Indiana legislation · 2026 Regular Session
Indiana HB1288: Local government finance.
Status: In committee, January 6, 2026
Abolishes the assessment of tangible property after December 31, 2026, and the imposition of property taxes after December 31, 2027. Provides that a political subdivision may not issue any new bonds, notes, or warrants, or enter into any leases or obligations to be paid from property tax revenue, or that include a pledge to levy property taxes if other funds are insufficient. Provides that: (1) no property tax increment financing district or allocation area may be established, amended, or renewed; and (2) no bonds, leases, or other obligations may be issued, entered into, or extended for a property tax increment financing district or allocation area. Provides that a school corporation may impose an annual fee to replace the loss of revenue previously collected by the school corporation from the imposition of an operating referendum tax levy or school safety referendum tax levy. Prescribes procedures for the fixing and reviewing of a political subdivision's budget. Prohibits the imposition of new levies for controlled projects, operating referenda, and school safety referenda. Abolishes the offices of county assessor and township assessor. Extends the sales and use tax application to transactions involving services, except for health care or mental health services (including insurance premiums for policies covering these services) and services provided for charitable tax exempt purposes. Establishes the local revenue sharing fund (fund) into which revenue from the portion of revenue from the extended sales and use tax is to be deposited. Requires the state comptroller to distribute to taxing units the portion of all the state sales and use tax revenue attributable to services from the fund. Continually appropriates money from the fund. Requires the legislative services agency to prepare legislation for introduction in the 2027 regular session of the general assembly to make appropriate required changes in statutes. Makes corresponding changes.
What the bill says
A bill FOR AN ACT to amend the Indiana Code concerning taxation and to make an appropriation.
From the introduced text:
A BILL FOR AN ACT to amend the Indiana Code concerning taxation and to make an appropriation. SECTION 1. IC 3-8-1-23, AS AMENDED BY P.L.167-2015, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 23. This section does not apply to elections in 2027 and thereafter. A candidate for the office of county assessor must satisfy the following: (1) The candidate must have resided in the county for at least one (1) year before the election, as provided in Article 6, Section 4 of the Constitution of the State of Indiana. (2) The candidate must own real property located in the county upon taking office. SECTION 2. IC 3-10-2-13, AS AMENDED BY P.L.278-2019, SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2026]: Sec. 13. The following public officials shall be elected at the general election before their terms of office expire and every four (4) years thereafter: 2026 IN 1288--LS 6962/DI (1) Clerk of the circuit court. (2) County auditor. (3) County recorder. (4) County treasurer. (5) County sheriff. (6) County coroner. (7) County surveyor. (8) County assessor. This subdivision does not apply to elections in 2027 and thereafter. (9) County commissioner. (10) County council member. (11) Township trustee. (12) Township board member. (13) Township assessor (only in a township referred to in …
Sponsors
- Prescott, J.D. (R) · primary sponsor
- Craig Haggard (R, HD-057)
- Jim Lucas (R, HD-069)
- Zach Payne (R, HD-066)
Latest actions
- : Coauthored by Representatives Haggard, Lucas, Payne
- : Authored by Representative Prescott
- : First reading: referred to Committee on Ways and Means
Subjects: AGENCIES; Department of Local Government Finance (DLGF), HEALTH CARE FACILITIES; Mental Health Facilities, ELECTIONS; Public Questions and Referendums, COUNTY GOVERNMENT, TAXES; Tax Increment Financing (TIF), TAXES; Property Taxes, STATE ELECTED OFFICIALS; Comptroller, EDUCATION; Generally
Common questions
- What is HB1288?
- HB1288 is a bill in the Indiana Legislature (2026 Regular Session): Local government finance.
- What does HB1288 do?
- In its own words: A bill FOR AN ACT to amend the Indiana Code concerning taxation and to make an appropriation.
- What is the status of HB1288?
- In committee as of January 6, 2026. Latest action: Coauthored by Representatives Haggard, Lucas, Payne (January 6, 2026).
- Who sponsored HB1288?
- Prescott, J.D. (R), with 3 co-sponsors.
- Where is the official record for HB1288?
- On the Indiana Legislature website: https://iga.in.gov/legislative/2026/bills/house/1288
Source: official Indiana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.