HB 1192 / Chamber Neutral
The House Ways and Means Committee heard testimony last week on House Bill 1192, authored by Rep. Kendell Culp (R-Rensselaer). This is an Indiana Farm Bureau priority bill that proposes adjustments to Indiana’s farmland assessment formula, including the exclusion of the two highest market value years in the six-year rolling average – effectively making it a four-year average – and an increase in the capitalization rate. These changes would lower farmland assessed values, providing significant property tax relief to agribusinesses. The bill has been held for later consideration.
Testimony on the bill was neutral, focusing on its broader implications for Indiana’s property tax system. The need for comprehensive evaluation was emphasized, recommending that this and related bills be combined to ensure the net impact to all taxpayers is fully understood. Without such consideration, reforms may result in unintended tax shifts that disproportionately burden other property types.
This measure is projected to reduce farmland assessed value by $9.2 billion for taxes payable in 2027, leading to an estimated $33.2 million reduction in local government revenues – primarily due to tax cap losses. This reduction in assessed value will shift the tax burden to other property types, particularly businesses, which will face higher tax rates. Commercial and industrial property owners are likely to experience a notable increase in their share of the property tax burden.
While certainty and stability for agribusinesses is important, reforms must not disproportionately impact Indiana’s broader business community. We will continue engaging stakeholders to advocate for a balanced approach that supports Indiana’s long-term competitiveness and economic growth.
