Bill > HB1449

This bill provides a new property tax relief mechanism for homeowners in Indiana by introducing an "assessed value stabilization deduction" which helps limit increases in a property's taxable value. The bill creates a complex formula that compares the year-over-year change in a homestead's net assessed value (the property's value after standard deductions) to the change in the Consumer Price Index (CPI) for the Midwest Region. If the property's assessed value increases faster than the CPI or a minimum of 3%, the deduction will reduce the property's taxable value, effectively capping the potential tax burden. The calculation involves seven steps that determine the difference between the property's gross assessed value (minus existing standard deductions) and a calculated value based on the previous year's net assessed value adjusted by the CPI or 3%. This new provision will take effect on January 1, 2026, and aims to provide homeowners with protection against rapid property value increases that could result in significantly higher property taxes.