INDIANAPOLIS, Ind. (WOWO) — Indiana farmers are pressing state lawmakers to overhaul how agricultural buildings are assessed for property taxes after updated valuation schedules drove a sharp increase in assessed values, with some farmers reporting that comparable structures are valued differently depending on the county.

The issue took center stage Wednesday before the Indiana Interim Study Committee on Fiscal Policy, where Indiana Farm Bureau representatives urged lawmakers to address inconsistencies in the state’s property valuation system rather than leave individual property owners to challenge their assessments one parcel at a time.

Katrina Hall, the Farm Bureau’s senior director of policy strategy and advocacy, said an analysis commissioned by the organization initially found that assessed values for the agricultural buildings studied had increased by about 44% statewide. After appeals and discussions with local assessors, the estimated increase was revised to 29% — representing approximately $2 billion in additional assessed value for taxes payable in 2027.

More than half of the parcels included in the updated analysis experienced assessed-value increases of at least 15%, Hall told lawmakers.

The figures measure changes in assessed property values, not the amount farmers’ tax bills are expected to rise. Actual property taxes also depend on local tax rates, deductions, credits and statutory limits.

Hall said the findings raised concerns about whether Indiana’s assessment system is being applied consistently across county lines. Some assessors adjusted the state’s cost tables to reflect local conditions, she said, while others appeared to apply them without comparable adjustments. That could leave otherwise similar barns, grain bins and livestock facilities with substantially different assessed values.

“Appeals are like a parcel at a time,” Hall said. “They are not fixing problems with assessing in the tax base.”
The Farm Bureau wants Indiana to consider a nationally recognized valuation system, such as Marshall & Swift, and review depreciation schedules used to calculate the value of agricultural buildings as they age.

Hall said taxpayers sometimes obtain appraisals using that system when challenging assessments, creating a potential mismatch between the valuation methods used by property owners and those used by the state.
The organization also proposed moving agricultural improvements from Indiana’s 3% property tax cap category into the 2% category. Hall said the change could generate an estimated $44 million in savings across agricultural properties.

That proposal would provide tax relief through a change to the applicable tax cap, separate from any changes to the methods used to calculate assessed values.

The debate follows Indiana’s 2025 property tax overhaul, which changed homeowner deductions and credits, business personal property taxation and local government revenue rules. Subsequent analysis by the Indiana Fiscal Policy Institute found that the effects could vary among homeowners, with owners of lower-value homes potentially facing increases while owners of more expensive homes received larger reductions.
State officials acknowledged the concerns raised by farmers but cautioned against assuming that a higher assessed value automatically translates into a higher tax bill.

Tim Rushenberg, general counsel for the Indiana Department of Local Government Finance, said assessed value is only one component of a property tax calculation. Local government budgets, tax levies, deductions, credits and constitutional tax caps all influence the final amount a property owner pays.

“An individual parcel can see a higher bill even when the district rate falls, or a lower bill despite increasing gross assessed value,” Rushenberg said. “There’s a lot of moving parts, so there is no reliable shortcut from gross assessed value to taxpayer impact.”

Rushenberg defended the state’s annual assessment adjustments, commonly known as trending, which are designed to keep property valuations aligned with market evidence between physical reassessments.
He cautioned that making adjustments less frequently could allow inequities to accumulate, potentially resulting in larger changes when properties are eventually reassessed. Proposals to limit assessments based on purchase prices or annual growth rates could also raise constitutional questions if comparable properties end up being treated differently.

State cost tables provide a common starting point for estimating property values, Rushenberg said, but property owners must still be able to challenge assessments with credible evidence.

Barry Wood, director of the department’s assessment division, said Indiana previously updated its cost schedules once every four years. The state is moving toward annual reviews of the schedules or a related adjustment factor in an effort to limit substantial fluctuations.

Rushenberg said the department wants additional information on construction costs, appraisals and other evidence to determine whether particular agricultural building schedules need correction.
Public comments on the readoption of Indiana’s real property assessment rule were scheduled to close October 23.

