Bill > SB0340

This bill establishes a new law that limits property tax increases for homeowners in Indiana, effective January 1, 2025. The bill caps the year-over-year property tax liability for a homestead (a primary residence) at a maximum of 2% increase. Specifically, the property tax bill cannot exceed either the current year's calculated tax liability or the previous year's tax liability multiplied by 1.02. The law applies to qualified individuals who are eligible for the homestead deduction. There are some important exceptions: if a physical change to the property results in an increased assessment, additional taxes can be levied, and if the ownership of the property changes, the tax limitation does not apply in the first year after the ownership transfer. The county auditor is required to apply these provisions when determining property tax liability. The bill defines key terms like "homestead" and "property tax liability" and ensures that the calculation excludes any interest or penalties. An emergency clause is included, indicating the immediate importance of the legislation.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/340/details