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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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SB238 • 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.

Taxes
Passed Legislature

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

Sponsor
Senator Linda Rogers
Last action
2026-01-20
Official status
Introduced Senate Bill (S)
Effective date
Not listed

Plain English Breakdown

The official source material does not provide detailed specifics regarding the exact changes to tax rates, population requirements, or other numerical values. Therefore, some statements remain speculative without further details.

Changes to Property and Local Income Taxes

This bill modifies existing tax laws by adjusting property tax exemptions, reinstating appeal rights for excess taxes, changing local income tax rates and thresholds, and altering the effective dates of certain tax changes.

What This Bill Does

  • Adjusts the threshold for businesses to qualify for a personal property tax exemption.
  • Reinstates the ability of taxpayers to challenge excessive tax levies that were previously removed.
  • Changes the local income tax rates that cities can set and adjusts population requirements for towns to adopt their own local income taxes.
  • Removes the requirement for counties and municipalities to renew their local income tax rates annually.
  • Delays the implementation date of certain local income tax changes from 2028 to 2029.

Who It Names or Affects

  • Taxpayers who pay property taxes in Indiana.
  • Businesses that own personal property and may qualify for tax exemptions.
  • Local governments, including cities and towns, setting local income tax rates.
  • Counties and municipalities responsible for renewing their local income tax rates.

Terms To Know

local income tax (LIT)
A type of tax that a city or town can collect from its residents to fund local services.
property tax
A tax on real estate and personal property based on the value of the assets owned by individuals or businesses.

Limits and Unknowns

  • The bill does not specify how much money will be saved or gained from these changes.
  • It is unclear what impact this legislation will have on local government budgets.
  • Some details about specific tax rates and thresholds are not provided in the summary text.

Bill History

  1. 2026-01-20 Senate

    Senator Doriot added as second author

  2. 2026-01-08 Senate

    Authored by Senator Rogers

  3. 2026-01-08 Senate

    First reading: referred to Committee on Tax and Fiscal Policy

Official Summary Text

A BILL FOR AN ACT to amend the Indiana Code concerning taxation.
Property and local income taxes.

Current Bill Text

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

Property and local income taxes.

Amends provisions added in SEA 1 in the 2025 session that require the department of local government finance to neutralize the effect of certain property tax provisions enacted in that bill. Amends the threshold for the business personal property tax exemption enacted in SEA 1 in the 2025 session. Reinstates excess tax levy appeal provisions that were repealed in SEA 1 in the 2025 session. Amends the various local income tax (LIT) rates that may be adopted under provisions added in SEA 1 in the 2025 session. Amends the population thresholds used to determine if a city or town is eligible to adopt a municipal LIT. Repeals provisions that require counties and municipalities to readopt their LIT rate each year. Moves the effective date for the local income tax changes enacted in SEA 1 in the 2025 session from 2028 to 2029. Makes corresponding changes to move the expiration date regarding a county with a single voting bloc enacted in HEA 1142 in the 2025 session.