Bill > SB0391

This bill addresses how political subdivisions (such as local government entities) can set their property tax levies and budgets, introducing new restrictions and procedures for tax rate increases. Starting January 1, 2026, the bill mandates that a political subdivision's property tax levy cannot exceed its previous year's levy, regardless of any increase in the area's assessed property value. However, the fiscal body of a political subdivision can override this limitation by following a specific process: holding a dedicated public hearing, adopting an ordinance that explains the reasons for the tax increase, specifies the dollar amount and percentage of the increase, and meets certain timing requirements. The ordinance must be adopted at least 15 days before the public budget hearing. If an ordinance is successfully passed, the political subdivision can increase its tax levy by the amount specified in the ordinance, subject to other existing legal limits. The bill also requires that political subdivisions with increased assessed property values should see corresponding decreases in their tax rates. These provisions aim to provide more transparency and public input into local government budget and tax decisions, while also creating a default mechanism to prevent automatic tax increases.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/391/details