IndianaHB 1210Second Regular Session 124th General Assembly (2026)HouseWALLET

Department of local government finance.

Sponsored By: Craig Snow (Republican)

Signed by Governor

Summary

Requires a municipal entity that hires or retains a municipal advisor to publish a contract in a prominent location on the municipal entity's website. Modifies the amount of supplemental wagering tax that the treasurer of state is required to pay to the riverboat operating in Gary and the distribution of wagering tax revenue to the city of Gary. Provides that the Lake County Convention Center Authority is established upon the substantial completion of the convention and event center. Establishes an alternative procedure for certain school corporations to issue refunding bonds. Requires state agencies and political subdivisions to cooperate with the state GIS officer in preparing a statewide base map. Eliminates the requirement that the department of local government finance (DLGF) work with the office of technology or another organization that is part of a state educational institution for purposes of posting information on the Indiana transparency website and submitting forms regarding data for local units. Allows a person to satisfy any notice statute by publishing notice in specified forms of media and modifies related provisions regarding notice by publication. Provides that in assessing or reassessing land, the land shall be assessed as agricultural land regardless of who owns the property or who is liable for the property taxes. Modifies procedures as to the reporting of assessment values of real and personal property and parcel level data. Changes the deadline for a county to submit to the DLGF data regarding real property, personal property, and geographic information system information. Requires the purchaser of a mobile home to process the paperwork with the bureau of motor vehicles to transfer the title into the purchaser's name within 90 days of the sale. Specifies eligibility for certain townships to petition for an increase to the maximum property tax levy for the firefighting and emergency services fund. Makes procedural changes for civil taxing units not subject to levy limits. Provides that certain local property tax credits result in a reduction of property tax collections in a political subdivision in which such a credit is applied. Specifies the procedures for the submission of certain forms and related allocation amounts with regard to various allocation areas. Amends various tax increment financing allocation area provisions, including provisions to redefine "residential property" and to require the original owner of certain nonowner-occupied residential property in an allocation area to enter into a written agreement with the appropriate entity to pay the property taxes for the portion of outstanding bonds until the bonds are retired. Changes reporting requirements by governing bodies to the DLGF regarding guaranteed savings contracts and energy efficient programs used by school corporations. Provides that the property tax rate for the levy imposed for the replacement of fire protection territory equipment is considered part of the maximum permissible ad valorem property tax levy and may not exceed $0.0333 per $100 of assessed value. Extends a temporary increase in the capitalization rate percentage under the statewide agricultural land base rate determination. Requires the DLGF to annually publish on the Indiana Register the adjusted cost estimate threshold for certain local public work projects. Provides a real and personal property tax exemption for Indiana nonprofit senior living communities beginning with property taxes that are first due and payable in 2027. Adds the Indiana Historical Society, Inc. to a list of organizations exempt from property taxation. Allows certain taxpayers to retroactively file a property tax exemption application. Increases the amount of the property tax deduction for a model residence and a residence in inventory to 100% of the assessed value of the property for each deduction. Increases the number of model residences and residences in inventory from three to ten that may be claimed for purposes of those property tax deductions. Requires an individual to reside on the real property, mobile home, or manufactured home to be eligible for the over 65 property tax credit. Increases the property tax deduction for a veteran who is totally disabled to 100% of the assessed value of the individual's real property (instead of $14,000). Expires property tax deductions for certain veterans, and instead provides a property tax liability credit. Restores the property tax deduction available to a surviving spouse of a World War I veteran that was limited by SEA 1-2025. Provides, if a taxpayer claims the homestead deduction for property that is not eligible for the deduction, that the taxpayer shall (instead of may) be liable for any additional taxes that would have been due on homestead property plus a civil penalty. Requires the county auditor to include in a notice of tax due a 10% fine as a penalty for claiming the homestead deduction falsely, which is in addition to all other penalties for which the taxpayer is liable. Allows the executive of Miami Township in Cass County to submit a petition to the DLGF requesting an increase in the township's maximum permissible ad valorem property tax levy for property taxes first due and payable in 2027. Requires the Hancock County fiscal body to adopt a resolution to allow a one time transfer of money from the library property tax replacement fund. Provides that for purposes of fixing and reviewing budgets, tax rates, and tax levies, before a county auditor makes an amendment, the county auditor must provide written notice to the county fiscal body, the DLGF, and the fiscal officers of the affected taxing units. Provides that the DLGF may not approve the budget for a political subdivision until an attestation statement concerning the uploading of contracts is submitted. Allows a school corporation to allocate the effects of supplemental homestead credits granted for property taxes first due and payable in 2026 proportionately among all the school corporation's property tax funds. Requires certain qualified data center users to enter into an agreement with local officials before the qualified data center user may use a specific transaction award certificate. Adds a provision regarding repayment in the redevelopment tax credit. Specifies eligibility and procedures for a health reimbursement arrangement income tax credit. Moves the effective date for the local income tax changes enacted in SEA 1-2025 from 2028 to 2029. Makes corresponding changes to move the expiration date regarding a county with a single voting bloc enacted in HEA 1142-2025. Specifies procedures for the imposition of local income taxes and distribution of local income tax revenue. Removes provisions enacted in SEA 1-2025 providing for the expiration of local income tax expenditure rates for counties or municipalities that fail to adopt an ordinance to renew an existing expenditure tax rate. Provides that the county may determine an allocation method for revenue raised from a tax rate for fire protection or emergency medical services. Provides that the county and certain township fire departments must receive an allocation of revenue raised from a tax rate for fire protection or emergency medical services. Provides a formula for the distribution of revenue from the local income tax rate imposed by a county for certain small cities and towns. Specifies procedures for determining population for purposes of a municipal local income tax rate. Specifies that taxing units may deposit distributions of excise tax revenue in any fund maintained by the taxing unit. Allows each county to establish a local strategic taskforce to negotiate and determine certain maximum local income tax rates. Allows the Marshall County jail fund to be used for costs otherwise incurred for the operation of the county jail. Provides that distributions of certain excise tax revenue to a taxing unit may be deposited in any fund maintained by the taxing unit and may be used for any purpose allowed by law. Makes numerous changes and additions to the local innkeeper's tax and food and beverage tax statutes, including new food and beverage tax authorizations, modifications to distributions of innkeeper's tax revenue, and revisions to the composition of various innkeeper's tax boards and commissions. Replaces the definitions of "manufactured home" and "mobile home" throughout the Indiana Code with a singular definition. Subject to an exception, limits voting eligibility in a homeowners association to members of the homeowners association who use their property as a homestead as to certain matters. With certain exceptions, prohibits a unit from adopting or enforcing an ordinance, resolution, regulation, policy, or rule that prohibits or restricts an owner of a privately owned residential property from using the property as a rental property. Retroactively amends the definition of "short term rental" to specify that certain private, owner occupied businesses are excluded from that definition. Requires a person appointed to a fire protection district board of trustees to reside in the fire protection district. Sets forth an alternative procedure that may be used to appoint the board of trustees of certain fire protection districts. Specifies maximum property tax rates for certain fire protection territories. Revises a provision of the municipal Barrett Law concerning deferred installments. Amends provisions in the drainage law as to bidding on certain projects and the term of loans. Authorizes the budget agency, subject to budget committee review, to augment the state agency contingency fund appropriations in HEA 1001-2025 through July 1, 2027, in an amount not to exceed $40,000,000 for Indiana office of technology contracts, in addition to the uses for the appropriation authorized in HEA 1001-2025.

