The Indiana Legislative Council has approved interim study committee topics for the summer/fall 2026 study cycle. Among the assigned topics: the Fiscal Policy Committee is directed to review the process of determining property values for tax purposes — effectively studying the property tax assessment system itself. This sets up potential reform legislation for the 2027 session.
SB 1 in 2025 was the headline property tax legislation. It was big, sprawling, and politically controversial. The interim study committee work this summer will likely shape what 2027 looks like — whether SB 1 gets refined, extended, or partially walked back, and whether structural assessment-system changes are on the table.
This post is the field guide to what the committee is examining, who's pushing what, and which proposals are most likely to advance.
What an interim study committee actually does
Indiana's General Assembly operates on short legislative sessions — usually January through April. The interim period (May through December) is when committees do longer-form policy work that doesn't fit into the rushed regular session. Interim committees:
- Hold public hearings
- Hear from agency officials, industry representatives, citizen groups
- Receive expert testimony
- Issue recommendations and draft legislation for the next session
- Sometimes formally approve specific bills for introduction
Not every recommendation becomes law, but the interim work is where the substantive policy gets sketched out. By the time bills are filed in January 2027, the interim work has already framed what's politically possible.
What the Fiscal Policy Committee will study
The committee's general remit on property tax assessment includes:
1. The assessment methodology itself
How Indiana counties calculate AV. Specific questions on the table:
- Should the "market value-in-use" standard be modified or replaced?
- Should the cost approach be the default for residential, or should sales-based methods dominate?
- How should uniformity be measured and enforced across counties?
- Should the state assume more direct authority over assessment practices, reducing county-by-county variance?
2. Township assessor structure (Marion and a few others)
Marion County is one of a small number of Indiana counties that operates township-level assessment. The committee may review:
- Whether township assessor offices should be consolidated into county offices (long-running Marion-specific debate)
- Whether township assessors should be subject to uniform standards and supervision
- Whether to eliminate township-level assessment entirely in favor of county-level
This is a politically charged topic. Township assessor offices employ many people and have local political constituencies; consolidation has been proposed in past sessions and not advanced.
3. The trending vs. cyclical reassessment cadence
Indiana uses a hybrid of annual trending and 4-year cyclical reassessment. Alternatives:
- More frequent cyclical (every 2 or 3 years)
- Annual full reassessment (resource-intensive)
- Less frequent (5–10 years), with more aggressive trending in between
4. SB 1 implementation issues
Specific 2026 implementation issues are likely to come up:
- The 30% floor elimination for personal property — manufacturers report higher-than-expected assessments
- Cap-loss under SB 1's expanded deductions — some districts seeing larger cap-loss than projected
- Replacement LIT uptake — what the data shows on county imposition and revenue
- $300 homestead credit mechanics — administrative complexity at the county auditor level
5. The agricultural assessment system
The committee may revisit:
- The farmland base rate formula (SB 1 adjusted it for two years; the question is what happens after)
- The soil productivity index structure
- Influence factor application across counties
6. Personal property reporting
The $2M exemption raised for 2026 simplified reporting for small businesses but introduced complexity for the threshold-bracket. The committee may consider:
- Higher exemption levels
- Simplified reporting forms
- Different treatment for industrial vs. commercial personal property
- Specific data center / hyperscaler treatment (see our data center assessment post)
Who's lobbying for what
Several distinct stakeholder groups are mobilizing for the interim work:
Indiana Association of County Commissioners
Generally favors:
- More state funding to compensate for cap-loss
- Expanded local revenue authority (more LIT, etc.)
- Less restrictive levy freeze going forward
Indiana Chamber of Commerce
Generally favors:
- Standardization of assessment methodology across counties
- Continued personal property exemption expansion
- Simpler appeal processes for commercial taxpayers
Indiana Farm Bureau
Generally favors:
- Continued favorable use-value assessment for agricultural land
- Lower base rates
- Reform of soil PI methodology where it produces unjustified outcomes
Indiana State Teachers Association
Generally favors:
- Larger referendum windows
- Expanded levy authority for schools
- Restoration of operating levy growth
Citizens for taxpayer relief / individual taxpayer groups
Generally favor:
- Lower assessment caps
- Simpler bills
- More transparent rate-setting
County assessors and PTABOAs
Generally favor:
- More resources for assessment offices
- Standardized statewide methodology
- Better data systems
The committee will hear all of these and (probably) recommend a mix of small-to-medium changes that don't satisfy any stakeholder fully but advance the ball on several fronts.
What's most likely to advance in 2027
Based on the political and policy landscape:
Highly likely
- SB 1 implementation cleanup — technical corrections, clarifications of ambiguous provisions, fixes for unintended consequences
- Personal property reform — possibly raising the exemption higher (to $5M or $10M for small business simplification), specific data center provisions
- Continued farmland adjustments — likely extending the SB 1 farmland base rate adjustment
Moderate likelihood
- Township assessor consolidation — proposed but historically blocked; may advance for Marion only
- Cap-loss state assumption — state taking on more of the cap-loss burden for hardest-hit districts (politically expensive)
- Referendum reform — easier or harder, depending on which faction wins
Lower likelihood
- Fundamental assessment methodology change — market value-in-use replacement is politically expensive
- Statewide LIT cap reduction — would require unwinding recently-granted authority
- Agricultural assessment overhaul — too politically sensitive
Wild cards
- Reform driven by an external event — a high-profile assessment scandal or court decision could change the agenda
- Court rulings — pending litigation on specific assessment practices could force legislative response
- Federal policy interaction — federal tax law changes (e.g., changes to state and local tax deductibility) could prompt Indiana response
Timeline for the work
| Month | Activity |
|---|---|
| May–June 2026 | Committee formed, leadership selected, work plan adopted |
| July–September 2026 | Public hearings, expert testimony |
| October–November 2026 | Draft recommendations |
| December 2026 | Final report to Legislative Council |
| January 2027 | 2027 legislative session begins; bills introduced based on interim work |
| April 2027 | Session ends; bills passed take effect |
What to do
- Follow committee meetings — most are open to the public and livestreamed through the Indiana General Assembly site
- Submit written testimony — committees accept written comments throughout the interim period
- Engage your representatives — interim committee work is the most influence-able phase of Indiana legislation
- Plan for SB 1 + interim outcomes — assume some 2027 changes to property tax law; don't make decisions assuming the current law is permanent
- Track specific topics relevant to you — if you're an ag landowner, watch farmland provisions; if you're a hyperscaler operator, watch data center / personal property; if you're a homestead owner, watch deductions and caps
Related reading
- Indiana SB 1 reform: what changed for 2026
- The hidden cost of property tax relief: SB 1 LIT replacement
- Indiana data center assessments 2026: LEAP, AWS, and the hyperscaler question
- Indiana business personal property exemption $2M (2026)
- Indiana 2027 cyclical reassessment: county schedule and prep
- Indiana property tax transparency portal guide 2026
- Indiana property tax appeal guide 2026