SB 9 revises Indiana’s property tax levy growth framework by changing how the maximum levy growth quotient (MLGQ) is calculated. For property taxes first due and payable in 2027 and later, the bill replaces the current statewide-style calculation with a county-based formula that is then applied to each civil taxing unit within the county. The new formula uses a weighted blend of Indiana personal consumption expenditures, Indiana average annual pay, U.S. labor productivity, and county nonfarm personal income, and it directs the budget agency to provide county-level MLGQs and statewide summary statistics.
The bill also changes the definition of “civil taxing unit” so that, beginning in 2027, school corporations are included in that term for purposes of the chapter. It preserves separate treatment for school corporation operations fund levy calculations, but ties those calculations to the revised growth quotient structure. The bill further updates how the levy limit is applied to units spanning more than one county, requiring an average of county MLGQs for those entities. In addition, it keeps existing rules allowing certain levy-limit exceptions for debt repayment and Lake County loan repayment obligations, while making conforming changes to the levy cap provisions.
Impact
SB 9 would amend IC 6-1.1-18.5, the chapter governing maximum permissible ad valorem property tax levies, and would materially alter how annual levy growth limits are computed for local governments and school corporations. Beginning with property taxes first due and payable in 2027, county-level MLGQs would replace the current approach, and the Budget Agency would have new duties to calculate, distribute, and report those quotients. The bill would also expand the statutory definition of civil taxing unit to include school corporations for future levy-growth calculations, affecting school operations fund levy limits and local property tax administration. The act declares an emergency, making it effective upon passage, though the main levy-calculation changes are delayed until 2027.
Sentiment
Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the available context suggests a technical, policy-driven measure rather than a highly partisan or publicly debated one. The bill appears designed to update levy-growth formulas and align them with county-level economic measures, which may be viewed as a modernization of property tax administration. No vote history or transcript indicates formal support or opposition in the supplied record.
Contention
The main policy issue is the shift from the existing levy growth quotient methodology to a county-based formula that incorporates multiple economic indicators and applies to each civil taxing unit within a county. This could affect how much local governments and school corporations may raise through property taxes, so likely points of concern include predictability, fairness across counties, and the effect on taxing capacity for school corporations and multi-county units. Another possible area of contention is the inclusion of school corporations in the definition of civil taxing unit beginning in 2027, because that changes how school levy limits are framed even though the bill preserves a separate operations-fund calculation. No specific opposing or supporting stakeholders are identified in the provided discussion materials.