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130 provisions identified: 55 benefits, 31 costs, 44 mixed.

Full home deduction for disabled veterans

Beginning January 1, 2026, qualifying totally disabled veterans can deduct their main home's full assessed value, up from $14,000. The law also removes the former assessed-value cap and covers qualifying mobile and manufactured homes. Veterans need at least 90 days of service, an honorable discharge, and one year of Indiana residency before assessment. They must own the home or buy it through a recorded contract requiring them to pay property taxes. Surviving spouses can qualify based on the veteran's eligibility at death, but lose eligibility upon remarriage.

Builders get larger home tax deductions

Beginning January 1, 2026, deductions for eligible model homes and builders' inventory homes rise from 50% to 100% of assessed value. Model-home limits rise from three to ten per owner, with a ten-home combined cap for affiliated owners. Deductions cover at most one partly completed assessment date, the first completed assessment date, and the next two. Eligible model homes must first be assessed in 2009 or later; inventory homes, in 2012 or later. Disqualifying transfers before the following January 1 end deductions, and inventory homes cannot be leased during the assessment calendar year.

Landowners get longer drain payment terms

Beginning July 1, 2026, qualifying drain construction or reconstruction assessments can be paid over ten years instead of five. The related loan must mature within eleven years instead of six. The board must approve ten-year installments by resolution, and both the board and county fiscal body must authorize financing. Each project's payments repay its loan through a separate fund; leftover money can move to the general drain improvement fund. The law does not set interest rates or guarantee lower total costs.

Owners gain protection from rental bans

Beginning July 1, 2026, local governments generally cannot prohibit or restrict owners from renting privately owned residential property. Health, safety, building, fire, and reasonable occupancy rules remain allowed. Qualifying registration and inspection requirements remain allowed but cannot cap rental use. Noncompliant rules adopted before January 1, 2026, are exempt until January 1, 2028, unless permanently exempt. Qualifying short-term rental rules adopted before January 1, 2018, are also exempt.

Covered lodging tax capped in 2049

Beginning January 1, 2049, the lodging tax imposed under Indiana Code 6-9-9 cannot exceed 5%. Any portion of that tax rate above 5% expires that day. Customers pay less tax when the local rate previously exceeded 5%; savings depend on the taxable lodging charge.

Excessive local income-tax rates face correction

For ordinances adopted after June 30, 2028, the state must flag excessive local income-tax rates within 30 days. Ordinances adopted January 1–August 2 or October 2–December 31 can be corrected within 30 days after notice. A correction still above a legal maximum is void; otherwise, automatic reductions take effect on the original ordinance's effective date. Individual rates fall to their legal maximum. Excess combined rates are reduced first from the general-purpose component, preserving its required minimum, then proportionally from components (b)(2) and (b)(3).

Income exclusions protect Perry County taxpayers

Beginning January 1, 2029, Perry County resident taxpayers exclude income described in IC 6-3.6-8-7 from local income tax. The exclusion also covers residents of Perry County municipalities imposing the specified municipal tax. Separately, team and race team income enters the local tax base only when apportioned to Indiana. That income must also compensate services performed in the county or municipality imposing the tax.

Lake County keeps property-tax credit authority

Lake County's authority to provide local property-tax replacement credits extends through June 30, 2031. The county council must approve an ordinance. It chooses whether credits cover homesteads, all qualified residential property, or all taxpayers. An ordinance adopted under this provision expires December 31, 2028. The law does not set an individual credit amount.

Mobile Homes Gain Sales Tax Relief

The law includes qualifying mobile homes in the manufactured-home sales tax exemption. The exemption covers the specified portion of sales income and gross retail income from preowned qualifying homes. Separately, manufactured homes are included in mobile-home property assessment and tax rules when located in Indiana on the assessment date. The supplied provisions do not state the exempt sales portion or whether property-tax bills change.

Municipal income taxes start no earlier

Qualifying municipalities can begin a local income tax only after December 31, 2028, instead of after December 31, 2027. The rate cannot exceed 1.2%, and the municipality must adopt an ordinance. The delay does not impose the tax automatically.

Property tax credits for disabled veterans

Beginning January 1, 2026, a $250 property tax credit covers veterans age 62 or older with at least 10% disability. They need at least 90 days of service and an honorable discharge. A separate $350 credit covers honorably discharged wartime veterans with at least 10% service-connected disability. Both require approved disability records and property ownership or purchase through a recorded contract; eligible surviving spouses also qualify. Property tax statements provided after December 31, 2025, must explain listed deductions and credits, including veterans' relief and application steps.

Trust-Owned Homes Gain Property Tax Credits

Beginning January 1, 2026, trust-owned homes can qualify for specified property-tax credits. The resident must otherwise qualify for the credit. The county auditor must confirm the resident has a beneficial trust interest or a qualifying rent-free right to live there. That rent-free right must come from a qualified personal residence trust the resident created.

Unused deductions can lower aircraft taxes

Beginning January 1, 2026, aircraft owners can use qualifying unused property-tax deductions to reduce aircraft excise tax. The credit equals 7% of the deduction left after property-tax and vehicle-excise-tax use, capped at aircraft tax due. Eligible deductions are under IC 6-1.1-12-14 or IC 6-1.1-12-13 before that deduction expires. A certified county-auditor statement must be filed with the department before the credit is allowed.

Unused deductions can lower vehicle taxes

Vehicle owners can qualify for an excise-tax credit when a qualifying property-tax deduction remains after use against real estate and personal property. The credit reduces vehicle tax by $2 per $100 of taxable value, or major portion of $100. Covered deductions are under IC 6-1.1-12-14 and IC 6-1.1-12-16. The deduction under IC 6-1.1-12-13 also qualifies before it expires.

More land qualifies for farm assessments

Beginning January 1, 2025, agricultural assessment covers qualifying uses regardless of ownership or who owes the property tax. Covered uses include specified federal conservation programs, state classified forest and wildlands programs or successors, guideline-defined agricultural uses, and hardwood timber harvesting. Land bought for industrial or commercial use is excluded, and parcel size cannot determine agricultural use. For January 1, 2027 assessments, a 9% capitalization rate applies when the preliminary base rate exceeds the previous final rate by at least 10%. After December 31, 2027, an 8% capitalization rate applies when the statutory higher-rate condition is triggered.

Small Employers Get Health Arrangement Credits

Qualified employers with fewer than 50 employees can claim a tax credit for health reimbursement arrangement contributions. The arrangement must start in a taxable year beginning on or after January 1, 2024. The credit equals contributions, capped at $400 in the establishment year and $200 the next year; later years receive nothing. Contributions must at least match prior-year benefits or equal prior-year employer health insurance contributions per covered person.

Formerly frozen county levies can rise

Beginning January 1, 2029, qualifying counties receive an increase in their maximum property tax levy based on the statutory adjustment. This applies where a levy freeze adjusted the maximum in the tax year immediately before the specified freeze law's repeal. Counties with stabilization funds can combine that money with the levy increase for operations. Counties must plan a gradual, multi-year spend-down of stabilization funds or other available funds.

Qualifying townships can raise emergency levies

Qualifying townships can petition for higher firefighting and emergency-service property tax levies beyond the ordinary 0.15 rate limit. Prior petition adjustments must total 0.15, and assessed-value growth must be two to four times the prior year's maximum levy growth quotient. Added authority is capped at 0.8 times the law's second-step calculation, with another limit tied to the current certified rate. The township executive must petition before June 1 with fiscal body approval. Later petitions use the fourth-step calculation when the initial petition was filed after December 31, 2025.

