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Yes: 657 • No: 1,210
IndianaSB 1First Regular Session 124th General Assembly (2025)SenateWALLET
Local government finance.
Sponsored By: Travis Holdman (Republican)
Signed by Governor
Summary
Places restrictions on the issuance of certain general obligation bonds. Amends a capitalization rate percentage under the statewide agricultural land base rate determination. Provides that the percentage cap used to determine the maximum levy growth quotient is 4% in 2026. Provides that, notwithstanding any growth in a political subdivision's assessed value (AV) in the previous year, a political subdivision's ad valorem property tax levy shall not exceed the ad valorem property tax levy for its last preceding annual budget, unless the fiscal body of the political subdivision adopts an affirmative tax rate and tax levy increase by ordinance following a separate public hearing. Requires a resulting decrease in tax rates for each political subdivision in which there was an increase in the political subdivision's AV in the previous year, subject to any affirmative tax rate and tax levy increase adopted by the fiscal body of the political subdivision. Phases out the authority for the department of local government finance (department) to permit an excess tax levy that is based on AV growth, school transportation costs, and other circumstances. Retains the provisions that permit an excess tax levy if the civil taxing unit cannot carry out its governmental functions in the case of annexation, a natural disaster, an accident, or an emergency. Phases in an increase in the acquisition cost threshold for the business personal property tax exemption from $80,000 to $2,000,000. Provides that the 30% minimum valuation limitation does not apply to business personal property placed in service after January 1, 2025. Phases down the homestead standard deduction over five years to zero beginning for taxes due and payable in 2031. Phases in an increase in the supplemental homestead deduction to 2/3 of the AV of the homestead. Phases in an AV deduction for all property that is subject to the 2% circuit breaker credit for excessive property taxes for assessment dates beginning in 2025 up to a 1/3 AV deduction for taxes due and payable in 2031, and each taxable year thereafter. Expires certain property tax deductions allowed in current law, and instead allows a credit against local property taxes in certain instances. Makes certain changes to the qualification requirements and credit amount for the over 65 circuit breaker credit. Provides a supplemental homestead tax credit for property taxes for a person's homestead if the person qualifies for a standard homestead deduction for the same homestead property. Provides that specified referendums may be placed on the ballot only at a general election. Amends the ballot language for controlled project, school operating, and school public safety referendums. Provides that a school corporation may not adopt a resolution to place a controlled project referendum on the ballot during the second calendar year after the final calendar year in which a previously approved controlled project referendum levy is imposed. Modifies the threshold amounts used for determining whether a political subdivision's project is a controlled project and whether the petition and remonstrance process or the referendum process applies based on the political subdivision's total debt service tax rate. Adds provisions to authorize a county fiscal body to adopt an ordinance to establish a property tax payment deferral program (program). Provides that a qualified individual participating in the program may defer the payment of part of the property taxes that would otherwise be due on a homestead. Provides that property taxes deferred under the program are due after the occurrence of a deferral termination event. Provides that the maximum amount of taxes that may be deferred cumulatively year over year may not exceed $10,000. Increases, beginning in 2028, the maximum local income tax (LIT) expenditure rate for all counties to 2.9%. Authorizes a city or town to impose a municipal LIT rate beginning in 2028 not to exceed 1.2%. Provides that within a county's total expenditure rate, the county may adopt: (1) up to a 1.2% rate for county general purpose revenue; (2) up to a 0.4% rate for fire protection and emergency medical services; (3) up to a 0.2% rate for nonmunicipal civil taxing unit general purpose revenue; and (4) up to 1.2% for certain cities and towns that are not eligible to adopt a municipal LIT rate. Eliminates provisions that provide for a distribution of LIT expenditure rate revenue to schools and civil taxing units in counties that imposed a rate under the prior county adjusted gross income tax. Authorizes a county fiscal body to impose a local income tax expenditure rate to provide property tax relief for property tax liability attributable to homesteads in the county before January 1, 2028. Expires the authority to impose a property tax relief rate under the LIT and repeals the levy freeze rate. Provides that, in order to continue to impose an expenditure tax rate after 2027, each county must adopt a new ordinance on or before October 1, 2027, to impose the rate. Provides that, for counties that fail to adopt an ordinance to renew an existing expenditure tax rate in 2027, the expenditure tax rate for the county in 2028 shall be the minimum tax rate necessary for existing debt service. Specifies that this does not prevent the county from renewing, imposing, or modifying an expenditure tax rate in subsequent years. Eliminates local income tax councils beginning July 1, 2027, and instead provides that the county fiscal body is the adopting body in all counties for purposes of the county LIT, and the city or town fiscal body is the adopting body in the case of a municipal LIT. Establishes the state and local income tax holding account within the state general fund for purposes of LIT distributions. Requires the budget agency to maintain an accounting for each county imposing a county LIT based on annual returns filed by or for county taxpayers (same as current law). Requires undistributed amounts so accounted to be held for purposes of the state and local income tax holding account beginning after December 31, 2026. (Under current law, undistributed amounts are required to be held in reserve separate from the state general fund.) Requires the budget agency to present each December to the budget committee a report of the following: (1) An estimate of the monthly certified distribution amounts for the immediately succeeding calendar year. (2) A description of the method used to determine the monthly estimates. Beginning in 2028, requires the budget agency to make monthly transfers to the state and local income tax holding account of the amount determined for the month in the budget agency's report to the budget committee. Repeals a provision that requires the budget agency to adjust the certified distribution of a county for the succeeding year following a tax rate change. Requires the department to develop and maintain a property tax transparency portal through which taxpayers may: (1) compare the property tax liability in their current tax statement compared to their potential property tax liability based on changes under a proposed tax rate; and (2) provide taxpayer feedback to the department. Prohibits the northern Indiana commuter transportation district from issuing new bonds after May 9, 2025, that are payable in whole or in part from amounts distributed from the commuter rail service fund or the electric rail service fund. Requires all school corporations that adopt a resolution for an operating referendum tax levy that is imposed for the first time with property taxes first due and payable beginning after 2027 to share revenue with certain charter schools. Requires, beginning with distributions in 2028, that all school corporations begin sharing revenue from the school corporation's operations fund levy with certain charter schools. Provides for the phasing in of the sharing of revenue with certain charter schools from the school corporation's operations fund levy. Provides for the appointment of additional board members to the governing board of a charter school that receives property tax revenue. Sets forth additional procedures related to the closure of a charter school. Dissolves the Union School Corporation. Provides that for a fire protection territory established after January 1, 2025, each unit in a territory may not impose a tax rate that exceeds $0.40 per $100 of assessed valuation. Makes conforming changes. Makes technical corrections. Makes an appropriation.
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108 provisions identified: 39 benefits, 28 costs, 41 mixed.
Automatic property deductions grow through 2030
Property eligible under categories (2) through (4) of Indiana's excessive property-tax credit receives an automatic assessed-value deduction. The deduction is 6% for 2025 assessments, 12% for 2026, and 19% for 2027. It rises to 25% for 2028, 30% for 2029, and 33.4% for 2030 and later. County auditors apply it without an application. The same schedule covers eligible mobile and manufactured homes not assessed as real property.
Home tax relief for disabled veterans
Qualifying disabled veterans receive a deduction for a home provided free by a federally tax-exempt organization. Veterans need at least 90 days of service, an honorable discharge, and qualifying records showing at least 50% disability. The stated deduction is 50% of assessed home value for disability ratings from 50% to under 60%. Totally disabled veterans receive a 100% deduction. Claimants cannot also claim the two specified veteran deductions for the same assessment date.
More seniors qualify for property-tax relief
Beginning January 1, 2025, income limits rise for the existing senior homestead property-tax credit. The single-return limit doubles from $30,000 to $60,000; the joint-return limit rises from $40,000 to $70,000. Limits adjust annually for Social Security cost-of-living increases. Applicants must meet the age-65 and homestead requirements, or qualify as surviving spouses. The $240,000 property-value disqualification applies only to initial applicants who applied after December 31, 2022, and before January 1, 2025.
