SB 315 would extend Indiana’s temporary cap on the “maximum levy growth quotient” used to calculate property tax levy limits for civil taxing units and school corporations. The bill keeps in place the special formula first added by HEA 1499-2023, but extends its application from calendar years 2024-2025 to include 2026 as well. It also declares an emergency, meaning the act would take effect immediately upon passage.
Under current law, the maximum levy growth quotient is based on recent growth in Indiana nonfarm personal income, with a general ceiling of 1.06 for civil taxing units. SB 315 would continue the temporary adjustment that reduces that quotient by applying an 80% factor to the amount above 1.0, then adding 1.0 back in, with a cap of 1.04. A parallel temporary formula would also continue for school corporations’ operations fund levy calculations, again limiting the quotient to 1.04 through 2026.
The bill’s practical effect would be to constrain how much local governments and school corporations can increase property tax levies in the affected years, which may limit revenue growth for those entities and potentially restrain property tax increases for taxpayers. It amends Indiana Code section 6-1.1-18.5-2, which governs the maximum permissible ad valorem property tax levy for civil taxing units and the operations fund levy for school corporations.
Overall sentiment appears neutral to supportive based on the bill’s straightforward extension of an existing policy, though no committee transcripts or recorded votes were provided. Because the bill simply continues a temporary cap already in law, the main policy question is whether to preserve the restraint on levy growth for another year. The likely point of contention is the tradeoff between limiting property tax growth for residents and businesses versus giving local governments and schools more flexibility to keep pace with inflation, assessed value changes, and service needs.
Impact
SB 315 would amend IC 6-1.1-18.5-2 to extend through 2026 the temporary calculation used to determine the maximum levy growth quotient for civil taxing units and school corporations. This affects local property tax levy limits by continuing a reduced growth formula and capping the quotient at 1.04 for the specified years, thereby constraining allowable levy increases under Indiana’s property tax system.
Sentiment
The available record suggests a generally neutral-to-supportive posture, since the bill is a technical extension of an existing temporary cap rather than a new policy direction. No committee testimony or vote history was provided, so there is no evidence of organized opposition or amendment activity in the materials supplied. The emergency clause indicates an intent for immediate implementation, which is consistent with a measure designed to preserve current levy-limit rules without interruption.
Contention
The main policy tension is between taxpayer relief and local fiscal flexibility. Supporters would likely favor continuing the cap to limit property tax levy growth and provide predictability, while critics could argue that extending the cap through 2026 further restricts school corporations and local taxing units from keeping up with rising costs, assessed value changes, and service demands. Because the bill applies broadly to civil taxing units and school operations funds, any contention would likely come from local government and education stakeholders concerned about revenue constraints.