Some homes carry development bond liens

Beginning July 1, 2026, original owners of qualifying nonowner-occupied homes in tax increment financing areas must sign bond-payment agreements after construction. Covered homes must fall under the 2% tax cap and be excluded from the area's base assessed value. Owners must pay the property's attributable share tied to outstanding district bonds through the original bond term. The agreement creates a lien that must be disclosed in residential sales and remains binding on a later homestead owner. Multifamily apartments are excluded.

Some homes carry district bond costs

Beginning July 1, 2026, certain newly built homes in tax increment financing areas carry a duty to pay district bond costs. This covers non-owner-occupied homes under the 2% tax cap that are excluded from the area's base assessed value. After construction, the original owner must sign an agreement to pay the home's share through the original bond term. The agreement creates a lien and must appear in the sales disclosure. A later buyer using the home as a homestead under the 1% tax cap takes over that duty. Multifamily apartments are excluded.

Disabled Veteran Property Deduction Ends

The disabled veteran deduction under Indiana Code 6-1.1-12-13 applies only to assessment dates before January 1, 2026. Qualifying veterans and surviving spouses cannot use this deduction for later assessment dates. The deduction section expires January 1, 2028.

False homestead claims bring added fines

Beginning July 1, 2026, a homestead must be your true, fixed, permanent home that you intend to return to. False homestead claims bring an added fine equal to 10% of the total tax bill calculated without the deduction. The county auditor must find the property ineligible within three years after taxes are first due. The auditor must send notice of taxes, interest, and penalties owed.

Local taxes reach visiting team members

Beginning January 1, 2029, qualifying nonresident team and race team members fall within county and municipal local-taxpayer definitions. Counties can tax their adjusted gross income from team services performed in the county after adopting a rate ordinance. A county's municipal-services component applies only to work locations where that rate could apply to residents. A municipality imposing its own local income tax also taxes covered team-service income earned there.

City Income Taxes Need Annual Renewal

Municipalities can impose a local income tax up to 1.2% beginning after December 31, 2028, subject to adoption requirements. Rates expire December 31, 2031, and each later December 31 unless readopted by ordinance for the next year. Outstanding tax-backed bonds, leases, or other obligations can prevent the tax from ending when officials fail to continue it. A fallback rate must raise 1.25 times the highest annual debt service, highest annual lease payments, and required reserve or sinking-fund deposits. That debt-backed requirement lasts until the covered obligations mature.

Counties can fund homeowner tax credits

Beginning July 1, 2025, counties retain authority to impose a tax funding homestead property-tax credits through December 31, 2028. A county must pass an ordinance setting a rate in 0.01% steps, no higher than 0.30%. Covered homesteads must qualify for the 1% property-tax limit, and the credit applies after other credits. Voter-approved referendum taxes are excluded. The funding tax ends after December 31, 2028, and the section expires January 1, 2029.

Counties can tax for emergency services

Counties can adopt a local income-tax component of up to 0.4% for fire protection or emergency medical services. The county must approve the rate by ordinance. The tax can fund either service alone rather than having to fund both. Providers offering either service or both can receive the money.

County income taxes need repeated renewal

The law extends IC 6-3.6-5's expiration from December 31, 2027, to December 31, 2028. Continuing an expenditure tax into 2029 requires a renewal ordinance by October 1, 2028. Outstanding tax-backed bonds or leases require a rate producing 1.25 times the specified highest annual debt service, lease payments, and required reserves until maturity. A county that does not renew can impose, renew, or change a rate starting January 1, 2030. County expenditure rates expire December 31, 2031, and each December 31 afterward unless readopted for the next year.

Advance notice of volunteer fire charges

Beginning July 1, 2027, volunteer fire departments must give notice before starting or changing service charges, including false-alarm charges. Notice must reach each city, town, or other political subdivision the department serves. The law does not set or limit the charges.

Read online public notices for free

Beginning July 1, 2027, newspapers carrying public notices in their electronic editions must allow free viewing and searching of those notices. They also cannot require readers to register. This applies to both newspapers and locality newspapers covered by the law.

County property tax relief lasts longer

The law extends existing county property tax relief rates through December 31, 2028, instead of December 31, 2027. It also extends the rules for when county credit changes affect tax bills through that date. Depending on the ordinance's adoption date, changes apply to bills due the next year or two years later.

Fire districts lose population-based levy increases

Fire protection districts can no longer petition for higher maximum property tax levies based on population growth. The repealed option required county legislative approval and applied to taxes first due in 2021 or later. Removing it closes one route to future property tax increases.

Owners can prepay municipal property assessments

Beginning January 1, 2026, municipal works boards must provide a prepayment policy for owners who deferred assessments by filing a waiver. Boards must allow full payment either after the first year following filing or at any time, including the filing year. Owners must also pay interest due at the next interest-paying period. Full payment ends future assessment interest and liability for the property.

Qualifying property transfers keep tax deductions

A qualifying property transfer preserves the former owner's deductions for the assessment date before the transfer. The section 16 deduction no longer carries a pre-expiration limit; the section 13 deduction still does. Title must transfer after that assessment date and by the following December 31. The buyer must apply for exemption for the next assessment date, and the county appeals board must approve it.

County taxes follow tighter coverage rules

Beginning January 1, 2029, the county's municipal-services tax component covers residents of the eligible area on the statutory residency date. For tax years beginning after December 31, 2028, county rates under IC 6-3.6-7 also face a coverage limit. A county can charge those rates only to taxpayers it could charge the rates under IC 6-3.6-6-2(b)(1) through (3). Neither rule sets a tax rate.

Eligible Homeowners Avoid Deduction Renewal Applications

Effective January 1, 2025, the law expands automatic continuation rules for specified veteran, surviving-spouse, and trust-related property-tax deductions. Individuals and trusts that received a covered deduction the previous year do not need to reapply while still eligible. This removes former expiration qualifiers from the continuation rules. It does not extend a deduction beyond its own assessment-date limits.

Mobile homes enter revised tax-credit rules

Indiana's property-tax credit rules include mobile homes in the definition of manufactured homes, without automatically granting a credit. Beginning January 1, 2026, the section 7.7 tax-liability calculation excludes the county credit under IC 6-3.6-6-3.1. That calculation still includes credits under sections 7 and 7.5. It excludes credits under sections 7.7 and 8.5, interest, and penalties.

Property-tax caps for newer fire areas

Beginning January 1, 2026, fire districts established by ordinances or resolutions adopted after December 31, 2025, face a $0.40-per-$100 assessed-value cap. Fire territories established after December 31, 2024, face that cap on their territory fund for taxes due in 2027. For taxes due in 2028 onward, their territory and equipment-replacement funds share the $0.40 cap. Existing territories with boundary changes adopted after December 31, 2025, face the $0.40 territory-fund cap. For boundary changes adopted during 2025, the territory-fund rate cannot exceed its certified rate for 2026 taxes.

Surviving Spouses Keep Historic Military Deduction

Effective January 1, 2025, the law preserves an $18,720 assessed-value deduction for qualifying surviving spouses. It removes the pre-2025 assessment limit and January 1, 2027 expiration. The deceased spouse must have served before November 12, 1918, and received an honorable discharge. The survivor must own the property or buy under a recorded contract requiring payment of its property taxes. A sworn statement and Veterans Affairs service proof are due January 15 of the year taxes are first payable.

