Bill > HB1250

This bill establishes a new property tax assessment classification for prime farmland in Indiana, effective January 1, 2026. Prime farmland is defined as tillable agricultural land currently in use, with at least 50% of the parcel having a soil productivity factor of 1.0 or higher, excluding land used for renewable energy projects or conservation reserve programs. The bill provides a reduced property tax assessment for such land, starting at 85% of the 2025 assessment rate for the January 1, 2026 assessment date, and subsequently adjusting annually based on the Consumer Price Index for All Urban Consumers. Landowners must maintain the agricultural use of the land for at least 10 years; if they change the land's use before this period, they will be subject to a penalty. The penalty calculates the difference in property taxes that would have been paid without the special assessment, adds interest at 150% of the bank prime loan rate, and must be paid to the county treasurer for distribution among local taxing units. This legislation aims to provide tax relief and incentives for preserving productive agricultural land.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1250/details