Bill > SB0411

This bill addresses short-term rental properties and introduces several key changes to Indiana's property tax and zoning regulations. The bill requires local units of government to amend their zoning ordinances to create specific guidelines for approving or denying special use permits for short-term rental properties. More significantly, it establishes new rules that impact homestead tax deductions for properties used as short-term rentals. If a homestead property is rented as a short-term rental for at least one time in each of two consecutive calendar years, it becomes ineligible for the standard homestead tax deduction. The bill also mandates that non-owner-occupied short-term rental properties be taxed at the same rate as commercial hotels or motels. Additionally, the legislation requires property owners to disclose on their homestead deduction application whether they have rented the property as a short-term rental in the previous two calendar years. These provisions aim to provide clearer regulations for short-term rentals while potentially discouraging their widespread use in residential areas by creating financial disincentives.

Government Affairs

https://iga.in.gov/legislative/2025/bills/senate/411/details