Veterans Keep Limited Vehicle Tax Credit

Beginning January 1, 2025, eligible veterans and surviving spouses retain a vehicle excise tax credit capped at $70 per person. The credit covers no more than two vehicles. Claimants must meet a listed veteran or surviving-spouse category and cannot own property eligible for the specified property-tax deductions. The law updates those deduction references, including one that applies only before it expires.

Business Owners Can Share Health Credits

For tax years beginning after December 31, 2025, pass-through business owners can claim allocated health reimbursement arrangement credits. This applies when the business qualifies for the credit but has no state tax liability to offset. Each shareholder, partner, or member receives the business credit multiplied by their percentage of its distributive income. Owners can apply their allocated credit against their own state tax liability.

Cities Gain Local Fund Board Seats

The law adds city-appointed members to covered local fund boards. In counties with more than 250,000 and fewer than 300,000 people, each city executive gets an appointment, except existing appointees’ cities. Clark and Floyd County cities also gain appointments, except New Albany and Jeffersonville, which already appoint members. Beginning July 1, 2026, two additional covered county boards add city appointments, with their existing city exceptions preserved.

Cities gain seats on tourism boards

The law adds city-appointed members to several county tourism and visitor boards, generally beginning July 1, 2026. City executives make the appointments. Several requirements apply only when the county levies the tax named in that county’s law. Some boards exclude cities already covered by other appointment rules; the change under chapter 18 excludes Porter County. One provision expressly covers first-, second-, and third-class cities.

Cities Gain Seats On Tourism Boards

Beginning July 1, 2026, covered county visitor commissions and bureaus add members appointed by city executives. Some boards exclude cities already covered by existing appointment rules; others add a member for every city. One commission’s appointment rule applies only when its specified county tax is levied. Another covered county must create an economic development and tourism commission when it raises the specified tax by ordinance. Each city except the largest municipality appoints a member to that commission.

Counties Gain Smaller Fire Board Option

Counties with more than 350,000 but fewer than 400,000 people can choose an alternative nine-member fire district board. The option applies when regular appointment rules produce more than nine members. County commissioners appoint six trustees, and the county council appoints three. Limits apply to appointments from each original district or territory.

Governments Must Share Statewide Mapping Data

Beginning July 1, 2026, state agencies and local governments must help integrate statewide geographic and base-map data. Cooperation and participation are required when the state geographic information officer requests them.

Local Advisor Contracts Must Be Public

Municipal entities hiring or retaining municipal advisors must prominently post contracts on their websites and upload them to the state finance gateway. Contracts signed before January 1, 2026, and still active that day must be published by April 15, 2026. That deadline also covers contracts signed January 1 through February 28, 2026. Contracts signed on or after March 1, 2026, must be published within 30 days after signing.

Local Notices Can Move Online

Beginning July 1, 2027, local governments have more ways to publish required public notices. They can use qualifying newspapers’ print or electronic editions, their own websites, or a combination. Government website notices must follow the state’s website publication rules. Existing deadlines and publication frequency requirements remain.

Counties Must Consider Fire Service Coverage

Beginning July 1, 2028, counties must consider provider boundaries and latest federal census populations when dividing fire and emergency medical tax revenue. A township fire department must receive money if full-time firefighters handled at least 50% of its fire runs. Those firefighters must earn at least $30,000; the test uses the calendar year two years before distribution. Counties may also fund township and volunteer providers of fire protection, emergency medical services, or both. County service boundaries count only where the county provides service.

County tourism funds can support infrastructure

Beginning July 1, 2026, the covered county must create a tourism promotion and capital fund when it imposes the specified tax. The fund can support promotion and infrastructure that improves or benefits the tourism economy. Allowed costs include acquisition, construction, improvements, installation, and professional services. The law sets no funding amount.

Gary Gets Demolition And Station Matches

Remaining riverboat tax revenue matches Gary’s qualifying demolition fund deposits, up to $3 million annually. This covers state fiscal years beginning after June 30, 2025, and ending before July 1, 2027. Gary Metro Center station fund deposits receive a separate annual match up to $3 million through fiscal years ending before July 1, 2050. Station matches also begin with fiscal years starting after June 30, 2025, including deposits made on Gary’s behalf. Demolition payments each require budget review and regional authority deposit certification; station payments require initial budget review and later deposit certifications.

Hancock Libraries Can Receive Remaining Funds

Hancock County can transfer its library property tax replacement fund balance measured on December 31, 2028. The transfer must occur after that date and no later than July 1, 2029. The county must approve, and Hancock County Public Library and Fortville Public Library must submit substantially similar resolutions requesting it. Each library receives a share based on its district’s population in the latest federal decennial census. Libraries must deposit the money in their general funds.

Lake County Development Deposits Get Matched

For state fiscal years beginning after June 30, 2025, remaining riverboat tax revenue matches qualifying development fund deposits. The Lake County economic development and convention fund receives matches equal to approved-entity deposits, capped at $5 million annually. The first payment requires budget committee review. Payments end at the earlier of the law’s final eligible fiscal year or state receipt of certification that covered secured debt is repaid.

Local governments gain online notice options

Local governments with official websites can move repeat legal notices online after the first required newspaper publication. When two newspapers are required at roughly the same time, the first notice must appear in both. Beginning July 1, 2027, a newspaper’s basic electronic notice charge must equal its basic print charge. The law does not establish whether that price rule raises or lowers existing charges.

Local redevelopment funds can support childcare

Redevelopment commissions can use allocation funds to help build, expand, or operate child care facilities in or serving their areas. These funds cannot pay the commission's own operating expenses. Beginning July 1, 2026, redevelopment districts can also provide financial help, including grants and loans, for these facilities. Funding for providers and lower fees for families are not guaranteed.

Cities Receive Tourism Construction Tax Shares

Beginning July 1, 2026, cities covered by one lodging-tax rule each receive 2% of receipts from the specified rate. Those cities must have more than 15,000 but fewer than 200,000 people in the latest decennial census. Under a separate rule, Noblesville, Carmel, Fishers, and Westfield each receive 25% of specified receipts generated by a rate above 5%. Cities must place these transfers in municipal tourism capital funds for tourism-related capital projects. They cannot spend the money on marketing, promotion, or planning.

Counties can negotiate income tax sharing

Beginning March 1, 2026, counties can form taskforces before October 1, 2026, to negotiate sharing of specified local income tax rates. Members include one county council representative and every city and town fiscal officer. Fire, emergency medical services, and nonmunicipal taxing-unit representatives cannot serve. Agreements require unanimous support and must go to the Department of Local Government Finance. The department must report agreements to the legislative council before December 1, 2026.

Counties keep property-tax exemption options open

The law extends local authority to adopt the property-tax exemption ordinance under IC 6-1.1-10.3-5. A local income tax council can adopt it before July 1, 2028. After June 30, 2028, the designated county adopting body can act. This authority does not itself grant an exemption to any property owner.

Higher riverboat funding caps for Gary

The law raises quarterly Gary riverboat tax allocations supporting obligations to the Northwest Indiana Regional Development Authority. Gary's dollar cap rises from $437,500 to $875,000, and Lake County's rises from $218,750 to $437,500. Each allocation remains limited to the lesser of its dollar cap or 33 1/3% of applicable prior-quarter taxes. The revenue comes from admissions and supplemental wagering taxes, not direct payments to households.

Historical Society Gets Property Tax Exemption

Beginning January 1, 2026, Indiana Historical Society tangible property is exempt from property tax when used exclusively for its purposes. Real property must also be actually occupied for those purposes. The exemption benefits the Society and does not require savings to be passed to households.