Larger supplemental deductions for homeowners
The law increases the supplemental deduction, which reduces the home value subject to property tax. For taxes first due in 2025, rates are 37.5% on the first $600,000 and 27.5% above that, after the standard deduction. Rates on value remaining after the standard deduction are 40% in 2026, 46% in 2027, and 52% in 2028. They rise to 57% in 2029, 62% in 2030, and 66.7% in 2031 and later. Homeowners must qualify for the standard deduction; the supplemental deduction cannot exceed 75% of gross assessed value.
Homeowners lose the standard homestead deduction
The law phases out the maximum standard homestead deduction by assessment year. The limit is $48,000 in 2025, $40,000 in 2026, $30,000 in 2027, $20,000 in 2028, and $10,000 in 2029. It reaches zero with the 2030 assessment date. The same schedule covers qualifying mobile and manufactured homes assessed as real property. This deduction change increases taxable home value; the tax effect depends on the home's value and tax rate.
Tighter limits on home repair deductions
The residential rehabilitation deduction covers only qualifying work completed before January 2, 2017, and assessment dates before January 1, 2025. It expires January 1, 2027. The deduction is the smaller of the assessed-value increase or $18,720 per dwelling unit, generally for five years. Local ordinances can extend it to 15 years for qualifying abandoned or vacant property. Beginning January 1, 2025, owners cannot combine remediation or redevelopment deductions with listed overlapping deductions for the same property.
Cities can add local income taxes
Beginning January 1, 2028, qualifying cities and towns can add an income tax of up to 1.2%, beyond county taxes. Eligibility generally requires at least 3,500 residents, subject to statutory population rules and elections. The tax covers resident local taxpayers and nonexempt professional athletes competing there; revenue supports general municipal spending. Under timing rules effective July 1, 2027, ordinances adopted by October 1 take effect the following January 1. Later ordinances take effect January 1 of the second following year; after December 31, 2030, rates require annual renewal.
Home energy property deductions end
Solar, wind, hydroelectric, and geothermal device deductions cover only assessment dates before January 1, 2025; their sections expire January 1, 2027. Wind, hydroelectric, and geothermal deductions cover the assessed-value increase caused by the device. Hydroelectric and geothermal devices must have been installed after December 31, 1981; claimants must own or be buying the property when filing. Solar devices must have been installed after December 31, 2011; electricity-provider exclusions retain net-metering, feed-in-tariff, and qualifying on-site-use exceptions. Wind devices generally exclude electricity providers, with an exception for participation in an electric utility net-metering program.
Local property tax relief sources expire
County property tax relief rates and their governing tax chapter expire December 31, 2027. Lake County ordinances under the covered allocation provision also expire that day, ending their funded credits. The Lake County allocation section expires July 1, 2028. Beginning January 1, 2028, covered local governments also lose authority to fund specified homestead credits with economic-development revenue. The law does not state each household's lost credit amount.
Narrower deductions for trust-owned homes
The trust-held property deduction pathway applies only to assessment dates before January 1, 2025, and expires January 1, 2027. The county auditor must confirm that the occupant has a beneficial trust interest or qualifying rent-free occupancy right. The occupant must also qualify for the underlying deduction. The related homestead definition covers this trust-owned residence pathway only while the referenced trust deduction section remains available.
Surviving spouses lose older veteran deduction
The $18,720 assessed-value deduction for qualifying surviving spouses covers only assessment dates before January 1, 2025. The deceased spouse must have served before November 12, 1918, and received an honorable discharge. The survivor must own or be buying the property when filing and cannot also claim the section 13 veteran deduction. This deduction section expires January 1, 2027.
Enterprise-zone property deduction winds down
The obsolescence deduction for enterprise-zone property in a county containing a consolidated city covers only assessments before January 1, 2025. The property must have received an obsolescence depreciation adjustment in the assessment year before purchase. Owners must apply and obtain county fiscal-body approval. Claims can last no more than four years after purchase, and the section expires January 1, 2027.
Farm storage improvement deductions end
The fertilizer and pesticide storage improvement deduction covers only assessment dates before January 1, 2025. It deducts the assessed value attributable to qualifying improvements. Owners must own or be buying the property on the assessment date and file a certified statement with state chemist certification. The section expires January 1, 2027.
County income taxes can fund homeowner credits
Beginning July 1, 2025, counties can adopt an income tax to fund uniform credits for homesteads eligible for the 1% property-tax limit. Rates must use 0.01% steps and cannot exceed 0.3%. Credits apply after other applicable credits and exclude voter-approved referendum taxes. Revenue can only replace the county property-tax levy. This authority expires January 1, 2028.
New limits for county income taxes
Beginning July 1, 2027, counties can authorize income-tax components totaling up to 2.9% of residents’ adjusted gross income. Caps are 1.2% for county services, 0.4% for fire and emergency medical services, and 0.2% for nonmunicipal units; together, these cannot exceed 1.7%. Another 1.2% municipal-services component applies only outside municipalities eligible to adopt their own rate; maximum rates are not automatic. Existing expenditure rates continue into 2028 only with renewal by October 1, 2027; later rates can start in 2029. Generally, ordinances adopted by October 1 start the next January 1, later ordinances start a year later, and the last two components require October 1 adoption.
Disabled veterans get property tax credits
A $150 property tax credit covers honorably discharged veterans with at least 90 days of service and a total disability. Veterans age 62 or older also qualify with a disability of at least 10%. A separate $250 credit covers honorably discharged wartime veterans with a service-connected disability of at least 10%. Qualifying surviving spouses can claim these credits; the $150 credit also covers survivors of service members killed in action or who died during active duty or inactive duty training. Claimants must own the property or buy it under a recorded contract, provide approved disability documentation, and file by January 15 of the tax-payment year. Neither credit can be combined with the chapter's section 1 credit, and sellers cannot claim a credit when their purchase contract makes the buyer responsible for property taxes.
Homeowners get an automatic tax credit
For property taxes first due in 2026 onward, eligible homeowners get a credit equal to 10% of eligible taxes. The credit cannot exceed $300 a year. It covers people who qualify for the standard homestead deduction and surviving spouses married at death to someone who qualified. Taxes imposed through a voter-approved referendum or local public question do not count toward the credit. County auditors apply it automatically, without an application.
Seniors get a property tax credit
Beginning January 1, 2025, qualifying seniors get a $150 annual property tax credit on their residence. Claimants must be 65 by the prior December 31 and have owned or held a qualifying purchase contract for at least one year. Income from two years before the tax-payment year cannot exceed $60,000 for single filers or $70,000 for joint filers or qualifying co-owners. An unmarried surviving spouse can qualify at 60 if the deceased spouse was at least 65. Only one credit applies per property, reduced for shares held by co-owners under 65. File with supporting documents by January 15; eligible recipients need not refile the next year but must report ineligibility within 60 days.
Hancock County library tax credits allowed
Beginning July 1, 2027, Hancock County may allocate up to 0.15% of its local income tax rate to library property tax credits. This authority lasts only before the funding tax expires on December 31, 2027. All county territory must be in a library district. A participating library must have reciprocal borrowing agreements with every other public library in the county. The law does not set an individual credit amount.
New fire territories face tax cap
The law caps the applicable fire territory property tax rate at $0.40 per $100 of assessed value. The cap covers provider and participating units in territories established by ordinances or resolutions adopted after December 31, 2024. It limits the rate, but does not guarantee a reduction from a property's current tax bill.
Vehicle tax credits survive deduction changes
Beginning January 1, 2027, eligible owners can use remaining qualifying property-tax deductions toward vehicle excise tax for the same payable year. This credit equals $2 per $100 of taxable vehicle value, or a major portion, limited by the deduction left after real and personal property deductions. A separate credit preserves pre-expiration eligibility rules for specified veterans, disabled or older people, and surviving spouses. It provides the lesser of $70 or the vehicle’s excise tax, for up to two vehicles. Applicable service, age, disability, property-ownership, and documentation requirements remain; the two credits cannot be combined.
