INDIANAPOLIS | A temporary property tax cut for Hoosier farmers is the first measure to win approval by both chambers of the Indiana General Assembly this year.
The House on Monday voted 97-0 to send Senate Bill 319 to Republican Gov. Mike Pence for his signature or veto. The Senate voted 48-0 for the proposal Jan. 29.
Local governments statewide will lose $57 million due to the change.
The legislation requires property assessors to use 2011 soil productivity factors to calculate the value of farmland for property tax purposes. The Department of Local Government Finance in 2012 released new soil productivity factors that would have raised taxes for most farmers.
All farmland has an assessed base rate of $1,630 per acre. That rate is adjusted based on soil productivity and other factors.
This legislation delays use of the new soil productivity factors until at least 2015. The proposal was fast-tracked through the Legislature to beat the March 1 assessment date for farm properties.
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