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Bill > HB1075


IN HB1075

IN HB1075
Property taxes.


summary

Introduced
01/08/2025
In Committee
01/08/2025
Crossed Over
Passed
Dead
04/24/2025

Introduced Session

2025 Regular Session

Bill Summary

Property taxes. Provides that, for assessments beginning in 2026, the assessed value of homestead property shall not be subject to annual adjustments (trending), but instead shall be determined based on the assessed value of the homestead on the January 1, 2025, assessment date, the assessed value of the homestead on the first assessment date that it becomes homestead property, if it was not a homestead on the January 1, 2025, assessment date, or the sales price or fair market value of the homestead, if there is a change of ownership after January 1, 2025. Increases the amount of the assessed value deduction for disabled veterans. Phases in the increase over five years from $24,960 under current law to $50,000 for assessments beginning in 2030. Provides for a five year phase in of a 100% property tax credit for the property tax liability imposed on the homestead of an individual who is or will be at least 65 years of age on or before December 31 of the calendar year immediately preceding the current calendar year in which the individual's property taxes are first due and payable. Specifies, beginning with property taxes first due and payable in 2026, the annual amounts of the phased in property tax credit for such an individual's homestead. Makes conforming changes.

AI Summary

This bill introduces several significant changes to property tax assessment and credits in Indiana, primarily focusing on homestead properties and disabled veterans. Starting in 2026, the bill will freeze the assessed value of homestead properties at their January 1, 2025 valuation, preventing annual value adjustments, and only allowing changes upon sale or transfer. For disabled veterans, the bill gradually increases the property tax deduction from $24,960 to $50,000 over five years, reaching the full amount in 2030. Additionally, the bill establishes a phased-in property tax credit for homeowners who are 65 or older, starting at 20% in 2026 and increasing by 20% each year until reaching a 100% credit in 2030. The legislation aims to provide tax relief for homeowners, particularly seniors and disabled veterans, by reducing their property tax burden through these gradual increases in deductions and credits. The changes will apply to property taxes first due and payable after December 31, 2025, and the bill includes provisions to ensure smooth implementation and compliance with the new tax assessment and credit rules.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

First reading: referred to Committee on Ways and Means (on 01/08/2025)

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