republic-os/legislation/us/states/in/2026/hb-1406.md

---
type: "Bill"
title: "Tax and fiscal matters."
description: "Provides, in a county that uses a property tax statement as the notice of assessment, that the county treasurer must send a property tax statement to all property owners regardless of whether the property has any liability. Requires the county treasurer to indicate on the property tax statement whether a taxpayer's property tax liability for property taxes first due and payable in 2027 is less than the taxpayer's property tax liability for property taxes first due and payable in 2026. Requires the Indiana economic development corporation (IEDC) to report to the budget committee concerning any purchase or sale of land. Amends provisions regarding budget committee review of tax credits in determining the annual aggregate tax credit cap and specifies allocation of the credits. Provides that real property owned by certain Indiana nonprofit hospital systems is not exempt from property taxation under certain circumstances and unmet conditions. Provides that certain transfer fee covenants are limited only to transfers that involve the sale of property and do not include transactions where the property is gifted, donated, or transferred. Provides that personal property owned by certain entities remains subject to minimum valuation limitations. Amends provisions and revises the effective date for the rounding provisions for cash transactions with regard to the penny phaseout for payments to business entities in ESB 243-2026. Amends the percentage increase in a public library's proposed budget that determines whether the public library's proposed budget is subject to binding review by the applicable county, city, or town fiscal body. Allows the Delaware County executive to adopt an ordinance to consolidate the functions of a board, bureau, commission, authority, or any other similar entity authorized to administer funds received from the Delaware County: (1) innkeeper's tax; or (2) food and beverage tax; into a single, consolidated entity as designated in the consolidating ordinance. Adds certain organizations to the list of organizations for which conducted sales are exempt from state gross retail and use tax. Allows the city of Bedford to impose a food and beverage tax. Requires the IEDC to award $35,000,000 to development authorities each fiscal year that may be granted to taxpayers proposing a qualified investment in a qualified redevelopment site pursuant to a development plan. Establishes the small town opportunity initiative. Amends the venture capital investment tax credit (tax credit) to specify: (1) that certain investment policies of funds that qualify as a \"qualified Indiana investment fund\" apply only to investable capital, excluding management fees, legal fees, and other expenses incurred in the operation of the fund; (2) that a taxpayer is not prevented from combining individual tax credits of less than $10,000 for assignment; and (3) qualified business eligibility. Prohibits the IEDC from awarding an applicable tax credit to a taxpayer that is organized under the laws of a country that is a foreign adversary or that is otherwise related under certain circumstances to a country that is a foreign adversary. Requires the office of the secretary of family and social services and division of family resources to require a vendor to offer certain technology solutions to prevent theft of SNAP benefits when issuing a request for proposals. Provides that if a Level 2 certified technology park (park): (1) has reached the limit of deposits for a Level 2 park; (2) maintains its certification; and (3) is located within a qualified military base enhancement area; the park shall become a Level 3 park and may receive an additional annual incremental income tax deposit of up to $250,000 until July 1, 2029. Allows the budget agency to augment the appropriation to the grain buyers and warehouse licensing agency from the grain buyers and warehouse licensing agency license fee fund."
jurisdiction: "us/states/in"
legislature: "Indiana General Assembly"
session: "2026"
identifier: "HB 1406"
citation: "Indiana HB 1406 (2026)"
classification: ["bill"]
subjects: ["COUNTY GOVERNMENT", "LOCAL ELECTED OFFICIALS; Treasurers", "TAXES; Assessments", "Notices", "and Penalties", "TAXES; Property Taxes"]
status: "enacted"
primary_sponsors: ["Jeffrey Thompson", "Scott Baldwin", "Travis Holdman"]
version_count: 4
action_count: 31
vote_count: 4
first_action: "2026-01-08"
last_action: "2026-03-12"
source: "openstates"
source_identifier: "ocd-bill/187fb8a2-e987-40d1-9ffd-097cc3890faf"
source_url: "https://api.iga.in.gov/2026/bills/hb1406"
source_hash: "42e396475e8de744bdb407a3ae6571b975a9e0e976ab9291d7332af5562392c8"
vintage: "2026-07-01"
source_snapshot: "https://data.openstates.org/daily/2026-07-01/public.pgdump"
retrieved_at: "2026-07-06"
confidence: "reported"
tags: ["legislation", "bill", "us-in"]
---

