Indiana HB1238 modifies homestead assessment rules, limiting adjustments to post-transfer events.

Indiana HB1238 amends the assessment rules for homesteads, stipulating that the assessed value of real property qualifying as a homestead can only be adjusted upon sale, devise, descent, or conveyance. Adjustments before such events are prohibited unless requested by the property owner. The bill also outlines a methodology for the Department of Local Government Finance to annually adjust assessed values, using a six-year rolling average and specific capitalization rates. Effective July 1, 2026, these provisions aim to ensure more stable and predictable property tax assessments for homesteads.

Indiana HB1238 modifies homestead assessment rules, limiting adjustments to post-transfer events.

Indiana HB1238 amends the assessment rules for homesteads, stipulating that the assessed value of real property qualifying as a homestead can only be adjusted upon sale, devise, descent, or conveyance. Adjustments before such events are prohibited unless requested by the property owner. The bill also outlines a methodology for the Department of Local Government Finance to annually adjust assessed values, using a six-year rolling average and specific capitalization rates. Effective July 1, 2026, these provisions aim to ensure more stable and predictable property tax assessments for homesteads.