Bill > SB0009

This bill modifies the calculation of the Maximum Levy Growth Quotient (MLGQ) for civil taxing units in Indiana, with significant changes taking effect for property taxes first due and payable in calendar years starting after December 31, 2026. Currently, school corporations are excluded from the MLGQ calculation, but the bill changes this to include school corporations beginning in 2027. The new MLGQ calculation will be more complex, involving four different economic indicators: personal consumption expenditures, average annual pay, U.S. nonfarm business labor productivity, and county nonfarm personal income. Each indicator will be weighted differently (20% to 30%) when calculating the final quotient. The bill requires the budget agency to calculate and provide the MLGQ for each county, including a special calculation for taxing units that span multiple counties. Additionally, the budget agency must compute statewide minimum, maximum, median, and average MLGQ values. For the years 2024 and 2025, a modified calculation method will be used that generally results in a lower growth quotient. The bill aims to provide a more nuanced and comprehensive approach to determining property tax levy limits across different jurisdictions in Indiana.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/senate/9/details