Shown verbatim: the complete text as captured from the official PDF posted by the Indiana General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
Second Regular Session of the 124th General Assembly (2026)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
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provision adopted), the text of the new provision will appear in this style type. Also, the
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a new provision to the Indiana Code or the Indiana Constitution.
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between statutes enacted by the 2025 Regular Session of the General Assembly.
SENATE ENROLLED ACT No. 163
AN ACT to amend the Indiana Code concerning taxation.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 6-1.1-15-1.2, AS AMENDED BY P.L.9-2024,
SECTION 168, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 1.2. (a) A county or township
official who receives a written notice under section 1.1 of this chapter
shall schedule, at a time during business hours that is convenient to the
taxpayer, a preliminary informal meeting with the taxpayer in order to
resolve the appeal. If the taxpayer raises a claim regarding a matter that
is in the discretion of the county auditor, the informal meeting must
include the county auditor. At the preliminary informal meeting, in
order to facilitate understanding and the resolution of disputed issues:
(1) a county or township official;
(2) the county auditor, if the matter is in the discretion of the
county auditor; and
(3) the taxpayer;
shall exchange the information that each party is relying on at the time
of the preliminary informal meeting to support the party's respective
position on each disputed issue concerning the assessment or
deduction. If additional information is obtained by the county or
township official, the county auditor, or the taxpayer after the
preliminary informal meeting and before the hearing held by the county
board, the party obtaining the information shall provide the information
to the other party. If the county or township official, the county auditor,
or the taxpayer obtains additional information and provides the
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information to the other party for the first time at the hearing held by
the county board, the county board, unless waived by the receiving
party, shall continue the hearing until a future hearing date of the
county board so that the receiving party has an opportunity to review
all the information that the offering party is relying on to support the
offering party's positions on the disputed issues concerning the
assessment or deduction.
(b) The official shall report on a form prescribed by the department
of local government finance the results of the informal meeting. If the
taxpayer and the official agree on the resolution of all issues in the
appeal, the report shall state the agreed resolution of the matter and be
signed by the official and the taxpayer. If an informal meeting is not
held, or the informal meeting is unsuccessful, the official shall report
those facts on the form. The official shall forward the report on the
informal meeting to the county board.
(c) If the county board receives a report on the informal meeting
indicating an agreed resolution of the matter, the county board shall
vote to accept or deny the agreed resolution. If the county board accepts
the agreed resolution, the county board shall issue a notification of final
assessment determination adopting the agreed resolution and vacating
the hearing if scheduled.
(d) The county board, upon receipt of a written notice under section
1.1 of this chapter, shall hold a hearing on the appeal not later than one
hundred eighty (180) days after the filing date of the written notice.
The county board shall, by mail, give at least thirty (30) days notice of
the date, time, and place fixed for the hearing to the taxpayer, the
county or township official with whom the taxpayer filed the written
notice, and the county auditor. If the county board has notice that the
taxpayer is represented by a third person, any hearing notice shall be
mailed to the representative.
(e) If good cause is shown, the county board shall grant a request for
continuance filed in writing at least ten (10) days before the hearing,
and reschedule the hearing under subsection (d).
(f) A taxpayer may withdraw an appeal by filing a written request
at least ten (10) days before the hearing. The county board shall issue
a notification of final assessment determination indicating the
withdrawal and no change in the assessment. A withdrawal waives a
taxpayer's right to appeal to the Indiana board.
(g) The county board shall determine an appeal without a hearing if
requested by the taxpayer in writing at least twenty (20) days before the
hearing.
(h) If a taxpayer appeals the assessment of tangible property under
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section 1.1 of this chapter, the taxpayer is not required to have an
appraisal of the property in order to initiate the appeal or prosecute the
appeal. If the taxpayer presents an appraisal to the county board that:
(1) is prepared by a certified appraiser in compliance with the
Uniform Standards of Professional Appraisal Practice to
determine the market value in use;
(2) is addressed to the property owner or the assessor's office;
(3) is commissioned for the purpose of the assessment appeal; and
(4) has an effective date that is the same date as the date of the
assessment that is the subject of the appeal;
the value of the property contained in the appraisal is presumed to be
correct. If the county board disagrees with the taxpayer's appraisal, the
county board may seek review of the appraisal by a third party
independent certified appraiser or obtain an independent appraisal
report conducted by a certified appraiser in compliance with the
Uniform Standards of Professional Appraisal Practice. If the county
board's appraisal differs from the taxpayer's appraisal, the county board
shall weigh the evidence and determine the true tax value of the
property based on the totality of the probative evidence before the
county board. The county board's determination of the property's true
tax value may be higher or lower than the assessment but may not be
lower than the lowest appraisal presented to or obtained by the county
board, or higher than the highest appraisal presented to or obtained by
the county board. After the assignment of value, the parties shall retain
their rights to appeal the assessment or assessments to the Indiana
board, which must hear the appeal de novo.
