Indiana 2024 Regular Session

Indiana House Bill HB1234

Introduced
1/9/24  

Caption

Property tax limits on agricultural real property.

Impact

The bill's implementation is expected to stabilize the tax obligations of agricultural producers, potentially leading to enhanced investment in local agricultural practices and services. By enacting a universal cap on property taxes, the bill seeks to mitigate the variability of taxes faced by agricultural landowners, which can fluctuate significantly based on market conditions. This approach aligns with broader goals of supporting the agricultural sector and ensuring the sustainability of farming operations across the state.

Summary

House Bill 1234 focuses on the imposition of property tax limits specifically for agricultural real property in Indiana. The key provision of the bill is that it applies a 2% cap on property taxes to all forms of agricultural real property, which includes both land and buildings. This limitation aims to alleviate financial pressures on farmers and agricultural businesses, recognizing the significant role they play in the state's economy. The proposed changes are set to take effect on July 1, 2024, allowing time for local governments to adjust their tax structures accordingly.

Contention

However, there are concerns associated with this shift in policy. Opponents argue that the uniform cap might undermine local government revenue streams, which are often reliant on fluctuating property taxes to fund essential services such as infrastructure and education. Critics also fear that by limiting the ability of local jurisdictions to set their own tax rates based on community needs, this could hinder local governance and exacerbate disparities in service provision across different areas of the state. Overall, this bill represents a significant shift in the policy regarding agricultural property taxation, with potential ripple effects on local finances and agricultural practices.

Companion Bills

No companion bills found.

Previously Filed As

IN HB1413

Property tax increase limits.

IN SB0355

Property tax matters.

IN HB1051

Property tax relief.

IN HB1499

Various tax matters.

IN HB1202

State payments in lieu of property taxes.

IN SB0296

Sale of tax delinquent real property.

IN SB0090

Property tax freeze for seniors.

IN HB1627

Sale of tax sale properties to nonprofits.

IN SB0274

Tax exempt property.

IN SB0306

Homestead property tax liability cap.

Similar Bills

CA AB2013

Property taxation: new construction: damaged or destroyed property.

CA AB1500

Property taxation: application of base year value: disaster relief.

CA AB245

Property taxation: application of base year value: disaster relief.

DC B25-0486

Uniform Community Property Disposition at Death Act of 2023

CA SB964

Property tax: tax-defaulted property sales.

CA SB603

Property taxation: transfer of base year value: disaster relief.

CA SB1091

Property taxation: transfer of base year value: disaster relief.

HI HB1398

Relating To Property.