Businesses keep qualifying county property exemptions
Beginning July 1, 2027, the county adopting body replaces the local income tax council in managing new personal property exemptions. It can adopt, amend, or repeal an exemption ordinance, with notice and a public hearing required before adoption. Property exempt when placed in service keeps its exemption even if the county later changes or repeals the ordinance. The exemption also survives an ownership change; property not exempt when placed in service does not gain this protection.
Enterprise district businesses gain valuation relief
Beginning January 1, 2025, qualifying depreciable business property in entrepreneur and enterprise districts avoids minimum tax-valuation limits. The owner must place the property in service after the district is designated. At least one employee must use the property there and perform most of their service in the district. Removing the valuation floor can lower taxable value and property taxes.
More business equipment earns tax breaks
Approved new farm, research, distribution, and information technology equipment joins manufacturing equipment in qualifying for economic revitalization tax deductions. Owners must submit a benefits statement before the applicable hearing or equipment installation. The local approving body must find that estimated costs and applicable benefits justify the deduction. That body sets the deduction schedule, generally for no more than 10 years. Specified hazardous-waste convictions, orders, or consent decrees disqualify manufacturing equipment directly used to dispose of hazardous waste.
More business equipment qualifies for exemption
Businesses qualify for a county personal-property tax exemption when their total acquisition cost falls below the applicable limit. The limit rises from $80,000 for pre-2025 assessments to $1 million for the 2025 assessment. It rises again to $2 million for 2026 and later assessments. Businesses must declare the exemption on their returns. Savings depend on the property and local tax rates.
Local property-tax increases need separate approval
Beginning January 1, 2029, local property-tax levies generally cannot exceed the previous budget's levy, even when assessed values grow. Tax rates must decrease as assessed values rise, unless officials authorize an increase. An increase requires a separately noticed public hearing and an ordinance stating the reasons, dollar increase, and percentage rate increase. Officials must adopt the ordinance at least 15 days before the budget hearing. Increases remain subject to other legal limits.
Blind and disabled homeowners lose deduction
The $12,480 assessed-value deduction for blind or disabled residents applies only to assessment dates before January 1, 2025. The section expires January 1, 2027. Applicants must be blind or have a qualifying disability and principally live in the property. Their taxable gross income for the prior calendar year cannot exceed $17,000. Later assessment dates no longer qualify for this deduction.
Broader income tax for county nonresidents
Beginning January 1, 2028, local tax rules remove an income limit for taxpayers who are not county residents. Previously, the limit counted only income from their principal business or workplace. More of an affected taxpayer’s adjusted gross income can now enter the local tax calculation. The law does not specify each person’s added tax.
Grant County can authorize jail taxes
Beginning July 1, 2027, Grant County’s county adopting body controls the authority to impose an additional jail income tax. The tax funds jail facilities and related bonds or leases. Its rate cannot exceed 0.5% or the rate needed, whichever is lower. The county must first repeal the ordinance provision directing 0.01% of special-purpose-rate revenue to the Grant County Economic Growth Council, Inc. The law authorizes the tax; it does not automatically impose it.
Local debt can sustain taxpayer costs
Beginning July 1, 2025, the state finance department can authorize property-tax levy increases for covered debts, judgments, and lease rentals. This authority overrides the new levy limit, but other property-tax and school levy limits still apply. Beginning January 1, 2028, officials cannot reduce covered income-tax rates below the required debt-support level. Revenue must cover 1.25 times the specified highest annual debt service, lease payments, and required reserve deposits. The rate-reduction restriction does not apply when sufficient tax revenue is pledged for the full bond or lease term.
Senior homeowners lose an older deduction
The senior property-tax deduction applies only to assessment dates before January 1, 2025; its section expires January 1, 2027. The deduction is the lesser of half the assessed value or $14,000, with a $240,000 property-value cap. Applicants must be at least 65, except qualifying surviving spouses, and meet ownership and residency requirements. Stated income limits are $30,000 for single returns and $40,000 for joint returns, with separate co-owner rules. Annual cost-of-living adjustments to the applicable income limits begin with the January 1, 2023 assessment date.
Veterans lose two property tax deductions
Two veterans’ assessed-value deductions apply only to assessment dates before January 1, 2025; both sections expire January 1, 2027. The $24,960 deduction requires wartime service, honorable discharge, and a documented service-connected disability of at least 10%. The $14,000 deduction requires at least 90 days’ service and honorable discharge. That second deduction also requires total disability, or age 62 or older with at least 10% disability. Qualifying surviving spouses can also claim these deductions for the earlier assessment dates.
Property owners cannot stack repair deductions
Beginning January 1, 2025, owners cannot combine an economic revitalization deduction with specified deductions for the same repairs or improvements. The restriction involving deductions under sections 18 and 22 expires January 1, 2033. A separate restriction bars combining that deduction with the section 28.5 deduction for the same property while that deduction remains available.
Counties recover improper homeowner tax deductions
County auditors can recover taxes, interest, and penalties for an improper standard homestead deduction, with findings made within three years after taxes were first due. Payment normally is due within 30 days. Owners get one year without interest or penalties when the auditor made an error and the owner failed to return the specified expired verification form. A good-faith buyer without knowledge of the finding is protected from a lien for the additional taxes and penalties. Counties must place collections in a dedicated fund; outside consolidated-city counties, annual deposits are capped at $100,000 after specified contract costs, with excess going to the general fund. Spending requires county approval and is limited to deduction-eligibility investigations and other auditor-office expenses.
Homeowners can defer taxes through counties
Beginning July 1, 2025, counties can adopt tax-deferral programs by November 1 before the first tax-payment year, starting in 2026. Eligible homeowners can defer $100–$500 yearly, up to $10,000 total, with interest up to 4%; deferred taxes become a lien. Applicants need five years of qualifying ownership, principal-residence use with a health-care-facility exception, no overdue tax-statement charges, and any county-set qualifications. Deferred taxes, other liens, and mortgage principal together cannot exceed assessed value; lienholders must approve, and remaining payments cannot use escrow. Apply by January 15 and sign an agreement before March 1 each deferral year; repayment generally comes due 180 days after death, loss of principal-residence use, or loss of a qualifying ownership interest, subject to surviving-spouse protections. The person responsible for taxes must report covered residence, ownership, or surviving-spouse changes, and recorders must record deferral, payment, and termination papers free.
Property tax relief for disabled homeowners
Beginning January 1, 2025, blind homeowners and homeowners with a qualifying disability get a $125 property tax credit. Claimants must own their main residence or buy it under a recorded contract. A qualifying disability prevents substantial paid work and is expected to cause death or last at least 12 continuous months. Disability claimants must provide proof; those outside federal Social Security coverage must pay for an examination using Social Security standards. Claimants cannot also receive the credit under IC 6-1.1-20.6-8.5. File supporting documents with the county auditor by January 15 of the tax-payment year; eligible recipients need not refile the next year.
Project location controls movers' local taxes
Beginning January 1, 2028, a special rule applies to people moving during the year to start project employment or business. The move must make them local taxpayers where the qualified economic development tax project is located. Only the county or municipality containing that project can tax the income attributable to it. The rule sets the taxing location, not whether the person's tax rises or falls.
Residence reshapes who owes local taxes
Beginning January 1, 2028, local income-tax residence follows your January 1 home, not your principal workplace or business. Moving to another county or municipality later does not change that year’s local tax liability. Municipal tax status follows residence; a work-only connection does not qualify someone for that municipal tax. County work-based tax categories remain, and certain team and race team members face a county rate on Indiana-apportioned service income. That special rule covers team members who do not qualify through county residence or a principal business or workplace.