(i) At a hearing under subsection (d), the taxpayer shall have the
opportunity to present testimony and evidence regarding the matters on
appeal. If the matters on appeal are in the discretion of the county
auditor, the county auditor or the county auditor's representative shall
attend the hearing. A county or township official, or the county auditor
or the county auditor's representative, shall have an opportunity to
present testimony and evidence regarding the matters on appeal. The
county board may adjourn and continue the hearing to a later date in
order to make a physical inspection or consider the evidence presented.
However, the county board or assessing official shall not enter a
property to conduct a physical inspection without first receiving
the permission of the taxpayer to enter the property to make the
physical inspection. Notwithstanding any other provision to the
contrary, the county board shall not issue an order (including an
order issued under 52 IAC 4-8-3) authorizing entry onto a
taxpayer's property without the taxpayer's permission.
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(j) The county board shall determine the assessment by motion and
majority vote. Except as provided in subsection (m), a county board
may, based on the evidence before it, increase an assessment. The
county board shall issue a written decision. Written notice of the
decision shall be given to the township official, county official, county
auditor, and the taxpayer.
(k) If more than one hundred eighty (180) days have passed since
the date the notice of appeal was filed, and the county board has not
issued a determination, a taxpayer may initiate any appeal with the
Indiana board of tax review under section 3 of this chapter.
(l) The county assessor may assess a penalty of fifty dollars ($50)
against the taxpayer if the taxpayer or representative fails to appear at
a hearing under subsection (d) and, under subsection (e), the taxpayer's
request for continuance is denied, or the taxpayer's request for
continuance, request for the board to take action without a hearing, or
withdrawal is not timely filed. A taxpayer may appeal the assessment
of the penalty to the Indiana board or directly to the tax court. The
penalty may not be added as an amount owed on the property tax
statement under IC 6-1.1-22 or IC 6-1.1-22.5.
(m) The determination of an appealed assessed value of tangible
property by a county or township official resulting from an informal
meeting under subsection (a), or by a county board resulting from an
appeal hearing under subsection (d), may be less than or equal to the
tangible property's original appealed assessed value at issue, but may
not exceed the original appealed assessed value at issue. However, an
increase in assessed value that is attributable to substantial renovation,
new improvements, zoning change, or use change is excluded from the
limitation under this subsection.
SECTION 2. IC 6-1.1-15-17.3, AS AMENDED BY P.L.178-2021,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 17.3. (a) As used in this section, "tax official"
means:
(1) a township assessor;
(2) a county assessor;
(3) a county auditor;
(4) a county treasurer;
(5) a member of a county board; or
(6) any employee, contract employee, or independent contractor
of an individual described in subdivisions (1) through (5).
(b) Except as provided in subsection (c), a tax official in a county
may not serve as a tax representative of any taxpayer with respect to
property subject to property taxes in the county before the county board
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of that county or the Indiana board. The prohibition under this
subsection applies regardless of whether or not the individual receives
any compensation for the representation or assistance.
(c) Subsection (b) does not:
(1) prohibit a contract employee or independent contractor of a
tax official from serving as a tax representative before the county
board or Indiana board for a taxpayer with respect to property
subject to property taxes in the county unless the contract
employee or independent contractor personally and substantially
participated in the assessment of the property; or
(2) prohibit an individual from appearing before the county board
or Indiana board regarding property owned by the individual.
(d) An individual who is a former county assessor, former township
assessor, former employee or contract employee of a county assessor
or township assessor, or an independent contractor formerly employed
by a county assessor or township assessor may not serve as a tax
representative for or otherwise assist another person in an assessment
appeal before a county board or the Indiana board if:
(1) the appeal involves the assessment of property located in:
(A) the county in which the individual was the county assessor
or was an employee, contract employee, or independent
contractor of the county assessor; or
(B) the township in which the individual was the township
assessor or was an employee, contract employee, or
independent contractor of the township assessor; and
(2) while the individual was the county assessor or township
assessor, was employed by or a contract employee of the county
assessor or the township assessor, or was an independent
contractor for the county assessor or the township assessor, the
individual personally and substantially participated in the
assessment of the property.
The prohibition under this subsection applies regardless of whether the
individual receives any compensation for the representation or
assistance. However, this subsection does not prohibit an individual
from appearing before the Indiana board or county board regarding
property owned by the individual.