Local governments gain excise spending flexibility

Beginning January 1, 2027, taxing units can place covered excise-tax settlement receipts in any fund for any lawful purpose. Vehicle, recreational vehicle, truck camper, aircraft, and boat distributions retain property-tax distribution timing, but not the same allocation method. Auto-rental and heavy-equipment rental receipts no longer need fund shares matching property-tax collections. Vehicle-sharing receipts still follow property-tax proportions among county tax districts. These distributions remain subject to the settlement law; these allocation changes do not set new household tax rates.

Nonprofit Care Facilities Get Tax Exemptions

Beginning January 1, 2026, covered buildings and tangible personal property owned by qualifying Indiana nonprofits are exempt from property tax. Eligible entities include registered continuing care retirement communities, defined small house health facilities, and licensed health care or residential care facilities. The law does not require providers to lower resident charges.

Older Development Districts Can Repay Bonds

Beginning July 1, 2026, an original tax increment financing district can stay active to pay a later district’s outstanding bonds. This applies where a taxing district contains multiple covered financing districts. The reuse authority must submit a written appeal, get state finance department approval, and notify the State Board of Accounts. The original district can remain active only for those bond payments.

Repayment protection for older business credits

Indiana's development corporation cannot enforce repayment of the covered credit in qualifying agreements signed by December 31, 2020. It must remove the repayment term by June 30, 2026. The same agreement must also award an industrial recovery tax credit and set a $10 million maximum for the covered credit. Estimated investment must be at least $250 million. The project must be in a county with more than 350,000 but fewer than 400,000 people.

Shrinking towns can preserve tax status

Beginning after 2032, cities and towns falling below 3,500 residents can preserve their previous population for a municipal-tax determination. Their prior census population must have been at least 3,500. The fiscal body must pass an ordinance by September 1 of the calendar year two years after the census. It must send a certified copy to the state local-finance department. The ordinance takes effect the following January 1.

Temporary safeguards constrain local tax decisions

Through May 31, 2028, counties with a single voting bloc follow special procedures for local income tax increases. These use population-based vote shares, certifications, whole-council voting, and roll-call votes; absent or abstaining members count as voting no. Tax decreases follow ordinary procedures. Through June 30, 2028, local governments cannot pledge more than 25% of their certified tax distribution for covered obligations. That pledge limit applies to bonds, leases, and other covered obligations incurred after May 9, 2025.

Vanderburgh Landmark Nonprofits Can Recover Taxes

Qualifying Vanderburgh County landmark nonprofits can seek exemptions for the 2024 and 2025 assessment dates before September 1, 2026. Applicants must be 501(c)(3) nonprofits focused on preserving Indiana landmarks and must submit supporting documents. Property must have transferred before January 1, 2024, be owned, occupied, and used by the applicant, and meet the listed exempt-use requirements. The property must otherwise have qualified with a timely filing; relief removes taxes, penalties, and interest and refunds amounts already paid in one installment. Refunds include no added interest unless interest was already paid; this provision expires June 30, 2027.

Residents face short convention challenge deadline

Challenges to covered convention center actions must be filed within 15 days after adoption of the approving resolution or ordinance. Covered actions include leases, contracts, decisions, and bond or note issues. After that deadline, the action is conclusively treated as authorized under state law. Challenges to its authorization, validity, execution, delivery, or issuance are barred.

Assessment Statement Changes Lose Public Hearings

County auditors no longer need a public hearing or public comment before amending assessed-value information in a certified statement. Instead, they must notify the county fiscal body, state finance department, and affected taxing units’ fiscal officers in writing. They must also notify the assessor when the change comes from information the assessor supplied.

Mobile Home Buyers Face Title Deadline

Indiana mobile home buyers must complete title-transfer paperwork with the Bureau of Motor Vehicles within 90 days after the sale. The title must be transferred into the buyer’s name.

Penalty for keeping an invalid homestead deduction

Beginning July 1, 2026, homeowners must file a certified statement within 60 days after losing homestead-deduction eligibility. This includes a change in property use or already receiving an equivalent deduction. Those who fail to file and keep claiming the deduction owe the extra property taxes. They also owe a civil penalty equal to 10% of those taxes, plus any applicable interest and late-payment penalties.

Property owners can waive assessment reviews

A taxpayer can sign an agreement with a commission giving up assessment-review rights for property in a tax allocation area. The waiver covers assessment dates during specified bonds or leases paid from the area's allocated property taxes. An agreement can be signed before the area is created or the bonds or leases are determined. The waiver applies only when the taxpayer enters the written agreement.

County lodging tax ceilings rise temporarily

Beginning July 1, 2026, the covered county lodging tax ceilings rise from 5% to a firm 8% maximum. This includes DeKalb and Noble Counties. The tax covers lodging stays shorter than 30 days, and counties must choose to impose the rate. Beginning January 1, 2049, the ceiling returns to 5%, and any portion above 5% expires.

Huntington gains one local dining-tax option

Beginning July 1, 2026, Huntington County or the city of Huntington can adopt a food and drink tax, but not both. The first to adopt blocks the other; a supporting resolution and separate public hearing are required. The tax starts after the last day of the month following adoption. The accompanying tax rules cover specified prepared, heated, served, or utensil-provided food sales and cap rates at 1% in 0.25-percentage-point steps. Those rules exclude state sales tax from the tax base, preserve state sales-tax exemptions, and end the tax January 1, 2049.

Lagro gains a dining-tax option

Beginning July 1, 2026, Lagro can adopt a food and drink tax by ordinance. The town must first adopt a supporting resolution and hold a separate public hearing on the tax. The tax applies to covered purchases after the last day of the month following adoption. Revenue must support economic development or parks and recreation. The tax ends January 1, 2049.

Miami Township gains permanent levy option

Miami Township in Cass County can secure a $12,167 increase in its maximum property tax levy for taxes due in 2027. Its executive must petition before August 1, 2026, with fiscal body approval. Before approval, the fiscal body must hold a public hearing and share a fiscal plan and estimated taxpayer effects. It must also disclose that the increase is permanent. The adjusted levy carries into calculations for 2028 and later years, although this authorizing section expires June 30, 2029.

Property Owners Can Waive Assessment Reviews

Beginning July 1, 2026, development authorities and taxpayers can sign agreements waiving assessment reviews for tangible property in allocation areas. The waiver covers assessment dates during specified bond or lease terms funded by the area’s allocated property taxes. Agreements can be signed before the area is created or the financing decision is made.

Rush and Greendale gain dining-tax options

Rush County and Greendale can adopt food and drink taxes up to 1%, in 0.25-percentage-point steps, after separate public hearings. Greendale's authority begins July 1, 2026, and requires a supporting resolution; Rush must adopt its ordinance by December 31, 2026. Greendale's tax starts after the month following adoption; Rush's starts then or after a later date set by ordinance. State sales-tax-exempt transactions remain exempt, and both taxes end January 1, 2049. Rush revenue supports economic development or tourism; Greendale revenue supports parks, economic development, tourism, or related obligations.

Seniors must occupy homes for credit

Beginning January 1, 2026, claimants age 65 or older must live in the home receiving the $150 annual property-tax credit. This includes real property, mobile homes, and manufactured homes. Absence for a nursing-home or hospital stay does not disqualify a claimant. Existing adjusted-gross-income limits remain $60,000 for single filers and $70,000 combined for spouses filing jointly.

