KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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HB1135 • 2026

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Housing Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Representative Earl Harris
Last action
2026-01-05
Official status
Introduced House Bill (H)
Effective date
Not listed

Plain English Breakdown

The official source does not provide specific details about the housing down payment assistance fund's operations or the exact date when these rules will start.

Law to Create Housing Fund and Tax Investors

This law creates a fund to help people buy homes, adds a transfer tax for investors buying houses as investments, and limits the number of houses an investor can own.

What This Bill Does

  • Creates the housing down payment assistance fund to help people pay for their first home.
  • Adds a transfer tax equal to 50% of the fair market value when someone buys a single family house as an investment after a certain date.
  • Establishes a maximum number of houses that an investor can own and charges extra taxes on any additional houses bought beyond this limit.

Who It Names or Affects

  • People who want to buy their first home with help from the fund.
  • Investors buying single family homes as investments.

Terms To Know

Transfer tax
A tax charged when property is transferred or sold, in this case for houses bought by investors.
Fair market value
The price that a willing buyer would pay to a willing seller without any pressure to buy or sell.

Limits and Unknowns

  • The exact date when these rules start is not given.
  • It does not specify how the housing down payment assistance fund will be used in detail.

Bill History

  1. 2026-01-05 House

    Authored by Representative Harris

  2. 2026-01-05 House

    First reading: referred to Committee on Ways and Means

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Investor ownership of single family residences.

Current Bill Text

Read the full stored bill text 
A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Investor ownership of single family residences.

Establishes the housing down payment assistance fund. Establishes a transfer tax equal to 50% of the fair market value of a single family residence for each single family residence acquired by an applicable taxpayer after the applicable date. Establishes a maximum number of single family residences that may be owned by an applicable taxpayer after the applicable date for purposes of calculating an annual excise tax on any excess single family residences.