IN HB1337

Property taxes for debt service on bonds issued before January 1, 2026, and lease payments on leases entered into before that date, are excluded from calculations for the supplemental homestead tax credit (capped at $300 or 10% of property tax liability)

Expenditure tax rates for counties and municipalities will expire on December 31, 2029, and every fourth year thereafter, rather than annually as under current law

Local governments must pass ordinances to readopt tax rates for each four-year cycle, regardless of whether rates change

Applies to both county-level local income tax rates (up to 2.9% combined) and municipal income tax rates (up to 1.2% for cities/towns with populations of 3,500+)

Effective dates: January 1, 2026 (retroactive) for supplemental tax credit changes; July 1, 2027 for expenditure tax rate expiration changes