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Read. Follow. Verify.Indiana Senate Bill 278 Modifies Tax Increment Financing Procedures and Mandates Taxpayer Income Data Disclosure
Last action · January 8, 2026: First reading: referred to Committee on Tax and Fiscal PolicySponsor: Scott Baldwin
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What This Bill Proposed
Senate Bill 278 establishes new neutralization procedures, allows county assessors and boards to require taxpayer income data within 60 days for property assessment appeals, and requires adopting bodies to report local income tax debt details annually by November 10. The measure also imposes new written lien agreements and disclosure requirements for nonowner-occupied residential properties in districts subject to the 2% tax cap.
Property owners in districts face mandatory disclosure rules and binding liens for outstanding bond liabilities, while local redevelopment commissions must meet strict July 15 reporting deadlines or forfeit 5% of excess assessed values to taxing units.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Property Taxpayers
Property taxpayers appealing assessments may be required to submit sensitive income data within 60 days under threat of assessment determinations.
Redevelopment Commissions
Redevelopment commissions must meet an annual July 15 deadline for base assessed value neutralization documentation to prevent revenue loss.
County Auditors
County auditors are responsible for allocating excess assessed values and ensuring liens are factored into residential real estate sales disclosures.
Key Facts
- Assessors or county boards may request taxpayer income data during property assessment appeals to determine assessed values under the income capitalization approach, requiring a response within 60 days.
- Adopting bodies must annually report total debt outstanding, annual debt due, and estimated payoff years for local income tax-backed debt to the Department of Local Government Finance (DLGF) by November 10.
- Redevelopment commissions must submit base assessed value neutralization documentation to the DLGF by July 15 each year, or face a penalty where 5% of excess assessed value is allocated to respective taxing units.
- Original owners of nonowner-occupied residential properties subject to the 2% tax cap in a TIF area must enter a written agreement to pay property taxes for outstanding TIF bonds until retired, creating a legal lien on the property.
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- If a TIF property is later sold as a homestead and becomes subject to the 1% tax cap, the new owner remains legally responsible for fulfilling the lien and property tax liability terms.
- Original TIF districts with multiple overlapping districts remain active solely to satisfy subsequent TIF bonds, provided the redevelopment commission secures DLGF approval and notifies the state board of accounts.
Frequently Asked Questions
Are new buyers responsible for existing TIF liens on residential properties?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in Senate committee.
Procedural history
2 actions- Jan 8, 2026SenateIntroducedFirst reading: referred to Committee on Tax and Fiscal Policy
- Jan 8, 2026SenateAuthored by Senator Baldwin
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Strict Enforcement Deadlines on Local Commissions
The introduction of a concrete July 15 deadline backed by a 5% assessed value forfeiture penalty marks a stricter state enforcement mechanism over local redevelopment commissions.
Connected Entities
Sources
iga.in.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 80)
- Controversy45Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz25Current news / social attention level
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