School transportation levy appeals phase out
Schools can seek higher operations levies for levies imposed before January 1, 2026; the appeal authority expires December 31, 2026. Appeals cover specified transportation cost increases of at least 10% or necessary bus purchases under an adopted replacement plan. Schools must show transportation cannot continue without more money and file before October 20 of the preceding year. Schools subject to fiscal-body budget review need that body's approval; the state can grant less than requested. Beginning July 1, 2025, approved transportation appeal amounts count toward maximum operations levies only while the appeal provision remains available.
Farm property gets new valuation rules
For assessments beginning in 2023, agricultural improvements cannot use residential, commercial, or industrial adjustment factors; other parcel portions use similar-property factors. Beginning January 1, 2025, the state calculates the land base rate by March 1 using a six-year average, excluding the highest-value year. When the preliminary base rate is at least 10% higher than the prior final rate, capitalization is 9% for 2025–2026. That rate is 8% for assessment dates before 2025 and after 2026; it is 6% when the preliminary rate is at least 10% lower, and otherwise 7%. The chosen rate also recalculates values in the average, so tax effects depend on the resulting assessment and local rates.
New districts face lower property-tax caps
Special benefits districts established after December 31, 2024, face a lower property tax rate cap. Their rate cannot exceed $0.05 per $100 of assessed value, rather than $0.0667. Actual bills depend on property value and the rate the district sets.
School candidates keep prior residency credit
People who lived in territory annexed from Union School Corporation receive credit for that earlier residence in the successor district. This applies only to the school candidacy residency requirement, not general residency status.
County income taxes need annual renewal
After December 31, 2030, county expenditure income-tax rates expire each December 31 unless local officials renew them. Renewal requires an ordinance for the succeeding year, even when the rate and its parts remain unchanged. Without renewal, the rate ends.
Cross-border workers gain potential tax exemptions
Beginning January 1, 2028, Indiana counties and municipalities can make local income tax reciprocity agreements with local governments in other states. Agreements provide reciprocal exemptions for resident taxpayers' income to the extent stated in the agreement. The agreement must also take effect in the other jurisdiction. Indiana's Department of Revenue must approve its form and start date; no exemption applies automatically.
More filing time for homeowners
The homestead deduction filing deadline moves from January 5 to January 15 in the year taxes are first due. Applicants must complete, date, and file the certified statement by then. Any required recording must also be completed by January 15.
Fire and ambulance providers gain funding
Beginning July 1, 2027, eligible fire and emergency medical service providers can seek next-year public safety tax distributions. Applications are due before July 1, including from qualifying providers not otherwise entitled to distributions. Officials can allocate up to all revenue from the public safety rate portion not exceeding 0.05% to specified fire providers. Those allocations follow the assessed value of served real property, excluding land. Township applications require a noticed hearing when the township provided services and levied property taxes for them in the prior year; resolution and filing deadlines also apply.
Changed public projects need another vote
At least 10 property owners or registered voters can request a hearing on changes to a voter-approved controlled project. They must petition within one year after final approval. A finding of material change requires a new public vote. The ballot must show the project term, maximum principal and financing costs, annual levy, and estimated annual median-home tax increase. The local government cannot proceed with the changed scope if voters reject it or no petition is filed.
Schools face a project financing pause
Schools face a one-calendar-year pause after the final year of a previously approved controlled-project referendum levy. During that year, the school corporation cannot adopt a preliminary resolution for covered bonds or leases. It also cannot adopt a resolution extending a referendum levy.
Taxpayers get online property tax comparisons
The Department of Local Government Finance must maintain an online tool comparing current property taxes with taxes under proposed rates. Taxpayers can also send feedback to the department and local governments. The law specifies a January 1, 2026 availability deadline, although this provision takes effect July 1, 2026. The tool itself does not change tax bills.
School operating ballots explain home taxes
Beginning July 1, 2025, operating referendum ballots identify the school, purpose, duration, maximum tax rate, and maximum annual levy. New-levy ballots show the estimated annual tax increase for a median home and the latest operating referendum’s year and outcome within five years. Levy-extension ballots instead show the median home’s annual tax decrease if rejected and identify the original referendum’s year and rate. Extensions cannot exceed eight years. Specified extension resolutions certified after March 15, 2016, are exempt from the new-levy ballot requirements and follow the extension requirements.
School safety votes get clearer disclosures
Beginning July 1, 2025, covered school safety referenda require school website disclosures at least 30 days before the general-election vote. In Lake, Marion, St. Joseph, and Vanderburgh counties, this covers resolutions adopted after May 10, 2023, and participating charter schools. Disclosures include ranked position salaries, individual-salary links, crime acknowledgment and audit information, student-group and race enrollment, graduation rates, and five-year teacher retention data. Beginning January 1, 2026, safety ballots show maximum duration, tax rate, annual levy, and the median home’s annual tax increase using required rounding; they also report the latest safety vote within five years. Extension ballots show the median home’s tax decrease if rejected and identify the renewed referendum’s year and rate.
School voters get more referendum information
School corporations and participating charter schools must post disclosures at least 30 days before covered general-election referendum votes. Disclosures include salaries ranked by position, Gateway and audit links, enrollment by student group and race, and graduation rates. They also include five years of teacher-retention rates and a required crime acknowledgment. Beginning July 1, 2025, county auditors work with the state finance department annually on covered school referendum ballot calculations. Auditors calculate the rate needed for the maximum annual levy and other required ballot information.
Local development money gets broader uses
Beginning January 1, 2028, counties, cities, and towns have broader uses for revenue allocated for economic development. Allowed uses include financing, capital projects, operating costs, venture capital funds, and lawful purposes available to another fund. This does not create household payments or directly change individual tax bills.
Marion County gains service funding options
Beginning July 1, 2027, Marion County can use general-purpose revenue for libraries, public transportation, and public communications and computer facilities. Allocations follow the county fiscal body’s election under the applicable law. They are no longer limited to revenue that otherwise goes out as certified shares. The law sets no funding amount and does not require an allocation.
Charter schools receive operations tax shares
County auditors must distribute qualifying school operations levy revenue to eligible charter schools, excluding virtual charter schools and adult high schools. For 2025–2027, this covers specified school corporations’ levies imposed after June 30, 2024, and before January 1, 2028. Annual distributions follow the new statutory rule beginning in 2028. Receiving schools must create an operations fund and deposit these distributions there. Beginning July 1, 2025, they must also establish an education fund for student instruction and learning.
Charters share qualifying school referendum money
County auditors must share qualifying operating and safety referendum revenue with eligible charter schools, excluding virtual schools and adult high schools. In Lake, Marion, St. Joseph, and Vanderburgh counties, participating schools share qualifying safety levies approved after May 10, 2023. Their shares use resident student enrollment counts and continue for the levy’s full term. That rule excludes levies first imposed for taxes payable in 2028 or later; separate sharing formulas cover qualifying later levies.
Network charter schools gain financial protections
School corporations generally cannot charge participating innovation network charter organizers more for goods and services than their specified operations levy receipts. An agreement entered before July 1, 2024, can provide a different rule. School corporations also cannot change the use of an occupied network charter facility without the organizer's written agreement. That protection lasts while the charter remains a participating innovation network school.
Counties can direct leftover tax money
A county financial plan may state how to use local income tax revenue left after the plan's needs are met. The plan can direct that money to property tax relief before that authority expires, or treat it as additional revenue. This option does not guarantee a household tax cut or payment.
Local debt payments keep pledged revenue
Beginning July 1, 2027, officials cannot cut a local taxing unit’s general-purpose revenue share below covered debt-payment needs. The protection includes required reserve deposits for obligations secured by that revenue. It also protects required payments to the Northwest Indiana Regional Development Authority for covered rail and development obligations. The rule protects local financing rather than setting household tax bills.
Local property levy growth stays limited
For 2026, local levy limits use 80% of calculated growth above 1.00, with the growth quotient capped at 1.04. This applies to civil taxing units and school operations funds. The law also removes the assessed-value growth appeal, whose former qualifying quotient was at least 1.02. Goshen loses its special levy adjustment for specified costs of the 1925 police and 1937 firefighters' pension funds. These limits do not set any household's final tax bill.