(e) The department shall prepare and make available to taxpayers a
power of attorney form that allows the owner of property that is the
subject of an appeal under this article to appoint a relative (as defined
in IC 2-2.2-1-17) for specific assessment years to represent the owner
concerning the appeal before the county board or the department of
local government finance. A relative who is appointed by the owner of
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the property under this subsection:
(1) may represent the owner before the county board or the
department of local government finance but not the Indiana board
concerning the appeal; and
(2) is not required to be certified as a tax representative in order
to represent the owner concerning the appeal.
(f) Notwithstanding any other law, but subject to subsections (b) and
(d) and IC 6-1.1-31.7-3.5, an individual may serve as a tax
representative of any taxpayer concerning property subject to property
taxes in the county:
(1) before the county board of that county, if:
(A) the individual is certified as a level two assessor-appraiser
under IC 6-1.1-35.5; and
(B) the taxpayer authorizes has provided written
authorization, which may be by electronic means and may
not be effective for more than one (1) year, to the individual
to serve as the taxpayer's tax representative on a form that: is:
(i) is prepared by the department of local government
finance; and
(ii) contains an attestation that the taxpayer has
provided written authorization for the individual
designated to serve as the taxpayer's tax representative;
and
(ii) (iii) is submitted with the taxpayer's notice to initiate an
appeal; or
(2) before the county board of that county or the Indiana board, if:
(A) the individual is certified as a level three
assessor-appraiser under IC 6-1.1-35.5; and
(B) the taxpayer has provided written authorization, which
may be by electronic means and may not be effective for
more than one (1) year, to the individual to serve as the
taxpayer's tax representative on a form that:
(i) is prepared by the department of local government
finance;
(ii) contains an attestation that the taxpayer has
provided written authorization for the individual
designated to serve as the taxpayer's tax representative;
and
(iii) is submitted with the taxpayer's notice to initiate an
appeal.
The taxpayer must also have a signed agreement with the
individual designated to serve as the taxpayer's tax representative
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which must be attested to by the taxpayer as required under
subdivisions (1) and (2).
SECTION 3. IC 6-1.1-49-4, AS ADDED BY P.L.95-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 4. (a) Subject to subsection (h), a county fiscal
body may adopt an ordinance to provide a credit against a qualified
individual's property tax liability as set forth in this chapter.
(b) An ordinance adopted under this section may designate a
neighborhood enhancement district. A neighborhood enhancement
district may include:
(1) all of the territory of the county; or
(2) one (1) or more specific geographic territories within the
county;
as an area in which qualified individuals may apply for the credit.
(c) Subject to subsection (h), an ordinance adopted under this
section must:
(1) include a boundary description of the neighborhood
enhancement district or districts to which the ordinance applies;
(2) specify the income thresholds for a qualified individual under
section 3(5)(A) and 3(5)(B) of this chapter, if any; and
(3) specify the percentage of increase on a qualified individual's
property tax liability in a particular year compared to the prior
year that is to be used in determining the amount of the county
option circuit breaker tax credit calculated under section 7(2)(B)
of this chapter. The percentage must be at least two percent (2%)
but not more than five percent (5%).
The boundary description required under subdivision (1) must be
sufficient to identify the parcel or parcels to which the credit may be
applied, including identification by taxing district, a parcel list, or a
legal description.
(d) If a proposal is presented to the county fiscal body to adopt an
ordinance under this section, the county fiscal body shall hear the
proposal at a public meeting of the county fiscal body and may then
vote to adopt the ordinance at the next meeting of the county fiscal
body.
(e) The county fiscal body may rescind an ordinance adopted under
this section.
(f) An ordinance adopted under this section is effective January 1 of
the year following the year in which the ordinance is adopted.
(g) An ordinance adopted under this section must specify that the
credit does not apply for property taxes first due and payable after
December 31, 2027. December 31, 2028.
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(h) A county fiscal body shall prescribe the same income thresholds,
credit amounts, and any other requirements related to eligibility for
each neighborhood enhancement district designated in the county.
SECTION 4. IC 6-1.1-49-11, AS ADDED BY P.L.95-2023,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 11. This chapter expires January 1, 2028. 2029.
SECTION 5. IC 6-3.1-35-7, AS AMENDED BY P.L.194-2023,
SECTION 24, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 7. (a) An eligible applicant who wishes to obtain
the state tax credit provided by this chapter for a qualified project must
submit an application to the authority after June 30, 2023, and before
January 1, 2028, 2033, in the manner prescribed by the authority.
(b) An application submitted under subsection (a) must include:
(1) the name and address of the qualified project;
(2) the name and address of the owner of the qualified project;
and
(3) any other information required by the authority.
