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 6775 NOTE PREPARED: Jan 5, 2021
BILL NUMBER: HB 1574 BILL AMENDED:
SUBJECT: Property Tax Deferrals for Qualified Seniors.
FIRST AUTHOR: Rep. Pressel BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill establishes the property tax payment deferral program (program). It
provides that a qualified individual participating in the program may defer the payment of part of the property
taxes that would otherwise be due on a homestead. The bill provides that property taxes deferred under the
program are due after the occurrence of a deferral termination event. It defines a deferral termination event.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Under this bill, the Department of Local Government Finance (DLGF)
must prescribe the deferral application form. The DLGF should be able to implement the bill’s requirements
with no additional appropriations, assuming near customary agency staffing and resource levels.
Explanation of State Revenues:
Explanation of Local Expenditures: County auditors, treasurers, and recorders will all have additional
workload under this bill.
Explanation of Local Revenues: The bill will allow a homeowner who is at least 65 years of age to defer
a part of their property tax bill each year, subject to limitations. To qualify, the homestead assessed value
may not exceed $200,000 and the homeowner’s adjusted gross income may not exceed $30,000 ($40,000
jointly). The portion of the tax bill that qualified taxpayers may defer is the portion of the bill that exceeds
the base year amount (the tax due for the assessment date that immediately precedes the date of application
for deferral).
HB 1574 1
Overall, at least initially, revenues for all civil taxing units and school corporations that serve the affected
homesteads will decrease under this bill. If deferral repayments are greater than deferrals in a future year,
then revenues would increase in those years. Deferrals could be as much as $6 M to $10 M for each year’s
taxes deferred, beginning in CY 2022. This amount will build in each year that deferrals continue. So the
deferral amount for CY 2023 could be as much as $12 M to $20 M, the CY 2024 deferral could be as much
as $18 M to $30 M, and so on. However, the actual amount deferred could be somewhat less than these
estimates because not all qualified homeowners would apply for the deferral.
The example homeowner below has a $1,000 tax bill in the base year that rises by $50 per year. The table
illustrates the annual deferral and total deferral amounts over five years.
Annual
Deferred Total
Tax Bill Tax Paid Amount Deferrals
Year 1 (Base) $ 1,000 $ 1,000 $0 $0
Year 2 1,050 1,000 50 50
Year 3 1,100 1,000 100 150
Year 4 1,150 1,000 150 300
Year 5 1,200 1,000 200 500
State Agencies Affected: Department of Local Government Finance.
Local Agencies Affected: County auditors; County treasurers; County recorders.
Information Sources: LSA Property Tax Database.
Fiscal Analyst: Bob Sigalow, 317-232-9859
HB 1574 2