summary
Introduced
01/08/2026
01/08/2026
In Committee
01/08/2026
01/08/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Circuit breaker credits for homesteads. Authorizes the fiscal body of a county, city, or town (municipality) to reduce its homestead property tax cap. Requires the reduced property tax cap to apply only in determining the net property tax revenue of the municipality that adopted it and not to any other taxing unit within the taxing district. Authorizes a municipality that has adopted a reduced homestead property tax cap to adopt any of the following local option taxes, either singly or in combination, the revenue from which must be used as property tax replacement revenue due to the reduced homestead property tax cap: (1) Local option sales tax. (2) Supplemental local income tax. (3) Supplemental innkeeper's tax. (4) Supplemental food and beverage tax. Makes conforming changes and removes obsolete provisions. Makes an appropriation.
AI Summary
This bill allows the fiscal body of a county, city, or town (municipality) to lower the property tax cap for homesteads, which is the maximum percentage of a property's assessed value that can be taxed. This reduced cap would only affect the municipality that adopts it and not other taxing units within the same district. To compensate for any lost property tax revenue resulting from this reduction, municipalities are authorized to implement new local option taxes, including a local sales tax, a supplemental local income tax, a supplemental innkeeper's tax, or a supplemental food and beverage tax. The bill also makes conforming changes to existing laws and removes outdated provisions, and includes an appropriation.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
First reading: referred to Committee on Tax and Fiscal Policy (on 01/08/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://iga.in.gov/legislative/2026/bills/senate/218/details |
| BillText | https://iga.in.gov/pdf-documents/124/2026/senate/bills/SB0218/SB0218.01.INTR.pdf |
| Fiscal Note #1: Introduced | https://iga.in.gov/pdf-documents/124/2026/senate/bills/SB0218/fiscal-notes/SB0218.01.INTR.FN001.pdf |
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