Bill > SB0007

This bill modifies the method for calculating the base rate for agricultural land assessment in Indiana, specifically changing the capitalization rate used when preliminary base rates fluctuate significantly. Under the current law, when the preliminary base rate would be at least 10% higher or lower than the previous year's rate, an 8% capitalization rate is used. The bill changes this to a 9% capitalization rate for increases and maintains the existing 6% rate for decreases. The bill also adjusts the methodology for determining the base rate by using a six-year rolling average instead of a four-year average, eliminating the year with the highest market value in use when calculating the average. These changes aim to create a more stable and accurate method for assessing agricultural land values, with the new provisions set to take effect on January 1, 2026, and apply to assessment dates after that date. The bill ensures that agricultural improvements will be assessed differently from residential, commercial, and industrial properties, using factors specific to agricultural land and its unique characteristics.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/7/details