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 6552 NOTE PREPARED: Dec 13, 2020
BILL NUMBER: HB 1091 BILL AMENDED:
SUBJECT: Exemption for Liquid Petroleum Gas Storage Tanks.
FIRST AUTHOR: Rep. Cherry BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides that above ground and underground liquid petroleum (LP)
storage tanks are exempt from personal property taxation.
Effective Date: January 1, 2022.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: The exemption of LP tanks assessed as personal property will reduce
assessed value and increase tax rates. The higher tax rates will shift taxes from the tanks’ owners to other
property and will also result in a revenue loss because of the tax caps. The potential tax shifts and revenue
loss is not currently available.
LP tanks may be owned by the user or they may be leased. LP tanks that are a permanent part of real property
or are owned by the owner of the real property are assessed as real property. Leased LP tanks may be
assessed to the owner as personal property.
LP tanks come in a variety of sizes and have residential, commercial, and industrial uses. While the actual
number of LP tanks owned in Indiana is not known, there is some information available regarding residential
use. According to the Census Bureau, an estimated 184,700 occupied dwellings use bottled, tank, or LP gas
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as their home heating fuel. County assessor data includes only 1,360 pressurized tanks that are assessed as
real property. This bill could potentially exempt a large number of LP tanks.
State Agencies Affected:
Local Agencies Affected: Local civil taxing units and school corporations.
Information Sources: LSA Property tax database; Table DP04 - 2019 Selected housing characteristics,
Census.gov.
Fiscal Analyst: Bob Sigalow, 317-232-9859.
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