SB 290 Indiana Senate · 2025 Regular Session

Local taxes in certain municipalities.

Summary

Requires the department of local government finance to increase the maximum permissible property tax levy for certain qualifying municipalities for property taxes first due and payable in 2025 to include all debt service levies of the qualifying municipality for property taxes first due and payable in 2025. Specifies that the adjustment is a one time and permanent increase. Changes the local income tax trust account threshold percentage of a county that contains a qualifying municipality, which is used for purposes of determining whether the county shall receive a supplemental distribution. Modifies the certified share allocation determination for a qualifying municipality. Prohibits the use of funds from the state general fund to make up certain local income tax related shortfalls.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

Senate Passage

Feb 2025

House Passage

Governor

Introduced Jan 13, 2025 Last action Mar 3, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Senate Bill (S) → Senate Bill (H) · 3 edits

MINOR

This bill introduces amendments to SB 290, updating the digest to reflect new provisions that prohibit using state general funds to cover local income tax shortfalls. The bill also adds a new sponsor, Randolph Lonnie M, and updates the legislative history to show the bill was amended and reported favorably on February 11, 2025. These changes clarify funding restrictions and expand the bill's procedural history.

Scope change

The bill's scope remains focused on local taxes in certain municipalities, but it now explicitly prohibits state general fund usage to cover local income tax shortfalls, adding a new funding restriction.

FISCAL

Added prohibition on using state general fund money to make up local income tax shortfalls for qualifying municipalities.

TIMELINE

Added new sponsor Randolph Lonnie M and recorded amendment and favorable report on February 11, 2025.

TECHNICAL

Updated bill digest reference from 'Introduced Bill' to 'SB 290' with updated timestamp and version number.

Floor votes · Senate Feb 17, 2025

How they voted

47–0

Passed · 3 other

Total votes 50

Feb 17, 2025

D Democratic10

9 Yea 1

90% Yea

R Republican40

38 Yea 2

95% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 17, 2025

Upper · Passed

Third reading: passed; Roll Call 141: yeas 47, nays 0

upper

Feb 11, 2025

Upper · Passed

Committee report: amend do pass, adopted

upper

3 primary · 2 co-sponsors