(c) Subject to section 8 of this chapter, the authority may approve a
tax credit application if:
(1) the applicant is an eligible applicant;
(2) the project identified in the application is a qualified project;
and
(3) the tax credit application meets any other requirements for
receipt of state tax credits established by the authority.
(d) If the authority approves a tax credit application for a qualified
project, for each taxable year in the tax credit period the authority may
approve a maximum amount of state tax credits. The maximum
aggregate amount of state tax credits awarded by the authority for the
state tax credit period of a qualified project is an amount that is the
product of:
(1) a percentage determined by the authority, which must be less
than or equal to one hundred percent (100%); multiplied by
(2) the anticipated aggregate federal tax credits over the credit
period as defined by Section 42(f) of the Internal Revenue Code
and specified in a letter issued by the authority for the qualified
project under Section 42(m) of the Internal Revenue Code (annual
amount multiplied by ten (10) years).
(e) If the authority approves a tax credit application for a qualified
project, the authority shall issue an eligibility statement to the eligible
applicant. The eligibility statement must specify at least the following:
(1) A unique identification code for the eligibility statement,
determined by the authority.
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(2) The name of the qualified project.
(3) For each taxable year in the state tax credit period of the
qualified project, the maximum amount of state tax credit that the
authority is awarding to the eligible applicant for the qualified
project.
(f) The authority shall transmit a copy of each eligibility statement
issued under subsection (e) to the department.
SECTION 6. IC 6-3.1-35-8, AS ADDED BY P.L.137-2022,
SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 8. (a) For each state fiscal year beginning after
June 30, 2023, and before July 1, 2028, 2033, the aggregate amount of
state tax credits awarded by the authority under this chapter may not
exceed thirty million dollars ($30,000,000). For purposes of calculating
the aggregate state tax credit limit for a state fiscal year, the amounts
awarded by the authority are considered to be awarded in the year the
award is made to the state tax credit recipient by the authority,
notwithstanding the fact that the awarded state tax credit is to be
claimed over the state tax credit period.
(b) To the extent that the tax credit applications requesting state tax
credits exceed the amount of available state tax credits in a year, or the
authority reasonably anticipates that the requests will exceed the state
fiscal year limitation established in subsection (a), the authority may
allocate the state tax credits in a manner that furthers the mission and
purpose of the authority and otherwise promotes the establishment of
qualified projects.
SECTION 7. IC 6-3.1-35-12, AS ADDED BY P.L.137-2022,
SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]: Sec. 12. This chapter expires July 1, 2028. 2033.
SECTION 8. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "automated valuation system" means a centralized
system of automated valuation models and algorithms that may be
applied to homestead and residential property valuation.
(b) As used in this SECTION, "homestead" refers to a
homestead that qualifies for a standard deduction under
IC 6-1.1-12-37.
(c) As used in this SECTION, "residential property" has the
meaning set forth in IC 6-1.1-20.6-4.
(d) The department of local government finance shall prepare
a report regarding the creation of an automated valuation system
for local assessors to use in the state for the assessment of
homestead and residential property values. The report must
include the following information:
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(1) A description of how automated valuation systems work.
(2) A review of existing literature on the use of automated
valuation systems in the assessment of property.
(3) A review of how automated valuation systems are used in
other states.
(4) Any other topics the department of local government
finance considers relevant.
(e) The department of local government finance shall present
the report prepared under subsection (d) to the interim study
committee on fiscal policy on or before November 1, 2026.
(f) This SECTION expires July 1, 2027.
SECTION 9. [EFFECTIVE UPON PASSAGE] (a) The department
of local government finance shall prepare a report regarding
county and electronic Internet payment systems with which
taxpayers may make property tax payments. The report must
contain the following information:
(1) The number of counties that allow monthly payments and
if the payments are made by an electronic funds transfer.
(2) The cost to the county to allow monthly payments by an
electronic funds transfer.
(3) Whether the county charges the user a fee.
(4) The percentage of taxpayers that pay property taxes on a
monthly basis.
(5) How the county confirms that the property taxes are paid
timely.
(b) The department of local government finance shall present
the report prepared under subsection (a) to the interim study
committee on fiscal policy on or before November 1, 2026.
(c) This SECTION expires July 1, 2027.
SECTION 10. [EFFECTIVE UPON PASSAGE] (a) The
department of local government finance shall prepare a report for
the interim study committee on fiscal policy that identifies
alternatives to:
(1) the annual adjustment or trending process; and
(2) the use of cost tables;
in property assessment under current law.
(b) The department of local government finance shall present
the report prepared under subsection (a) to the interim study
committee on fiscal policy on or before November 1, 2026.
(c) This SECTION expires July 1, 2027.
SECTION 11. An emergency is declared for this act.
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President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date: Time:
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