Introduced Version




Citations Affected: Articles 10 and 13 of the Indiana Constitution.

Synopsis: Elimination of property tax. Allows the general assembly to eliminate the property tax and establish a formula to limit the debt of political subdivisions if property is not assessed for property tax purposes. This proposed amendment has not been previously agreed to by a general assembly.

Effective: This proposed amendment must be agreed to by two consecutive general assemblies and ratified by a majority of the state's voters voting on the question to be effective.


    January 4, 2005, read first time and referred to Committee on Judiciary.


First Regular Session 114th General Assembly (2005)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2004 Regular General Assembly.


    A JOINT RESOLUTION proposing an amendment to Articles 10 and 13 of the Indiana Constitution concerning taxation.

Be it resolved by the General Assembly of the State of Indiana:

SOURCE: ; (05)HJ9210.1. -->     SECTION 1. The following amendment to the Constitution of the State of Indiana is proposed and agreed to by this, the One Hundred Fourteenth General Assembly of the State of Indiana, and is referred to the next General Assembly for reconsideration and agreement.
SOURCE: CON 10; (05)HJ9210.2. -->     SECTION 2. ARTICLE 10, SECTION 1 OF THE CONSTITUTION OF THE STATE OF INDIANA IS AMENDED TO READ AS FOLLOWS: Section 1. (a) The General Assembly may provide, by law, for the levy and collection of a tax on property.
     (b) If a property tax is authorized, the General Assembly shall provide, by law, for a uniform and equal rate of property assessment and taxation and shall prescribe regulations to secure a just valuation for taxation of all property, both real and personal. However, the General Assembly may exempt from property taxation any property in

any of the following classes:
        (1) Property being used for municipal, educational, literary, scientific, religious, or charitable purposes.
        (2) Tangible personal property other than property being held as an investment.
        (3) Intangible personal property.
        (4) Tangible real property, including curtilage, used as a principal place of residence by an:
            (A) owner of the property;
            (B) individual who is buying the tangible real property under a contract; or
            (C) individual who has a beneficial interest in the owner of the tangible real property.
(b) In addition, the General Assembly may exempt any motor vehicles, mobile homes, airplanes, boats, trailers, or similar property, provided that an excise tax in lieu of the property tax is substituted therefor.

SOURCE: CON 13; (05)HJ9210.3. -->     SECTION 3. ARTICLE 13, SECTION 1 OF THE CONSTITUTION OF THE STATE OF INDIANA IS AMENDED TO READ AS FOLLOWS: Section 1. (a) No political or municipal corporation in this State shall ever become indebted, in any manner or for any purpose to an amount, in the aggregate, exceeding two per centum on the value of the taxable property within such corporation, to be ascertained by the last assessment for State and county taxes, previous to the incurring of such indebtedness; and all bonds or obligations, in excess of such amount, given by such corporations, shall be void. Provided, That However, in time of war, foreign invasion, or other great public calamity, on petition of a majority of the property owners in number and value, within the limits of such corporation, the public authorities, in their discretion, may incur obligations necessary for the public protection and defense to such amount as may be requested in such petition.
     (b) If the General Assembly does not authorize the imposition of a property tax, the General Assembly shall, by law, establish a limitation on the debt of a political or municipal corporation that is equivalent to the limitation imposed under subsection (a).