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Despite shortness of the session, legislature takes action on foreign ownership of farmland and farmland tax formula

Apr 25, 2024, 13:15 PM by Kathleen M. Dutro, INFB Marketing Team

 

Although the Indiana General Assembly typically acts on fewer bills during a short session, some of the bills it does consider can have important ramifications for farmers.

That’s the case for House Enrolled Act 1183 and House Enrolled Act 1120, passed during the recent 2024 session:

  • HEA 1183 bans the sale of farmland to the United States’ foreign adversaries, including China, Cuba, Iran, North Korea, Russia and Venezuela. This was a major priority for Indiana Farm Bureau this year.
  • HEA 1120 added the farmland tax formula to the list of topics to be studied by the State and Local Tax Review Task Force as it prepares for the 2025 session.

“INFB members were instrumental in these significant legislative accomplishments,” said Andy Tauer, INFB executive director of public policy.

Besides banning the sale of farmland to certain countries, HEA 1183 bars these adversarial countries or their representatives from renting agricultural land as well as mineral, riparian and water rights, and it also prohibits purchases and leases of land within a 10-mile radius of a military installation. That provision applies to any countries designated “threats to critical infrastructure.” The bill, which was authored by Rep. Kendell Culp and sponsored by Sen. Jean Leising, passed both houses easily, with a 90-1 vote in the House and a 50-0 vote in the Senate.

As for the farmland tax formula, INFB had hoped to see a change in the formula this session.

“There was a 17% increase in farmland taxes in 2023, and there will be a 27% increase for 2024,” said Katrina Hall, senior director of policy strategy and advocacy for INFB. “Farmers cannot sustain those attacks on their bottom line.”

In the end, no relief was granted, but the State and Local Tax Review Task Force will consider the issue heading into the 2025 budget session. INFB has also established its own tax task force, which has already begun meeting.

“That gives everyone more time to study options and get the solution right next year,” Tauer said.

 

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