LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6719 NOTE PREPARED: Feb 4, 2020
BILL NUMBER: SB 385 BILL AMENDED: Jan 30, 2020
SUBJECT: Assessment of Business Personal Property Taxes.
FIRST AUTHOR: Sen. Freeman BILL STATUS: As Passed Senate
FIRST SPONSOR: Rep. VanNatter
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides that the business personal property exemption from taxation
is based on the assessed value (AV) instead of the acquisition cost.
Effective Date: January 1, 2021.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures: Local assessors may realize some administrative savings as a result
of this bill. Taxpayers who claim the exemption must file one return form within the county, including only
identifying information and checking a box claiming the exemption. The rest of the return may be left blank.
Local assessors will not have to process the numeric portion of these returns. Also, in a case where an
affected taxpayer is currently filing multiple returns in the county, the total number of filings will be reduced
to one. This bill will result in additional taxpayers filing the return in this manner.
[Personal property owners may still need to complete the calculations on each of their returns in order to
determine if their combined countywide AV is less than $40,000.]
Explanation of Local Revenues: This bill will result in additional personal property tax exemptions which
will increase tax rates and shift some taxes to other taxpayers. In addition, the higher tax rates will result in
a local revenue reduction due to higher tax cap losses. Cumulative fund and school operating and safety
referendum funds will see less revenue. Also, TIF revenues will be increase because of the higher tax rates.
SB 385 1
This bill will result in the exemption of approximately 52,000 additional business property tax returns
beginning with taxes payable in CY 2022. The newly exempted personal property taxpayers will save about
$25.7 M in property taxes beginning in CY 2022, and the tax bills for other property will be increased by
about $14.5 M. Overall, annual local revenues will decrease by about $11.3 M statewide. The following table
summarizes the estimated CY 2022 revenue change by taxing unit type. [Estimated net local revenue changes
by county appear in the table at the end of this fiscal note.]
CY 2022 Estimated Revenue Impact
(In $ Millions)
Estimated Revenue Change
Cumulative /
Referendum TIF Gross Total
Unit Type Tax Cap Fund Levy Revenue Net Revenue
Counties -2.0 -0.1 0.0 -2.1
Townships -0.3 0.0 0.0 -0.3
Cities and Towns -4.3 -0.1 0.0 -4.4
School Corporations -3.8 -0.6 0.0 -4.4
Libraries -0.5 0.0 0.0 -0.5
Special Units -0.9 -0.1 0.0 -1.0
TIF -1.5 0.0 3.1 1.6
Total -13.5 -0.9 3.1 -11.3
Total Without TIF -11.9 -0.9 0.0 -12.9
Totals may differ due to rounding.
The estimated change in net tax by property type is shown in the following table.
Estimated Change in CY 2022
Net Property Taxes (Millions)
Property Type Net Tax Change
Homesteads $4.8
Farmland 0.8
Other Residential 1.1
Apartments 0.2
Agriculture 0.6
Other Real 3.9
Personal Property -22.7
Total $-11.3
Additional Information: Under current law, beginning with taxes payable in CY 2021, taxpayers who have
less than $40,000 of depreciable asset acquisition cost in the county are exempt from personal property tax.
For taxes payable in CY 2017 through CY 2020, taxpayers who had less than $20,000 of depreciable asset
acquisition cost in the county were exempt from personal property tax.
SB 385 2
State Agencies Affected:
Local Agencies Affected: Local assessors; Local civil taxing units and school corporations.