Unused property-tax credits cannot become refunds

When a credit covered by this rule exceeds your current property-tax bill, the unused amount cannot become a refund. You also cannot apply that unused amount to an earlier tax year.

Veterans Cannot Combine Two Tax Breaks

Starting with taxes assessed in 2026 and payable in 2027, recipients cannot combine two specified property-tax breaks. A person receiving the veteran deduction under Indiana Code 6-1.1-12-14 cannot also receive the local property-tax credit under 6-1.1-51.3. The supplied provision does not state the credit amount.

Fire district trustees must live locally

Beginning July 1, 2026, trustees appointed under IC 36-8-11-12 must live in their fire protection district. Nonresident trustees still serving on December 31, 2026, leave office that day. The county legislative body must appoint replacements for their remaining terms. Appointments under IC 36-8-11-12.5 are exempt.

Local Governments Face State Mapping Standards

Beginning July 1, 2026, the state mapping officer can require local governments using state-provided mapping data to follow state standards. Those governments can also be required to follow the statewide data integration plan. The requirement applies when they use state-provided geographic information system or framework data.

Tourism board limits industry representation

Beginning July 1, 2026, a simple majority of the covered county tourism commission must be outside the hospitality industry. Those members also cannot be involved in or promote convention, visitor, or tourism businesses or activities.

More Schools Face Financial Distress Review

Certain school refunding bonds and financial resolutions now provide grounds for a distressed school corporation designation. The relevant board must still receive the required petition and follow the applicable legal conditions. Issuing qualifying bonds or adopting a qualifying resolution does not automatically trigger the designation.

Annual cap limits business credit claims

Beginning January 1, 2026, credits under IC 6-3.1-38 are capped at $10 million per calendar year. Otherwise-qualified claims are approved in filing order. Owners' pass-through claims count as filed when the business files its return. For taxpayers carrying credits forward under section 8, the full allowable amount counts toward the annual cap.

Counties Must Approve Extra Fire Revenue

Beginning January 1, 2025, counties must approve some extra local income tax allocations for new fire protection territories. This applies to territories established by ordinances or resolutions adopted after December 31, 2024. Approval is required when creating the territory raises its property-tax levy and that increase generates an additional allocation. The county fiscal body must approve by ordinance or resolution before the provider unit receives the extra revenue.

County debt requires minimum tax rates

Counties with debt backed by specified general-purpose tax components must set a minimum rate to cover those obligations. The rate must generate 1.25 times the sum of the highest annual debt service, lease payments, and required reserve deposits. The law does not set an individual taxpayer's bill.

Data Centers Owe Local Electricity Contributions

Beginning July 1, 2026, qualifying data center users must make local contributions based on electricity billed each calendar quarter. Contributions cannot exceed 1% of state sales and use taxes not paid on that electricity. The rule applies when both the local data center permit and the user’s transaction award certificate are issued after June 30, 2026. Payments continue for the certificate’s duration and go to the county treasurer or municipal fiscal officer. The county or city decides how the money is allocated and used.

Gary Must Cover Convention Fund Shortfalls

Gary’s required Lake County convention fund contribution is up to $5 million each state fiscal year. The obligation starts with the first state fiscal year beginning after approval of a proposal under the program. State comptroller payments made for Gary count toward that contribution. After the comptroller certifies a shortfall, Gary must cover it with available city revenue other than property taxes.

Innovation Districts Block Development Area Extensions

Beginning July 1, 2026, local authorities cannot renew or extend a covered tax allocation area containing innovation development district land. The restriction applies when the Indiana Economic Development Corporation designates land within the existing area. It lasts until the innovation district’s term ends.

Mortgage disclosures stay; enforcement duties shrink

Effective January 1, 2025, closing forms for covered single-family, first-lien home purchase and refinancing loans list two specified property-tax deductions. The forms must explain who qualifies, without the former wording limiting disclosure to periods before the deductions expire. This does not change deduction amounts or eligibility. Closing agents no longer must submit certain records after closing or obtain customer verification of compliance. The law also removes the related $25 civil penalty and agency examination and enforcement rules, including the penalty for missing the pre-closing form.

Home sellers must disclose covered liens

The Indiana Real Estate Commission must add a disclosure for covered liens to the real estate disclosure form. These liens come from written agreements with redevelopment commissions or reuse authorities under the listed state laws. Sellers of affected property must disclose the lien, giving buyers information before purchase.

Homestead owners control association rental votes

Only homeowners association members who use their property as a homestead can vote on bans or limits on rental use. Members who do not use their property as a homestead lose voting eligibility on these questions. Developers that still own lots in the association are exempt from this restriction.

Trust-owned homes face changed deduction eligibility

Beginning January 1, 2026, qualifying trust-owned homes gain access to the section 13 property tax deduction. The law removes the section 14 deduction from the list available to trusts. The resident must have a beneficial interest in the trust or a qualifying rent-free right under a qualified personal residence trust. The resident must also qualify for the deduction.

Fire Territories Can Tax For Equipment

Participating local governments can create a fund to buy fire equipment serving the entire fire protection territory. A uniform property tax can fund it, capped at $0.0333 per $100 of assessed value within the maximum levy. Other funding options include debt and transfers of up to 5% of that year’s territory fund levy. Each government must adopt an identical ordinance or resolution after required notice and a hearing. Debt also requires matching approvals stating its amount and purpose.

Veteran Property Tax Relief Changes

For taxes assessed in 2026 and due in 2027, auditors replace the specified veteran deduction with a local tax credit. This covers taxpayers who received that deduction before HEA 1210-2026 was enacted; the credit amount is not supplied here. Separately, surviving spouses who received the section 16 deduction for the January 1, 2024 assessment need not reapply for 2025. Auditors must apply that deduction to taxes first due in 2026.

Short-term rental rules define covered businesses

The short-term rental definition covers specified homes rented through a platform for fewer than 30 days, including qualifying detached accessory buildings. For one section, it excludes private, owner-occupied businesses with two to ten guest rooms. To qualify for that exclusion, the business must provide paid overnight stays and a morning meal, and operate primarily as a business.

Contract Upload Confirmation Controls Budget Approval

Beginning July 1, 2026, local contract transparency rules tie budget approval to an annual filing. By March 2, fiscal officers must confirm that qualifying contracts entered into the previous year were uploaded. Covered contracts concern fire or emergency medical services and cost more than $50,000 over their term. The state finance department cannot approve the local budget or supplemental spending until that confirmation is filed.

Drainage Boards Use Updated Bidding Threshold

Beginning July 1, 2026, county drainage boards use the public works bidding threshold instead of a fixed $150,000 limit. Alternative contract procedures apply when the board’s estimate does not exceed that threshold. A board using those procedures without advertising must invite at least three prospective bidders.

Gary Convention Center Gains Financing Framework

The regional development authority can build the Lake County convention and event center and sell bonds to the Indiana Finance Authority. Gary can lease it and pledge lease payments to repay bonds; the entities can enter a governance agreement. After budget committee review, the law validates covered financing, construction, and operating actions. A convention center authority forms after proposal approval and construction is substantially complete for its intended use. Appointees must be Indiana residents with commercial facility management experience; active-standing attorneys and people with specified ties to the approved entity cannot serve.