“We want to look at the data,” Rushenberg said. “We’ve asked for data to see where, maybe in the cost schedule, something isn’t adding up there. But we certainly don’t want to make a general assumption that an entire schedule is is incorrect.”

The committee also examined concerns involving homeowners whose property assessments rise as nearby houses are built or renovated, potentially increasing neighborhood market values even when longtime residents have made no improvements to their own homes.

State Representative Cherrish Pryor, a Democrat from Indianapolis, said the assessment and appeal process can be difficult for residents to navigate, particularly older homeowners who may struggle to understand why their property values have changed.

She called for a system that makes valuations easier to understand and reduces the burden on residents to challenge potential errors.

“We live it, and so it’s easy for us, but it’s not easy for the average person, particularly if you’re an older individual,” Pryor said.

Wood said assessors can account for differences in the types and ages of houses within a neighborhood when applying adjustments.

Lawmakers also considered whether automated valuation models could help identify inconsistencies before property owners receive their assessments or feel compelled to file appeals.

Hamilton County Assessor Kevin Poore said an assessor-led pilot involving automated valuation tools is underway in Hendricks, Clark, Lake, Vanderburgh, LaPorte and Allen counties.

The Department of Local Government Finance recommended starting with an advisory or quality-control pilot, while retaining local assessors’ authority and preserving taxpayers’ rights to receive notice and appeal valuations.

State Senator Fady Qaddoura, a Democrat from Indianapolis, pressed for clear measures of accuracy and analysis of the potential financial effects before any broader implementation.

“Anytime you bring a new model, you have to refine that system to be sure that there are no unintended consequences,” Qaddoura said.

Childcare funding was another major issue before the committee Wednesday, as state officials outlined plans to sustain expanded access to childcare assistance ahead of Indiana’s 2027 budget session.

Adam Alson, director of the Office of Early Childhood and Out-of-School Learning, said Republican Governor Mike Braun intends to continue the expansion of childcare vouchers supported by a one-time $200 million state investment announced in April.

The funding helped provide additional assistance to approximately 14,000 children who had been waiting for vouchers. Alson said the additional vouchers were funded entirely with state money for one fiscal year, and the administration plans to include continued funding in its upcoming budget proposal.

“The additional 14,000 CCDF vouchers are funded solely with state dollars and for one fiscal year,” Alson said. “The governor is committed to continuing this increase in enrollment, and as such, this additional investment and allocation will be reflected in its upcoming budget.”

September figures presented to lawmakers showed 46,579 children enrolled across the federal Child Care and Development Fund program and Indiana’s On My Way Pre-K program. The combined programs had 17,732 children on their waiting lists.

At the same time, Indiana’s regulated childcare capacity had declined approximately 3.3% from a year earlier, leaving about 156,151 available seats statewide.

Alson said the administration is pursuing regulatory changes and looking for additional ways to attract financial support from employers, philanthropic organizations and local governments.

Whitney Coake, a public affairs director with Taft who presented the proposal in her personal capacity, outlined a framework she called “QuadShare.” The model would combine employer contributions, taxpayer funding, state support and philanthropy to finance expanded childcare assistance, 12 weeks of paid parental leave and an early care trust fund.

Coake’s proposal estimated annual operating costs of approximately $1.74 billion, separate from proposed deposits into the trust fund. Potential financing sources included an employer payroll contribution of 0.3% and a 0.15-percentage-point increase in the individual income tax rate. Philanthropic contributions and investment returns were also part of the proposed financing framework, rather than confirmed sources of revenue.

Alson emphasized that childcare funding solutions may need to vary by community, depending on local employers, families and available resources.

“There are places throughout the state that are saying this is important,” Alson said. “How do we figure out how we do it?”

The committee’s discussions leave lawmakers with several interconnected questions heading into the next budget session: how to maintain consistent and constitutionally compliant property valuations, whether additional tax relief is warranted for agricultural buildings, how to prevent assessment errors from burdening homeowners and how to sustain expanded childcare assistance amid continuing demand.