Local tax distribution methods stay longer
The local income tax distribution method used before July 1, 2027, continues throughout 2027. The calculation for 2027 certified distributions also applies in 2028 and 2029, despite new county or municipal tax rates. This preserves the distribution method among local governments, not household tax rates.
More local projects face public review
New debt-service rate thresholds bring bond- or lease-funded projects into controlled-project review for preliminary decisions after June 30, 2025. Thresholds are above $0.40 per $100 of assessed value for schools and $0.25 for cities, counties, or towns. Other local units have a $0.05 threshold. Voter-approved referendum debt rates do not count, and listed project exclusions remain. Projects with a qualifying public hearing before July 1, 2025, are excluded.
Steel mini-mills gain equipment valuation option
Beginning January 1, 2025, mini-mill taxpayers can elect a special equipment valuation method on their business personal-property returns. It multiplies adjusted cost by the applicable Pool No. 5 percentage, without the minimum valuation limit. Eligible steel-production equipment excludes special tools and permanently retired property and includes equipment used by qualifying affiliates. The election binds all the taxpayer’s mini-mill equipment statewide for that assessment date and also covers later acquisitions. Other property can qualify when mini-mill equipment accounts for at least 50% of its adjusted cost.
Towns gain population-based tax choices
Beginning July 1, 2027, cities and towns crossing the 3,500-person census threshold can elect to retain their prior population-based tax treatment. They must adopt an ordinance by September 1 of the year after the relevant federal census, effective the next January 1. Separately, municipalities with more than 3,500 but fewer than 7,000 residents can elect treatment as having fewer than 3,500. That election starts the next January 1, is irrevocable, and survives later federal censuses. These choices affect local income-tax rates and distributions, without guaranteeing lower household taxes.
Tax filers must identify their main home
Indiana individual income-tax filers must give the address of their main home on their returns. The rule takes effect January 1, 2027, and covers tax years beginning in 2025 or later. It adds a reporting requirement without changing the tax owed.
Employers must track municipal tax withholding
Beginning January 1, 2028, employers must report withholding amounts for each municipality imposing the specified municipal income tax. They must include this breakdown when sending withheld taxes and in their annual withholding report. This reporting rule does not itself change tax rates.
Charter schools face referendum advocacy limits
Charter schools that may receive operating or school safety referendum levy revenue face the same referendum-promotion restrictions as school corporations. The rule limits school advocacy, not household speech.
Local tax votes move to November
Beginning July 1, 2025, school operating, school safety, and covered major capital project questions appear only at general elections. Local officials must certify each question by noon on August 1. The law narrows election timing without itself approving a tax.
Local governments face bond waiting period
Covered local governments must wait one year after certain short-term general obligation bonds expire before issuing new general obligation bonds. The trigger includes qualifying bonds issued for two years or less, including those issued before May 1, 2025. The covered borrowing rules concern property-tax-backed bonds of up to five years for projects outside controlled-project approval procedures. The waiting period does not apply when the state finance department finds a natural disaster, accident, or another unanticipated emergency.
Local rainy day funding narrows
Beginning July 1, 2026, local governments lose one allowed source for rainy day funds. They can no longer use unused, uncommitted funds covered by the specified local income tax provision. Other lawful sources listed in the fund’s ordinance or resolution remain available.
Charter funding requires public budget deadlines
Starting with 2026 referendum distributions, charter schools must adopt a current-year budget by October 15. They must present it to their board publicly at least 10 days before adoption. The budget, compliance dates, and attestation are due November 1. Missing these steps costs the school that year’s distribution. The auditor withholds the money and shares it among the school corporation and remaining eligible charters the following year.
Charter schools face operating fund limits
Charters receiving the specified operations levy distributions must limit spending to allowed facility, capital, transportation, overhead, and playground costs. Capital spending over $10,000 generally needs a board-approved plan after a public hearing; bus replacement also needs an approved plan. The fund cannot buy non-maintenance vehicles or equipment used mainly for sports or extracurricular activities. Covered student transportation costs must come from this fund. Emergency plan changes are exempt from the usual adoption deadlines and procedures.
Fire territories face tax allocation limits
For fire territories established by measures adopted after December 31, 2024, county approval is required for certain extra income tax allocations. This applies when creating the territory raises the property tax levy and produces extra income tax revenue for its provider unit. The rule assigning parts of a fire territory’s levy to participating units applies only to specified distributions or development allocations before January 1, 2028.
Lake County development revenue falls
Beginning July 1, 2027, economic development allocations in Lake County certified distributions face these reductions: Lake County 25%; Crown Point 10%; Dyer 15%; Gary 7.5%; Hammond 15%; Highland 12%; Hobart 18%; Lake Station 20%. The remaining reductions are Lowell 15%; Merrillville 22%; Munster 34%; New Chicago 1%; Schererville 10%; Schneider 20%; Whiting 25%; and Winfield 15%. These percentages reduce local development revenue, not household tax rates.
Resource recovery systems lose tax deduction
The resource recovery system deduction, generally 95% of assessed value, applies only to assessment dates before January 1, 2025. The section expires January 1, 2027. Systems must have environmental certification for 1993 or earlier and a timely deduction application for the 1993 assessment year. Systems directly used for hazardous-waste disposal are excluded under the specified conviction, order, or consent-decree conditions.
State delays some new local-tax revenue
Beginning January 1, 2028, the state holds back revenue from qualifying local income tax rates first imposed after 2027. The holdback equals 5% of each of the first three annual certified distributions from the new rate. The money goes into the county's or municipality's trust account instead of its initial distributions. This delays local access to revenue; it does not directly change household tax liability.
Counties apply property credits in order
Beginning January 1, 2025, the credit under Indiana Code chapter 6-1.1-51.3 has a set place in property-tax calculations. Counties apply it after the excessive property-tax credit under section 6-1.1-20.6-7.5 and before other listed credits. The law does not change any credit's stated amount.
Emergency building repairs can bypass review
Beginning July 1, 2025, the state finance department can waive specified controlled-project rules for emergency building maintenance. The building must be owned or leased by the local government. The government must request a waiver and provide required information; the department must decide within 45 days. The law also removes the referenced project category's December 31, 2025, expiration.
Local debt projects face more public review
For bond or lease decisions after June 30, 2025, additional projects face public notice, hearings, and petition review. Covered debt-service rates per $100 of assessed value are above $0.40 through $0.70 for schools, above $0.25 through $0.40 for cities, counties, and towns, and above $0.05 through $0.10 for other units. Projects above those upper limits enter a high-rate category requiring voter approval before property taxes fund covered debt. That category bypasses the specified petition procedures; other covered categories require voter approval directly or after a sufficient petition. Voter-approved referendum debt rates do not count toward these thresholds, and projects heard before July 1, 2025, are excluded.
Project votes show costs at general elections
Beginning July 1, 2025, covered project ballots show the maximum tax term, principal and financing costs, and annual levy. They also show the annual tax increase for a median home, using its assessed value rounded up to the next $50,000. These figures replace average percentage increases for homes and business property. Approved questions must reach the county election board by noon August 1 for the next general election. Primary, municipal, and specified special-election options are removed.
Counties appoint members to charter boards
Beginning July 1, 2025, covered charter schools receiving property-tax revenue must have a county-appointed board member. The county executive where the organizer is incorporated makes the appointment, including for organizers operating in several counties. Appointees cannot currently serve on a school corporation board or work for a school corporation. Covered charters must confirm that at least one board member is appointed through this process.
Union schools split between neighboring districts
On July 1, 2027, Union School Corporation and its governing body are dissolved. Its Henry County territory joins Blue River Valley Schools, and its Randolph County territory joins Monroe Central School Corporation. The successor corporations must begin any needed board-composition planning by July 1, 2025. Required plans must be adopted and effective by May 15, 2027. The law does not specify changes to school services or household tax bills.