Hamilton County revises tourism project grants

Beginning July 1, 2026, Hamilton County’s commission can approve fund transfers for long-term tourism, convention, and recreation capital projects. Eligible proposers include the county, separate local public bodies, and Indiana nonprofits in the county; city governments are not listed. Annual proposals can also support related economic development, and listed project factors become guides rather than mandatory qualifying tests. Unawarded money returns for a later application period. Recipients must agree to prove completion and may face annual financial reporting and audits.

Marshall County jail fund limits borrowing

Marshall County can use jail fund money for jail maintenance and operating costs. It cannot use the fund to issue new debt or enter into leases.

Public works limit tracks consumer prices

The estimated-cost limit for a public board to use its own workforce starts at $375,000. Each year, it changes with the previous year’s unadjusted all-items Consumer Price Index for All Urban Consumers. Each adjustment applies to the prior year’s adjusted limit. The state finance department must publish the current limit in the Indiana Register.

New classifications for assets backing loans

Indiana updates how its secured-transaction rules classify certain rights to payment and electronic records. Controllable accounts and health-care-insurance receivables count as accounts; related terms also cover controllable payment intangibles and electronic records. The law distinguishes certain out-of-state lottery and game winnings from Indiana State Lottery prizes. These classifications affect debtors and secured parties, rather than creating a general household payment or benefit.

Airport zones change property tax allocations

Beginning July 1, 2026, airport development zones established after June 30, 2024, use a narrower residential-value definition for tax financing. Only the county system's 1% homestead land and improvement categories count; added value tied to income-tax-funded property relief no longer counts. County auditors must adjust base values after reassessments and annual adjustments to neutralize effects on special-fund tax proceeds. They must send required forms to the Department of Local Government Finance by July 15 each year.

Schools can keep debt tax levies

Eligible school corporations can keep a debt-service tax levy after the related bonds are retired or refinanced. The state finance department must approve requests from schools qualifying under either listed refinancing law and submitting the required ordinance. Schools can transfer money from debt service to operations, limited to the lesser of specified levy credits or annual increment.

Schools gain longer debt repayment options

Eligible school corporations can extend bond, loan, or lease repayment beyond the original legal maximum under the applicable refinancing law. One alternative covers bonds or leases issued before July 1, 2025, without requiring savings. It requires operations-fund levy credits of at least 60%, no revenue loss for other county units, and state finance approval. Schools must adopt and publish the required resolution; each bond can receive one extension of no more than 10 years. Money freed through this alternative is limited to transfers allowed by the school operations-fund transfer law.

Airport financing districts can last longer

Beginning July 1, 2026, an original financing district in a qualifying airport development zone can outlast its normal expiration. The zone must contain multiple tax increment financing districts. The extension serves only to repay outstanding bonds issued by a later district. The commission must file a written appeal, obtain state finance approval, and notify the State Board of Accounts.

Auditors must protect redevelopment tax receipts

County auditors must adjust redevelopment and enterprise-zone base property values to offset reassessments and annual adjustments. The adjustments exclude property-tax abatements and cannot reduce district proceeds below what they otherwise receive without those assessment changes. Where specified, base values can decrease only as assessed values in the area decrease. Auditors must send required forms to the state finance department by July 15 each year. Related versions of these requirements begin July 1, 2027, and July 1, 2028.

Counties and towns divide tax receipts

The initial city-and-town share of specified income taxes equals their population share times 1.5, capped at 100%. Eligible municipalities must request shares by resolution; they divide the allocation by population, and the county receives the remainder. Municipalities eligible for their own income tax are excluded unless they make the specified statutory election. If no eligible municipality requests money, the county may keep all receipts. Separate levy-based transition rules continue for distributions before January 1, 2029, using prior rules in effect before July 1, 2028. Those transition rules exclude fire protection territory distributions and distributions under IC 6-3.6-6-9.

Counties shift allowed general revenue uses

Counties can use general-purpose revenue to pay county staff expenses of the state judicial system. The law removes homestead property-tax credits from this section’s list of allowed uses. It does not directly set a homeowner’s credit amount or tax bill.

County Auditors Protect Development Tax Revenue

County auditors must adjust development-area tax bases to cancel out specified reassessment and annual adjustment effects on allocated revenue. Covered areas include redevelopment districts, military base districts, certified technology parks, and innovation development districts. Redevelopment and military district adjustments exclude tax abatements and cannot reduce district revenue below the amount without the assessment change. Required annual forms are due July 15. Technology park and innovation district duties begin July 1, 2026; specified redevelopment and military base reuse changes begin July 1, 2028.

Development Districts Can Continue For Debt

Beginning July 1, 2026, an original tax increment financing district can remain active beyond its expiration. This applies in taxing districts with multiple such districts, solely to pay outstanding bonds issued by a later district. The redevelopment commission must obtain written approval from the Department of Local Government Finance. It must also give the State Board of Accounts written notice of its appeal.

Development districts face revised tax-base rules

From 2027 through 2033, the state adjusts tax-increment financing bases for specified deduction-related tax-rate effects. An area facing a revenue decrease can receive an upward adjustment to protect bond repayment if it demonstrates need before calculation. Beginning January 1, 2026, county auditors must adjust economic development district bases to offset reassessment and annual-adjustment effects, excluding abatements. Auditors must file state forms by July 15 each year. Qualifying districts or added areas established after June 30, 1997, also include current residential net assessed value not already counted.

Gary shares riverboat money with county

For state fiscal years beginning after June 30, 2026, the law divides a specified 25% share of remaining Gary riverboat taxes. Of that share, 40% goes to the Lake County economic development and convention fund, capped at $5 million yearly. Gary receives 60%, plus all remaining amounts after the fund reaches its cap. Fund deposits also count toward Gary’s funding obligation to the Northwest Indiana Regional Development Authority.

Large Credit Awards Face Repayment Rules

Recipients of covered tax credits above $20 million generally must agree to repay the excess, plus interest. The board sets the interest rate with budget agency approval. The corporation can omit repayment for a qualified redevelopment site with at least $100 million in proposed qualified investment. Repayments go to the state general fund. The repayable portion still counts toward the corporation’s annual total credit-certification limit.

Larger towns can choose small-town treatment

Beginning July 1, 2028, cities and towns with at least 3,500 people can choose small-town treatment for county income tax distributions. Their fiscal body must adopt an ordinance to count as having fewer than 3,500 people. The choice takes effect the next January 1. It cannot be revoked and expires December 31, 2032.

Limits on replacing property-tax credit losses

Beginning January 1, 2025, local governments cannot raise levies or borrow to replace losses from specified property-tax credits. The levy ban retains exceptions under IC 20-46-1 and IC 20-46-9. For taxes first due after December 31, 2009, covered credit losses fall first on unprotected tax funds, without reducing another government's funds. Protected funds can lose revenue when unprotected distributions are insufficient. Governments can transfer money to protected funds, but only enough to replace the specified loss.

Local Food Taxes Fund Restricted Projects

When a local body adopts the covered food and beverage tax, the state treasurer pays its receipts monthly. The local fiscal body must place all receipts and investment earnings in a dedicated fund. Money can support only economic development or parks and recreation, including authorized bond, lease, and other obligation payments. This provision expires January 1, 2049.

Local governments face revised levy limits

Beginning January 1, 2026, special levy-limit rules cover civil taxing units that did not exist on the prior January 1. A unit using the exception must adopt and file its budget, levy, and rate in the preceding year. State certification requires a fundable budget; a unit absent on the relevant January 1 cannot levy for the coming year. Beginning July 1, 2026, certain county, city, and town capital-improvement levy calculations use the certified rate instead of the maximum permitted rate.