Information Sources: LSA Property Tax Database.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
SB 385 3
 2022 Estimated Revenue Impact
Estimated Revenue Change
Cumulative /
Referendum TIF Gross Total
County Tax Cap Fund Levy Revenue Net Revenue
Adams -93,000 2,000 6,000 -84,000
Allen -624,000 -44,000 76,000 -592,000
Bartholomew -105,000 -9,000 43,000 -71,000
Benton -10,000 0 0 -10,000
Blackford -50,000 -1,000 4,000 -47,000
Boone -38,000 -7,000 34,000 -11,000
Brown 0 -4,000 0 -4,000
Carroll -13,000 -1,000 3,000 -10,000
Cass -93,000 -2,000 10,000 -85,000
Clark -312,000 1,000 95,000 -216,000
Clay -20,000 -1,000 5,000 -16,000
Clinton -91,000 -2,000 24,000 -68,000
Crawford -37,000 0 1,000 -36,000
Daviess -59,000 -6,000 14,000 -50,000
Dearborn -36,000 -4,000 5,000 -35,000
Decatur -52,000 1,000 70,000 19,000
DeKalb -24,000 -3,000 13,000 -14,000
Delaware -442,000 -3,000 91,000 -353,000
Dubois -61,000 -8,000 10,000 -59,000
Elkhart -478,000 -96,000 94,000 -480,000
Fayette -92,000 0 4,000 -88,000
Floyd -75,000 -1,000 24,000 -52,000
Fountain -17,000 -1,000 4,000 -14,000
Franklin -15,000 -1,000 2,000 -14,000
Fulton -29,000 0 1,000 -28,000
Gibson -61,000 -1,000 35,000 -27,000
Grant -214,000 -2,000 74,000 -142,000
Greene -73,000 -8,000 3,000 -78,000
Hamilton -279,000 -73,000 112,000 -241,000
Hancock -76,000 -4,000 21,000 -59,000
Harrison -3,000 -1,000 0 -4,000
Hendricks -203,000 -48,000 61,000 -190,000
Henry -128,000 1,000 15,000 -112,000
Howard -268,000 2,000 22,000 -244,000
Huntington -102,000 0 16,000 -87,000
Jackson -31,000 -2,000 18,000 -15,000
Jasper 0 -4,000 7,000 3,000
Jay -52,000 -1,000 7,000 -47,000
Jefferson -101,000 0 5,000 -96,000
Jennings -59,000 -1,000 21,000 -39,000
Johnson -192,000 -6,000 41,000 -157,000
Knox -177,000 0 55,000 -122,000
Kosciusko -46,000 -6,000 22,000 -30,000
LaGrange -10,000 -40,000 17,000 -34,000
Lake -809,000 -90,000 164,000 -735,000
LaPorte -318,000 -4,000 51,000 -271,000
Lawrence -115,000 0 17,000 -98,000
Madison -1,013,000 -39,000 293,000 -760,000
SB 385 4
 2022 Estimated Revenue Impact
Estimated Revenue Change
Cumulative /
Referendum TIF Gross Total
County Tax Cap Fund Levy Revenue Net Revenue
Marion -2,016,000 -272,000 359,000 -1,929,000
Marshall -98,000 -2,000 18,000 -83,000
Martin -9,000 -1,000 2,000 -8,000
Miami -53,000 0 4,000 -50,000
Monroe -62,000 -18,000 44,000 -36,000
Montgomery -78,000 -2,000 12,000 -69,000
Morgan -2,000 -8,000 13,000 3,000
Newton -25,000 0 0 -25,000
Noble -46,000 -1,000 19,000 -28,000
Ohio 0 -5,000 0 -5,000
Orange -14,000 0 21,000 7,000
Owen -13,000 0 1,000 -12,000
Parke -5,000 -1,000 2,000 -4,000
Perry -53,000 -1,000 14,000 -40,000
Pike -36,000 0 1,000 -36,000
Porter -201,000 -27,000 50,000 -179,000
Posey -25,000 0 4,000 -21,000
Pulaski -1,000 -2,000 0 -2,000
Putnam -67,000 0 31,000 -37,000
Randolph -58,000 -1,000 11,000 -48,000
Ripley -21,000 0 2,000 -20,000
Rush -43,000 1,000 4,000 -38,000
St. Joseph -905,000 -35,000 301,000 -639,000
Scott -62,000 -1,000 19,000 -45,000
Shelby -60,000 -3,000 40,000 -23,000
Spencer -7,000 -2,000 1,000 -8,000
Starke -35,000 -3,000 1,000 -37,000
Steuben -12,000 -14,000 2,000 -25,000
Sullivan -40,000 -1,000 1,000 -40,000
Switzerland -4,000 0 0 -4,000
Tippecanoe -216,000 -5,000 118,000 -103,000
Tipton -29,000 -1,000 6,000 -23,000
Union -43,000 0 0 -43,000
Vanderburgh -723,000 4,000 131,000 -587,000
Vermillion -24,000 0 1,000 -23,000
Vigo -583,000 -10,000 74,000 -519,000
Wabash -92,000 -1,000 18,000 -75,000
Warren -3,000 0 0 -3,000
Warrick -26,000 -4,000 9,000 -22,000
Washington -82,000 0 9,000 -73,000
Wayne -336,000 -2,000 30,000 -308,000
Wells -4,000 -5,000 4,000 -4,000
White -16,000 -1,000 4,000 -13,000
Whitley -35,000 -6,000 27,000 -14,000
Total -13,463,000 -944,000 3,120,000 -11,287,000
SB 385 5


Statutes affected:
1. Introduced Senate Bill (S): 6-1.1-3-7.2
2. Senate Bill (S): 6-1.1-3-7.2
3. Engrossed Senate Bill (S): 6-1.1-3-7.2