Local fire funding follows new formulas
Beginning July 1, 2027, eligible fire and emergency medical providers receive county tax shares based on population plus 20 times service-area square miles. Population uses the latest federal decennial census; county councils can also fund township and volunteer departments. Separately, matching local ordinances or resolutions require a restricted fire-territory fund and annual levies for operating costs. Its balance cannot exceed 120% of budgeted expenses, and next-year levies must reflect deficits or surpluses. Equipment-fund surplus transfers cannot exceed 5% of that fund's levy and need matching approval from every participating unit.
Northwest Indiana revenue must fund regional projects
Covered local governments must use general-purpose revenue allocated for economic development first to fund a rail project. The State Comptroller withholds the state finance department's determined amount and pays the Northwest Indiana Regional Development Authority. Beginning January 1, 2028, Porter County must direct its first $3.5 million in qualifying annual revenue to required regional transfers. Porter County cannot reduce its allocation below the amount needed for its rail and other specified project obligations.
Northwest rail funding gains new rules
Beginning July 1, 2027, local units that previously committed support can use any legally available revenue for covered rail projects. This includes economic development allocations, transferred to the Northwest Indiana Regional Development Authority before local certified distributions. Beginning January 1, 2028, the comptroller must withhold qualifying previously committed general-purpose revenue and send it to that authority. Since May 10, 2025, the Northern Indiana Commuter Transportation District cannot issue new debt backed by commuter or electric rail service funds. It can refinance outstanding debt originally incurred before that date.
Local debt gets revenue protections
While covered bonds or leases remain, pledged revenue cannot fall below 1.25 times the highest annual debt service, plus the highest annual lease payments. Other specified bodies can pledge general-purpose revenue to help meet that level. For obligations incurred after May 9, 2025, pledges cannot exceed 25% of a taxing unit’s certified distribution; this cap expires July 1, 2027. County fiscal bodies pledging income taxes for bonds can promise not to repeal or change the tax in ways that harm bond owners.
Charter schools share local operating funds
A temporary rule shares school operations levy revenue by student counts in Lake, Marion, St. Joseph, and Vanderburgh Counties. Effective January 1, 2025, through December 31, 2027, it covers revenue collected after June 30, 2024, and before January 1, 2028. Distressed school corporations, virtual charter schools, and adult high schools are excluded; eligible charters must be in the same county and provide no more than 50% virtual instruction. For 2026 and 2027 payments, charters must meet budget adoption and submission deadlines; withheld shares are redistributed the next year. Separately, a charter school can choose to transfer a proportional share of its operations fund to its local school corporation.
Charter schools share school operating taxes
Starting in 2028, school operating-tax revenue is shared when charter attendance reaches the greater of 100 qualifying students or 2% of spring enrollment. Shares depend on qualifying student counts; virtual charter schools, adult high schools, and students receiving over 50% virtual instruction are excluded. Charters receive 25% of their calculated share in 2028, 50% in 2029, and 75% in 2030. Remaining qualifying revenue goes to the school corporation. Charters must adopt budgets by October 15 and submit budgets, compliance dates, and attestations by November 1 to receive funds.
Charters gain referendum money with limits
Beginning July 1, 2025, auditors share qualifying school operating referendum revenue with participating charters in Lake, Marion, St. Joseph, and Vanderburgh Counties. The rule covers referenda approved after May 10, 2023, but excludes levies first imposed on taxes due after December 31, 2027. Virtual charters and adult high schools are excluded; counted students must live within the school corporation's attendance area and receive no more than 50% virtual instruction. Charters need a certified fall student count from the calendar year before the ballot year. A charter opening after the governing body's referendum resolution vote cannot join that referendum during its term.
Closing charters must repay public funds
Closing charter schools must return unspent money from the specified operations levy distributions to the distributing school corporation. They lose access to future distributions from those levies. Schools closing with debt must repay it using legally available revenue. A school owning a building not purchased through the statutory school-building purchase process must first sell it and apply the proceeds to debt.
New charter shares carry participation rules
Qualifying referendum levies first payable in 2028 or later share revenue using fall enrollment counts for students receiving no more than 50% virtual instruction. Resident charter enrollment must reach the greater of 100 students or 2% of the corporation’s spring enrollment, excluding students receiving more than 50% virtual instruction. Eligible charters need a certified fall count in the year before the ballot question and must not opt out. Covered referendum resolutions must disclose charter sharing; older rules require opting in, while newer rules allow opting out, subject to a statutory school-corporation exemption. Participants enter funding projections and pay enrollment-based referendum costs; opting out is binding for the term, and distributions starting in 2028 require annual budget compliance.
Schools face referendum revenue planning rules
For covered referenda, school corporations must request state education information at least 60 days before their resolution vote; replies are due within 10 days. Resolutions must project charter payments, while spending plans must address possible differences, appear in proposed budgets, and be presented at budget hearings. Beginning July 1, 2025, covered levy-extension resolutions must also identify projected charter payments. Also beginning July 1, 2025, more revenue-sharing arrangements qualify for the statutory exemption when voters receive advance notice of all charter proceeds and required sharing conditions are met. Exempt corporations under the specified referendum rule skip charter participation contacts and exclude charters from projections; covered student information concerns resident K–12 students in the specified nonvirtual-school categories receiving no more than 50% virtual instruction.
Union school taxes go to successors
For the second property tax installment first due in 2027, auditors redirect revenue otherwise collected for Union School Corporation. Revenue from Randolph County property goes to Monroe Central School Corporation. Revenue from Henry County property goes to Blue River Valley Schools School Corporation. This changes which schools receive the money, not the amount taxpayers owe.
Union schools settle debts and assets
Beginning July 1, 2025, Union School Corporation cannot issue new bonds, sign leases, or incur other new obligations. Before dissolution, it must offer buildings and land on the open market, then offer unsold buildings through the statutory purchase process. Property still unsold transfers to Monroe Central School Corporation, which may sell it. Union must first use uncommitted funds and assets to pay existing debts; a June 1, 2027, state appropriation covers any shortfall. By June 30, 2027, remaining assets go to Blue River Valley Schools and Monroe Central, based on Henry and Randolph counties’ respective shares of Union’s taxable assessed value.
Development funding gets revised planning rules
Beginning July 1, 2027, capital planning rules apply to general-purpose revenue allocated for economic development. Plans must list projects, estimated costs, funding sources, and schedules for at least two years. Included projects must cost at least 75% of the unit’s expected share for that period. A county, city, or town without a plan can receive its own share, but not amounts another unit designates for it. Those designated funds earn interest in a separate account and go to other county units after three years without a plan.
Local development funds gain financing flexibility
Beginning July 1, 2027, counties and municipalities can fund economic development revolving loans with eligible local income-tax revenue. Their fiscal bodies can authorize transfers of that revenue and related loan repayments to their economic development income-tax funds. The law also repeals the old economic development distribution formula based on property taxes, including its population-based alternative. Local governments gain financing options but lose that statutory allocation method.
Business equipment gets valuation floors and exceptions
Beginning January 1, 2025, covered business and utility equipment generally has a minimum taxable value of 30% of adjusted cost. The floor covers property placed in service on or before that date, measured within each taxing district. Later equipment generally escapes the floor, except in qualifying pre-2025 tax-increment areas or when its taxes secure debt or other obligations. Equipment not yet in service, special tooling, and permanently retired property are excluded. The floor applies before special adjustments for abnormal obsolescence.
Counties face revised state tax distributions
County-specific accounting and reserve requirements for undistributed income taxes expire December 31, 2027; the old system credited investment income to counties. Beginning January 1, 2028, counties lose supplemental distributions triggered when trust balances exceed 15% of certified distributions. Beginning July 1, 2027, distribution calculations omit the specified adjustment for county or municipal rate changes first effective in the preceding year. The Budget Agency must also account for credits claimed under the two specified local tax credit laws. It can spread credit adjustments across multiple years rather than apply them all at once.