Local Tax Sharing Gets Filing Rules

Counties receive revenue generated by the specified tax rates when their ordinances took effect before the tax authority ended. Counties can spend the covered distributions only for the purposes listed in state law. Eligible cities and towns requesting a share must send certified resolutions to the adopting body and State Board of Accounts by July 1 before distribution. Beginning July 1, 2028, counties can estimate nonmunicipal taxing-unit populations from income tax returns when census data cannot determine them. Estimates are due to the state finance department by July 15 two calendar years before distribution; otherwise, the department can use the latest auditor or revenue-department estimate.

Missed Notices Shift Local Tax Shares

Covered redevelopment and housing allocation areas face a default rule when commissions miss required notices about excess assessed value. County auditors must allocate 5% of the assessed value used to calculate allocated tax proceeds to the respective taxing units. This includes covered age-restricted housing areas, including one rule requiring annual notice before June 15. Auditors must not make the allocation when commissions notify them and the state finance department by July 1 that proceeds are needed for debt payments. Related redevelopment versions take effect July 1, 2027, and July 1, 2028; this is not a 5% charge to households.

New Home Values For Development Funding

For covered development areas created after June 30, 2024, residential value means the county software’s 1% homestead land and improvement categories. These rules cover redevelopment, excluded-city, military base reuse, and military base development areas. The redevelopment and military base reuse changes begin July 1, 2028. The new measure replaces references to values used for local property-tax relief credits. It changes local revenue calculations, not household credit eligibility or tax bills directly.

Older projects get protected, capped credits

Certain active, multi-phase projects on a defined footprint can receive no more than $5 million in credits annually. The development corporation cannot require repayment of those awards. The first phase must have received board approval for an industrial recovery tax credit before July 1, 2018. Only qualified investments made after June 30, 2021, count.

Residential values change redevelopment revenue splits

Covered redevelopment allocation areas include current net residential property value in their base, only where it is not already counted. Beginning July 1, 2027, this applies to specified economic development provisions adopted after June 30, 1995, and redevelopment provisions after June 30, 1997. Areas established after June 30, 2024, use the county system’s 1% homestead land and improvement categories to identify residential value. The law removes the separate residential value tied to the local income-tax property-tax relief credit from that definition. These rules change revenue allocation, not household tax bills directly.

Schools can spread homestead credit losses

For property taxes due in 2026, schools can spread supplemental homestead credit effects among eligible nonexempt property tax funds. Each fund's share is based on its levy. Schools gain flexibility but do not have to follow the usual protected-tax requirements for this allocation. The superintendent must notify the Department of Local Government Finance in writing by May 15, 2026. This authority ends January 1, 2027.

Schools can spread tax-credit revenue losses

During 2026, eligible school corporations can spread specified property-tax credit effects proportionally across nonexempt property-tax funds, based on each levy. The calculated operations-fund percentage must be at least 10%. A school must request certification before May 1, and the state must certify eligibility by June 1. Funds exempt under section 7.5(b) or (c) are excluded. This option expires January 1, 2027.

Solar land gets regional assessment rates

Beginning January 1, 2026, the state calculates separate solar land base rates for northern, central, and southern Indiana. Each rate uses the median tax value per acre of land in the specified utility property classes. The calculation includes land assessed at the agricultural base rate and uses values from the previous assessment date. Rates must be released by December 1 each year. The law does not state whether any particular landowner's assessment rises or falls.

Temporary Revenue Shares For Fire Partners

For specified local income and excise tax distributions, participating units count as imposing part of a fire territory’s property-tax levy. The statutory formula assigns each participating unit its share. The rule covers qualifying distributions after December 31, 2009, when the relevant allocation occurs before January 1, 2029. It changes revenue shares among local governments, not household tax rates directly.

Three cities receive overdue gaming payments

For state fiscal years beginning after June 30, 2026, East Chicago, Hammond, and Michigan City qualify for monthly overdue payments. These cover unpaid entitlements from fiscal years 2022–2025: East Chicago gets $6.474274 million plus its 2025 entitlement. Michigan City gets $5.752125 million plus its 2025 entitlement; Hammond gets its 2025 entitlement. Payments are proportional and capped at each city’s entitlement; the state provides $2 million annually. Up to $2 million yearly may come from Gary’s payments, first funding city payments and then repaying state appropriations; the section expires July 1, 2039.

Sponsors & Cosponsors

Sponsor

  • Craig Snow

    Republican • House

Cosponsors

  • Cherrish Pryor

    Democratic • House

  • Danny Lopez

    Republican • House

  • Harold Slager

    Republican • House

  • Linda Rogers

    Republican • Senate

  • Lonnie Randolph

    Democratic • Senate

  • Ryan Mishler

    Republican • Senate

  • Scott Baldwin

    Republican • Senate

  • Travis Holdman

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 268 • No: 52

House vote • 2/27/2026

Rules Suspended. Conference Committee Report 1: adopted by the House

Yes: 91 • No: 3

Senate vote • 2/27/2026

Rules Suspended. Conference Committee Report 1: adopted by the Senate

Yes: 48 • No: 0

Senate vote • 2/24/2026

Third reading: passed

Yes: 38 • No: 10

Senate vote • 2/19/2026

Amendment #8 (Young M) failed

Yes: 9 • No: 38

House vote • 2/2/2026

Third reading: passed

Yes: 82 • No: 1

Actions Timeline

  1. Public Law 157

    3/12/2026House
  2. Signed by the Governor

    3/12/2026House
  3. Signed by the President Pro Tempore

    3/5/2026Senate
  4. Signed by the Speaker

    3/3/2026House
  5. Signed by the President of the Senate

    3/2/2026Senate
  6. CCR # 1 filed in the Senate

    2/27/2026Senate
  7. CCR # 1 filed in the House

    2/27/2026House
  8. Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 415: yeas 91, nays 3

    2/27/2026House
  9. Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 324: yeas 48, nays 0

    2/27/2026Senate
  10. Motion to dissent filed

    2/25/2026House
  11. House conferees appointed: Snow, Pryor

    2/25/2026House
  12. House advisors appointed: Jordan, Thompson, Lopez, Campbell, Harris

    2/25/2026House
  13. Senate advisors appointed: Holdman, Mishler, Qaddoura

    2/25/2026Senate
  14. Senate conferees appointed: Baldwin, Hunley

    2/25/2026Senate
  15. House dissented from Senate amendments

    2/25/2026House
  16. Third reading: passed; Roll Call 242: yeas 38, nays 10

    2/24/2026Senate
  17. Returned to the House with amendments

    2/24/2026Senate
  18. Amendment #19 (Hunley) failed; voice vote

    2/19/2026Senate
  19. Amendment #7 (Buchanan) prevailed; voice vote

    2/19/2026Senate
  20. Amendment #16 (Baldwin) prevailed; voice vote

    2/19/2026Senate
  21. Amendment #8 (Young M) failed; Roll Call 197: yeas 9, nays 38

    2/19/2026Senate
  22. Second reading: amended, ordered engrossed

    2/19/2026Senate
  23. Committee report: amend do pass, adopted

    2/17/2026Senate
  24. Senator Randolph added as cosponsor

    2/12/2026Senate
  25. First reading: referred to Committee on Tax and Fiscal Policy

    2/5/2026Senate

Bill Text

  • Engrossed House Bill (H)

  • Engrossed House Bill (S)

  • Enrolled House Bill (H)

  • House Bill (H)

  • House Bill (S)

  • Introduced House Bill (H)

Related Bills

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