FOR IMMEDIATE
RELEASE Tuesday, February, 19,
2013
Tax relief for farmers passes
both houses
STATEHOUSE
— Senate Bill (SB) 319, sponsored by State
Representative Don Lehe (R-Brookston) and cosponsored by State Representative Ron Bacon (R-Chandler), passed the
Indiana House of Representatives on Monday with a 97-0 vote. SB 319 is the first
piece of legislation to pass both houses in the 2013 legislative
session.
SB 319 addresses
the assessment of farmland for property tax purposes. The Department of Local
Government Finance had produced a list of changes last year that equals an
immediate 20 percent increase in property taxes on farmland. Taxes on farmland
the last few years have increased dramatically as the newly enacted controls
have held other classes of property static or reduced. By fast tracking the
bill, local assessors can implement the new statute before spring documents are
mailed out to property owners.
“This bill has been
fast tracked because of its important to many Hoosiers,” said Rep. Bacon.
“A recent study showed that agricultural
land has experienced the largest property tax increase of any type of land since
2007. SB 319 prevents farmers from having to pay a significant increase in
taxes, providing some much needed relief following the recent drought last
summer.”
In SB 319, the
current soil productivity factors, used for the March 2011 assessment of
agricultural land value, would remain in place for property taxes payable in
2014. The new soil productivity factors could not be used until 2015. The bill
also establishes an interim study committee to study agriculture property tax
issues.
“We are really
appreciative of those individuals who got this bill to the Senate in a hurry and
to the House for now fast tracking it,” said Indiana Farm Bureau tax and local
government specialist Katrina
Hall. “This is an issue our members have
been facing, and we appreciate the efforts to delay this for one more year to
access it more generally.”
SB 319 now heads to the governor’s desk to be signed
into law.