# Indiana HB 1406 (2026) — Tax and fiscal matters.

Provides, in a county that uses a property tax statement as the notice of assessment, that the county treasurer must send a property tax statement to all property owners regardless of whether the property has any liability. Requires the county treasurer to indicate on the property tax statement whether a taxpayer's property tax liability for property taxes first due and payable in 2027 is less than the taxpayer's property tax liability for property taxes first due and payable in 2026. Requires the Indiana economic development corporation (IEDC) to report to the budget committee concerning any purchase or sale of land. Amends provisions regarding budget committee review of tax credits in determining the annual aggregate tax credit cap and specifies allocation of the credits. Provides that real property owned by certain Indiana nonprofit hospital systems is not exempt from property taxation under certain circumstances and unmet conditions. Provides that certain transfer fee covenants are limited only to transfers that involve the sale of property and do not include transactions where the property is gifted, donated, or transferred. Provides that personal property owned by certain entities remains subject to minimum valuation limitations. Amends provisions and revises the effective date for the rounding provisions for cash transactions with regard to the penny phaseout for payments to business entities in ESB 243-2026. Amends the percentage increase in a public library's proposed budget that determines whether the public library's proposed budget is subject to binding review by the applicable county, city, or town fiscal body. Allows the Delaware County executive to adopt an ordinance to consolidate the functions of a board, bureau, commission, authority, or any other similar entity authorized to administer funds received from the Delaware County: (1) innkeeper's tax; or (2) food and beverage tax; into a single, consolidated entity as designated in the consolidating ordinance. Adds certain organizations to the list of organizations for which conducted sales are exempt from state gross retail and use tax. Allows the city of Bedford to impose a food and beverage tax. Requires the IEDC to award $35,000,000 to development authorities each fiscal year that may be granted to taxpayers proposing a qualified investment in a qualified redevelopment site pursuant to a development plan. Establishes the small town opportunity initiative. Amends the venture capital investment tax credit (tax credit) to specify: (1) that certain investment policies of funds that qualify as a "qualified Indiana investment fund" apply only to investable capital, excluding management fees, legal fees, and other expenses incurred in the operation of the fund; (2) that a taxpayer is not prevented from combining individual tax credits of less than $10,000 for assignment; and (3) qualified business eligibility. Prohibits the IEDC from awarding an applicable tax credit to a taxpayer that is organized under the laws of a country that is a foreign adversary or that is otherwise related under certain circumstances to a country that is a foreign adversary. Requires the office of the secretary of family and social services and division of family resources to require a vendor to offer certain technology solutions to prevent theft of SNAP benefits when issuing a request for proposals. Provides that if a Level 2 certified technology park (park): (1) has reached the limit of deposits for a Level 2 park; (2) maintains its certification; and (3) is located within a qualified military base enhancement area; the park shall become a Level 3 park and may receive an additional annual incremental income tax deposit of up to $250,000 until July 1, 2029. Allows the budget agency to augment the appropriation to the grain buyers and warehouse licensing agency from the grain buyers and warehouse licensing agency license fee fund.

## Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. **Enrolled House Bill (H)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2026/house/bills/HB1406/HB1406.04.ENRS.pdf)
2. **House Bill (H)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2026/house/bills/HB1406/HB1406.03.COMS.pdf)
3. **House Bill (S)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2026/house/bills/HB1406/HB1406.02.COMH.pdf)
4. **Introduced House Bill (H)** (committee substitute) — [source](https://iga.in.gov/pdf-documents/124/2026/house/bills/HB1406/HB1406.01.INTR.pdf)

## Votes

- HB 1406 - Holdman — **46–1** (pass) · upper
- HB 1406 - Holdman - 3rd Reading — **48–0** (pass) · upper
- HB 1406 - Thompson - 3rd Reading — **92–0** (pass) · lower
- HB 1406 - Thompson — **65–31** (pass) · lower

## Sponsors

- Jeffrey Thompson — primary (person)
- Scott Baldwin — primary (person)
- Travis Holdman — primary (person)

## Timeline

The legislative action history — every referral, reading, and vote.

- **2026-01-08** Authored by Representative Thompson
- **2026-01-08** First reading: referred to Committee on Ways and Means `reading-1, referral-committee`
- **2026-01-27** Committee report: amend do pass, adopted `committee-passage`
- **2026-01-29** Second reading: ordered engrossed `reading-2`
- **2026-02-02** Senate sponsor: Senator Holdman
- **2026-02-02** Third reading: passed; Roll Call 186: yeas 92, nays 0 `passage, reading-3, reading-3`
- **2026-02-03** Referred to the Senate `referral`
- **2026-02-05** First reading: referred to Committee on Tax and Fiscal Policy `reading-1, referral-committee`
- **2026-02-17** Committee report: amend do pass, adopted `committee-passage`
- **2026-02-17** Senator Baldwin added as second sponsor
- **2026-02-23** Second reading: ordered engrossed `reading-2`
- **2026-02-24** Third reading: passed; Roll Call 261: yeas 48, nays 0 `passage, reading-3, reading-3`
- **2026-02-25** House advisors appointed: Jordan, Prescott, Pryor
- **2026-02-25** House conferees appointed: Thompson, Porter
- **2026-02-25** Senate conferees appointed: Holdman, Hunley
- **2026-02-25** House dissented from Senate amendments
- **2026-02-25** Returned to the House with amendments `receipt`
- **2026-02-25** Motion to dissent filed `filing`
- **2026-02-25** Senate advisors appointed: Baldwin, Niezgodski
- **2026-03-12** Signed by the Governor `executive-signature`
- **2026-03-05** Signed by the President Pro Tempore `passage`
- **2026-02-27** CCR # 1 filed in the House `filing`
- **2026-02-27** CCR # 1 filed in the Senate `filing`
- **2026-02-27** Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 332: yeas 46, nays 1
- **2026-02-27** Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 426: yeas 65, nays 31
- **2026-03-02** Signed by the President of the Senate `passage`
- **2026-03-03** Signed by the Speaker `passage`
- **2026-02-27** Representative Porter removed as conferee
- **2026-02-27** Representative Snow added as conferee
- **2026-02-27** CCR # 1 filed in the House `filing`
- **2026-03-12** Public Law 162 `became-law`

## Source

OpenStates / OpenCivicData bulk snapshot [2026-07-01](https://data.openstates.org/daily/2026-07-01/public.pgdump); origin `ocd-bill/187fb8a2-e987-40d1-9ffd-097cc3890faf`. Confidence: reported (aggregated from official Indiana legislature records).