Counties gain spending control over taxes
Beginning July 1, 2027, revenue from the specified county-services income-tax rate goes directly to the county. Counties can use it for public safety, hospitals, economic development, corrections, county judicial staff, and other county purposes. They can also fund homestead credits that replace the county’s property-tax levy. The law repeals the old rule sharing revenue left after public safety and economic development allocations among local units as certified shares. These changes give counties spending choices but end that statutory sharing method.
Counties set taxes and share local revenue
Beginning July 1, 2027, counties can set income-tax rates for nonmunicipal civil units: 0.05% per type and 0.2% combined. Revenue is shared by population; eligible cities and towns can also receive population-based shares under a separate county tax component. Units generally request funds by July 1 of the prior year, with county hearings by August 1; waste districts need required county approvals. Counties can fund requesters or all eligible units, and retain revenue if nobody requests it. In the specified combined-rate case involving a 1.2% county rate, counties retain 75% and municipalities receive 25%, unless counties assign more of their share to municipalities.
Counties take charge of local taxes
On July 1, 2027, county fiscal bodies take over income tax councils’ powers, records, and property; existing ordinances remain binding until changed. County fiscal bodies also become the adopting bodies for county vehicle surtaxes and wheel taxes. City and town fiscal bodies adopt municipal income tax rates. Through May 31, 2027, qualifying single-voting-bloc councils considering increases vote through local fiscal-body resolutions that cannot change that year. Starting January 1, 2028, officials can change rates under the two tax chapters independently or in one ordinance.
Dedicated county service tax authorities end
Beginning January 1, 2028, the law repeals three dedicated county local income tax authorities. They fund public safety answering points, acute care hospital operations, and correctional or rehabilitation facilities. Counties can no longer impose dedicated rates under those provisions. The repeal does not specify replacement funding, resulting household tax rates, or changes to services.
Development zones get tax allocation safeguards
From 2026 through 2033, the state adjusts tax increment financing base values for rate changes caused by specified property deductions. Revenue increases from those changes go only to the base, rather than the development increment. When revenue falls, an area can receive a positive adjustment if it proves one is needed to protect bond repayment. Airport zones established after June 30, 2024, also count 1% homestead land and improvements as residential, alongside residential value used for relief-credit calculations. These are local revenue allocation rules, not direct household credits.
Emergency levy appeals can raise taxes
Civil taxing units can seek higher levy limits when annexation, disasters, accidents, or unexpected emergencies prevent them from carrying out governmental functions. Appeals must include reasonably detailed facts, and the state must determine that an emergency prevents those functions. Continuing annexation costs can support relief in the first year or any of the next four years. Consolidation and other service extensions no longer qualify as appeal grounds. Approved relief can support services but allow higher property taxes.
Fast-growing towns' levy exception expires
The municipal levy-limit exception covers levies imposed after December 31, 2016, and before January 1, 2026. A municipality needs prior-year assessed-value growth at least twice that year's levy growth quotient. Its population must also have increased by at least 150% between the last two decennial censuses. Permitted levy excess is capped at the lesser of assessed-value growth or 6%. The section expires December 31, 2026.
Former levy-freeze counties can raise levies
Beginning January 1, 2028, the law repeals the former levy-freeze tax's rate, reduction, and revenue-use rules. In covered counties, civil taxing units' levy limits increase by the prior year's levy-freeze revenue adjustment, including in later years. Counties may use stabilization funds for operations instead of raising levies immediately. That option requires a multi-year, gradual spend-down plan that combines fund money or other available money with gradual levy increases.
Residential value changes redevelopment tax sharing
Beginning July 1, 2027, qualifying redevelopment areas include residential value in their tax-allocation base when not already included. A larger base leaves less growth in assessed value available to the redevelopment district. The rule covers areas established after June 30, 2025 under IC 36-7-14, or June 30, 2024 under IC 36-7-15.1. Related rules include residential value in military base development district bases and define residential value for qualifying military base reuse areas. For specified post-June 30, 2024 areas, residential value includes 1% homestead categories and residential value used for the designated local property-tax credit before that credit provision expires.
State creates dedicated local tax holding account
Beginning July 1, 2027, the Indiana Budget Agency administers a local income-tax holding account within the state general fund. Monthly estimated transfers begin in 2028. After December 31, 2027, undistributed county amounts are held for the account, and county certified distributions come from it. Money is continuously appropriated and does not revert at fiscal year-end. The account changes public revenue handling, not household tax rates or payments.
Sponsors & Cosponsors
Sponsor
Travis Holdman
Republican • Senate
Cosponsors
Brian Buchanan
Republican • Senate
Chris Garten
Republican • Senate
Craig Snow
Republican • House
Edward Clere
Republican • House
Jack Jordan
Republican • House
Jeffrey Thompson
Republican • House
Linda Rogers
Republican • Senate
Mike Gaskill
Republican • Senate
Scott Baldwin
Republican • Senate
Tyler Johnson
Republican • Senate
Roll Call Votes
Senate vote • 4/15/2025
Senate concurred with House amendments
Yes: 27 • No: 22
House vote • 4/10/2025
Third reading: passed
Yes: 65 • No: 29
House vote • 4/9/2025
Amendment #7 (DeLaney) failed
Yes: 27 • No: 66
House vote • 4/9/2025
Amendment #8 (DeLaney) failed
Yes: 27 • No: 65
House vote • 4/9/2025
Amendment #20 (Porter) failed
Yes: 22 • No: 60
House vote • 4/9/2025
Amendment #24 (Porter) failed
Yes: 23 • No: 60
House vote • 4/9/2025
Amendment #14 (Porter) failed
Yes: 25 • No: 62
House vote • 4/9/2025
Amendment #26 (Porter) failed
Yes: 22 • No: 59
House vote • 4/9/2025
Amendment #16 (Porter) failed
Yes: 24 • No: 61
House vote • 4/9/2025
Amendment #15 (Porter) failed
Yes: 25 • No: 60
House vote • 4/9/2025
Amendment #1 (Campbell) failed
Yes: 27 • No: 64
House vote • 4/9/2025
Amendment #2 (Pryor) failed
Yes: 22 • No: 65
House vote • 4/9/2025
Amendment #11 (DeLaney) failed
Yes: 26 • No: 63
House vote • 4/9/2025
Amendment #3 (Jackson C) failed
Yes: 20 • No: 68
House vote • 4/9/2025
Amendment #36 (Thompson) prevailed
Yes: 70 • No: 27
House vote • 4/9/2025
Amendment #9 (DeLaney) failed
Yes: 27 • No: 64
House vote • 4/9/2025
Amendment #19 (Porter) failed
Yes: 27 • No: 58
Senate vote • 4/9/2025
Roll Call 417 on SB0001.04.ENGH.CON01
Yes: 27 • No: 22
House vote • 4/9/2025
Amendment #22 (Porter) failed
Yes: 25 • No: 57
Senate vote • 2/17/2025
Third reading: passed
Yes: 37 • No: 10
Senate vote • 2/13/2025
Amendment #1 (Qaddoura) failed
Yes: 10 • No: 36
Senate vote • 2/13/2025
Amendment #4 (Young M) failed
Yes: 16 • No: 30
Senate vote • 2/13/2025
Amendment #5 (Young M) failed
Yes: 9 • No: 37
Senate vote • 2/13/2025
Amendment #3 (Young M) failed
Yes: 15 • No: 31
Senate vote • 2/13/2025
Amendment #2 (Young M) failed
Yes: 12 • No: 34
Actions Timeline
Signed by the Governor
4/15/2025SenatePublic Law 68
4/15/2025SenateSigned by the President of the Senate
4/15/2025SenateSigned by the President Pro Tempore
4/15/2025SenateSigned by the Speaker
4/15/2025HouseSenate concurred with House amendments; Roll Call 417: yeas 27, nays 22
4/15/2025SenateCommittee report: Pursuant to Senate Rule 82(e); approved by Rules Committee as amended by the House Committee on Ways and Means.
