639	25 certification under IC 6-1.1-35.5 that the county assessor is required to
640	640	26 attain under IC 36-2-15-2(b).
641	641	27 (c) (b) After June 30, 2017, An employee of the county assessor
642	642	28 who is responsible for placing an assessed valuation on real property
643	643	29 must have attained the certification of a level three assessor-appraiser
644	644	30 under IC 6-1.1-35.5.
645	645	31 (d) (c) This subsection applies after June 30, 2017. If the county
646	646	32 assessor has not attained the certification of a level three
647	647	33 assessor-appraiser under IC 6-1.1-35.5, the county fiscal body shall
648	648	34 authorize either of the following:
649	649	35 (1) The appointment of at least one (1) deputy or employee who
650	650	36 has attained the certification of a level three assessor-appraiser
651	651	37 under IC 6-1.1-35.5.
652	652	38 (2) Contracting with a person who has attained, or who employs
653	653	39 for purposes of the contract an individual who has attained, the
654	654	40 certification of a level three assessor-appraiser under
655	655	41 IC 6-1.1-35.5. The individual under contract with the county
656	656	42 assessor under this subdivision shall assist the county assessor
657	657	2025 IN 540—LS 7443/DI 129 16
658	658	1 with assessment duties as determined by the county assessor.
659	659	2 Payment for the deputy, employee, or contractor shall be made from the
660	660	3 budget for the county assessor.
661	661	4 SECTION 13. [EFFECTIVE JULY 1, 2025] (a) The legislative
662	662	5 services agency shall prepare, as directed by the legislative council,
663	663	6 legislation for introduction in the 2026 regular session of the
664	664	7 general assembly to organize and correct statutes affected by this
665	665	8 act's conversion of the office of county assessor to an appointive
666	666	9 office, if necessary.
667	667	10 (b) This SECTION expires July 1, 2027.
668	668	11 SECTION 14. [EFFECTIVE JULY 1, 2025] (a) IC 6-1.1-3-7.2, as
669	669	12 amended by this act, applies to assessment dates after December
670	670	13 31, 2025.
671	671	14 (b) This SECTION expires June 30, 2028.
672	672	15 SECTION 15. An emergency is declared for this act.
673	673	2025 IN 540—LS 7443/DI 129