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Bill Summary · HB 1243

Summary of HB 1243 (Indiana, 2026 Session)

Title

Prepayment of assessment installments

What the bill does (purpose and intent)

  • The bill revises the municipal Barrett Law to allow property owners who have deferred assessments (via a waiver) to prepay their assessment in full.
  • It requires each municipal works board to adopt a policy permitting this prepayment and clarifies the timing and conditions under which prepayment can occur.

Key provisions and changes

  • Effective date: July 1, 2026.
  • New policy requirement:
    • Each municipal works board must establish a policy that allows an owner of real property in the municipality, who has filed a waiver to defer installments, to prepay the full assessment.
  • Two methods of full prepayment are authorized: 1) After the expiration of the first year following the filing of the waiver:
    • The owner may pay the entire balance of the assessment and be relieved of the lien on the property.
    • The owner must also pay all interest due at the next interest-paying period.
    • The owner may not prepay the entire balance under this method unless all interest due at the next interest-paying period is paid at the same time. 2) At any time, including within the year the waiver is filed:
    • The owner may pay the entire balance of the assessment and be relieved of the lien on the property.
    • The owner must also pay all interest due at the next interest-paying period.
    • The owner may not prepay the entire balance under this method unless all interest due at the next interest-paying period is paid at the same time.
  • Effect of full prepayment:
    • If the owner fully pays the assessment and the corresponding interest, all interest and liability related to the assessed property cease (i.e., the lien is removed).

Who is affected

  • Primary: Municipal works boards within Indiana municipalities that administer Barrett Law assessments.
  • Property owners with deferred assessments who have filed a waiver to defer installments.

Procedural and timeline aspects

  • Implementation timeline:
    • The bill becomes effective on July 1, 2026.
    • Municipal works boards must adopt or amend policies to conform to the new prepayment framework after the effective date.

Fiscal and administrative impact

  • Local impact:
    • Potential, temporary increase in workload for municipal works boards as they update policies to allow prepayment.
  • State impact:
    • No direct state revenue or expenditure changes anticipated; policy change is localized to municipal boards.
  • The fiscal note indicates minor local impact related to policy updates; no new funding is required at the state level.

Notes

  • The bill preserves the existing provision that allows payment in full after the first year following waiver filing, but adds the option for immediate or year-one prepayment under a board-approved policy.
  • The policy must ensure any prepayment is accompanied by payment of the next interest due at the same time.

Compiled from official sources — confirm details with the bill’s official record.

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