4/10/2025SenateMotion to concur filed
4/10/2025SenateReturned to the Senate with amendments
4/10/2025HouseThird reading: passed; Roll Call 433: yeas 65, nays 29
4/10/2025HousePursuant to Senate Rule 68(b); reassigned to Committee on Rules and Legislative Procedure
4/10/2025SenateAmendment #19 (Porter) failed; Roll Call 426: yeas 27, nays 58
4/9/2025HouseAmendment #11 (DeLaney) failed; Roll Call 421: yeas 26, nays 63
4/9/2025HouseAmendment #8 (DeLaney) failed; Roll Call 420: yeas 27, nays 65
4/9/2025HouseSecond reading: amended, ordered engrossed
4/9/2025HouseAmendment #2 (Pryor) failed; Roll Call 431: yeas 22, nays 65
4/9/2025HouseAmendment #24 (Porter) failed; Roll Call 430: yeas 23, nays 60
4/9/2025HouseAmendment #22 (Porter) failed; Roll Call 429: yeas 25, nays 57
4/9/2025HouseAmendment #26 (Porter) failed; Roll Call 428: yeas 22, nays 59
4/9/2025HouseAmendment #16 (Porter) failed; Roll Call 425: yeas 24, nays 61
4/9/2025HouseAmendment #15 (Porter) failed; Roll Call 424: yeas 25, nays 60
4/9/2025HouseAmendment #14 (Porter) failed; Roll Call 423: yeas 25, nays 62
4/9/2025HouseAmendment #3 (Jackson C) failed; Roll Call 422: yeas 20, nays 68
4/9/2025HouseAmendment #6 (Jackson C) failed; voice vote
4/9/2025HouseAmendment #36 (Thompson) prevailed; Roll Call 416: yeas 70, nays 27
4/9/2025House
Bill Text
Engrossed Senate Bill (S)
Enrolled Senate Bill (S)
Introduced Senate Bill (S)
Senate Bill (H)
Related Bills
SB 231, Various corrections matters.
Eliminates requirements that the department of correction: (1) maintain farm programs for offenders committed to the department; and (2) prepare a report calculating the savings realized as a result of sentencing changes. Replaces a reference to a rule repealed by the department of correction with a requirement that the custody and treatment of juveniles meet the standards and licensing requirements adopted in the administrative rules of the department.
SB 324, Criminal procedures.
Increases the penalty levels of crimes related to fentanyl. Provides that a court shall consider requiring certain persons charged with a crime of domestic violence to wear a monitoring device as a condition of bail. Requires that a bail hearing for a violent arrestee or a repeat violent arrestee be held in open court and provides that before releasing a violent arrestee or a repeat violent arrestee on bail the court must review the probable cause affidavit or arrest warrant and impose money bail payable by surety bond or cash deposit. Provides that in accordance with IC 27-10-2-4.5(g)(2), a charitable bail organization may not pay money bail on behalf of a violent arrestee or a repeat violent arrestee. Makes conforming changes.
SB 80, Code publication.
Makes Indiana Code publication amendments. Repeals and relocates specific Indiana Code definitions chapters for organization of the defined terms by alphabetical order and to provide for future expansion of the chapters. Makes conforming cross-reference updates. Makes technical amendments to remove tabulation designations from the certain criminal law and procedure sections for consistency with similar statutes and to streamline amendment of those sections. Resolves technical conflicts between various enrolled acts passed during the 2025 legislative session.
SB 453, Various tax matters.
Amends estimated quarterly tax payment provisions. Restructures tax collection requirements for kerosene to eliminate specialized tax filing. Streamlines the filing requirements for gasoline use tax to eliminate multiple filing requirements. Specifies the liability and remittance requirements for the gross retail tax, gasoline use tax, and other listed taxes in certain circumstances. Amends provisions that apply to passenger and household goods carriers. Amends the college savings tax credit. Replaces the term "college choice 529 education savings plan" with "Indiana529 plan". Makes a clarifying change to the closed system cartridge tax. Extends the renewal period from one year to two years for businesses licensed to collect the electronic cigarettes tax, closed systems cartridge tax, and other tobacco products tax. Specifies that the fiscal officer of an entity that has adopted an innkeeper's tax, a food and beverage tax, or an admissions tax must enter into an agreement with the department of state revenue (department) before the department provides certain information to the fiscal officer as required under current law. Specifies when certain tax information may be disclosed by the department. Provides for the transfer of certain funds from the bureau of motor vehicles commission fund to the motor carrier regulation fund. Provides that a person who commits a violation involving a consumer transaction entailing the transportation of passengers or household goods commits a deceptive act that is actionable by the attorney general and is subject to certain remedies and penalties. Specifies remittance procedures for the gasoline use tax. Specifies recapture procedures for certain reduced estimated tax payments. Makes corresponding changes.
SB 464, Financial institutions and consumer credit.
Provides that a reference to federal law in: (1) the First Lien Mortgage Lending Act; (2) the Uniform Consumer Credit Code (UCCC); or (3) the Indiana Code title governing financial institutions; is a reference to the law as in effect December 31, 2024 (rather than December 31, 2023, under current law). Amends the definition of "principal" for purposes of the UCCC provisions governing consumer loans to specify that the term does not include any loan proceeds held as security for the loan. Makes a technical change to the Indiana Code provision governing the prepayment of consumer loans to incorporate a cross reference to the Indiana Code provision setting forth the authorized nonrefundable prepaid finance charge for supervised loans. (Current law references only the authorized nonrefundable prepaid finance charge for consumer loans other than supervised loans.) Amends the definition of "consumer transaction" for purposes of the deceptive consumer sales act (act) to include the provision of a product or service to a: (1) state law enforcement agency; or (2) local law enforcement agency; in Indiana. Amends the definition of "supplier" for purposes of the act to include an entity that provides a product or service to a state or local law enforcement agency in Indiana. Provides that an action that arises from a transaction involving: (1) a state law enforcement agency may be brought and enforced only by the attorney general; and (2) a local law enforcement agency may be brought and enforced only by an attorney acting on behalf of the local law enforcement agency involved in the transaction, unless the local unit of government served by the local law enforcement agency requests the attorney general to bring and enforce an action on behalf of the local unit. Amends the Indiana Code provision governing audit requirements for credit unions to provide that department of financial institutions may establish by policy or rule accounting and auditing standards necessary to define the audit requirements.
SB 371, Workforce matters.
Amends the definitions of "discharge for just cause", "employment", and "gross misconduct" for purposes of unemployment insurance. Provides that an unemployment claimant: (1) is required to verify the claimant's identity before a claim can be filed, and as a condition for continued eligibility; and (2) has the right to request a wage investigation and to appeal the results of the investigation to a liability administrative law judge. Allows an unemployment claimant or employing unit to appeal regarding the claimant's status as an insured worker. Requires that all hearings before an administrative law judge or the unemployment insurance review board concerning disputed unemployment claims be set as telephone hearings, unless an objection is made. Allows a disputed unemployment claim to be directly filed with a liability administrative law judge. Provides that administrative records of the department of workforce development (department) are self-authenticating and admissible in an administrative hearing. Provides that the department may release certain confidential records to the extent permitted by federal law. Makes certain changes regarding the reemployment service and eligibility assessment program. Makes various changes regarding extended unemployment benefits. Provides that repayment of a benefits overpayment may be waived if certain conditions are met. Alters certain fee and payment provisions. Removes or alters notice and delivery requirements and extends certain deadlines. Requires the department to issue a written notice of violation to a person who fails to comply with certain authorization requirements. Provides that the department may assess a civil penalty against a person under certain circumstances. Requires civil penalties collected by the department to be deposited in the proprietary educational institution authorization fund. Establishes the unemployment insurance modernization fund (fund). Requires the department to annually submit a report to the budget committee detailing the expenditures made from the fund during the previous state fiscal year. Requires the department to annually submit a report to the budget committee concerning the status of the department's unemployment insurance program. Provides that the department may establish a reemployment pilot program. Makes conforming changes.