Indiana 2022 Regular Session

Indiana House Bill HB1225 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1225
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-12-9.
7	7	Synopsis: Eligibility for senior property tax deduction. Increases the
8	8	maximum assessed value of the real property from $200,000 to
9	9	$300,000 to be eligible for the senior property tax deduction. Provides
10	10	that the assessor shall provide a report to the county auditor describing
11	11	any physical improvements to the property.
12	12	Effective: July 1, 2022.
13	13	Slager
14	14	January 6, 2022, read first time and referred to Committee on Ways and Means.
15	15	2022 IN 1225—LS 7041/DI 134 Introduced
16	16	Second Regular Session of the 122nd General Assembly (2022)
17	17	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
18	18	Constitution) is being amended, the text of the existing provision will appear in this style type,
19	19	additions will appear in this style type, and deletions will appear in this style type.
20	20	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
21	21	provision adopted), the text of the new provision will appear in this style type. Also, the
22	22	word NEW will appear in that style type in the introductory clause of each SECTION that adds
23	23	a new provision to the Indiana Code or the Indiana Constitution.
24	24	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
25	25	between statutes enacted by the 2021 Regular Session of the General Assembly.
26	26	HOUSE BILL No. 1225
27	27	A BILL FOR AN ACT to amend the Indiana Code concerning
28	28	taxation.
29	29	Be it enacted by the General Assembly of the State of Indiana:
30	30	1 SECTION 1. IC 6-1.1-12-9, AS AMENDED BY P.L.159-2020,
31	31	2 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32	32	3 JULY 1, 2022]: Sec. 9. (a) An individual may obtain a deduction from
33	33	4 the assessed value of the individual's real property, or mobile home or
34	34	5 manufactured home which is not assessed as real property, if:
35	35	6 (1) the individual is at least sixty-five (65) years of age on or
36	36	7 before December 31 of the calendar year preceding the year in
37	37	8 which the deduction is claimed;
38	38	9 (2) for assessment dates before January 1, 2020, the combined
39	39	10 adjusted gross income (as defined in Section 62 of the Internal
40	40	11 Revenue Code) of:
41	41	12 (A) the individual and the individual's spouse; or
42	42	13 (B) the individual and all other individuals with whom:
43	43	14 (i) the individual shares ownership; or
44	44	15 (ii) the individual is purchasing the property under a
45	45	16 contract;
46	46	17 as joint tenants or tenants in common;
47	47	2022 IN 1225—LS 7041/DI 134 2
48	48	1 for the calendar year preceding the year in which the deduction is
49	49	2 claimed did not exceed twenty-five thousand dollars ($25,000);
50	50	3 (3) for assessment dates after December 31, 2019:
51	51	4 (A) the individual had, in the case of an individual who filed
52	52	5 a single return, adjusted gross income (as defined in Section
53	53	6 62 of the Internal Revenue Code) not exceeding thirty
54	54	7 thousand dollars ($30,000);
55	55	8 (B) the individual had, in the case of an individual who filed
56	56	9 a joint income tax return with the individual's spouse,
57	57	10 combined adjusted gross income (as defined in Section 62 of
58	58	11 the Internal Revenue Code) not exceeding forty thousand
59	59	12 dollars ($40,000); or
60	60	13 (C) the combined adjusted gross income (as defined in Section
61	61	14 62 of the Internal Revenue Code) of the individual and all
62	62	15 other individuals with whom:
63	63	16 (i) the individual shares ownership; or
64	64	17 (ii) the individual is purchasing the property under a
65	65	18 contract;
66	66	19 as joint tenants or tenants in common did not exceed forty
67	67	20 thousand dollars ($40,000);
68	68	21 for the calendar year preceding by two (2) years the calendar year
69	69	22 in which the property taxes are first due and payable;
70	70	23 (4) the individual has owned the real property, mobile home, or
71	71	24 manufactured home for at least one (1) year before claiming the
72	72	25 deduction; or the individual has been buying the real property,
73	73	26 mobile home, or manufactured home under a contract that
74	74	27 provides that the individual is to pay the property taxes on the real
75	75	28 property, mobile home, or manufactured home for at least one (1)
76	76	29 year before claiming the deduction, and the contract or a
77	77	30 memorandum of the contract is recorded in the county recorder's
78	78	31 office;
79	79	32 (5) for assessment dates:
80	80	33 (A) before January 1, 2020, the individual and any individuals
81	81	34 covered by subdivision (2)(B) reside on the real property,
82	82	35 mobile home, or manufactured home; or
83	83	36 (B) after December 31, 2019, the individual and any
84	84	37 individuals covered by subdivision (3)(C) reside on the real
85	85	38 property, mobile home, or manufactured home;
86	86	39 (6) except as provided in subsection (i), the assessed value of the
87	87	40 real property, mobile home, or manufactured home does not
88	88	41 exceed two three hundred thousand dollars ($200,000).
89	89	42 ($300,000).
90	90	2022 IN 1225—LS 7041/DI 134 3
91	91	1 (7) the individual receives no other property tax deduction for the
92	92	2 year in which the deduction is claimed, except the deductions
93	93	3 provided by sections 1, 37, (for assessment dates after February
94	94	4 28, 2008) 37.5, and 38 of this chapter; and
95	95	5 (8) the person:
96	96	6 (A) owns the real property, mobile home, or manufactured
97	97	7 home; or
98	98	8 (B) is buying the real property, mobile home, or manufactured
99	99	9 home under contract;
100	100	10 on the date the statement required by section 10.1 of this chapter
101	101	11 is filed.
102	102	12 (b) Except as provided in subsection (h), in the case of real property,
103	103	13 an individual's deduction under this section equals the lesser of:
104	104	14 (1) one-half (1/2) of the assessed value of the real property; or
105	105	15 (2) fourteen thousand dollars ($14,000).
106	106	16 (c) Except as provided in subsection (h) and section 40.5 of this
107	107	17 chapter, in the case of a mobile home that is not assessed as real
108	108	18 property or a manufactured home which is not assessed as real
109	109	19 property, an individual's deduction under this section equals the lesser
110	110	20 of:
111	111	21 (1) one-half (1/2) of the assessed value of the mobile home or
112	112	22 manufactured home; or
113	113	23 (2) fourteen thousand dollars ($14,000).
114	114	24 (d) An individual may not be denied the deduction provided under
115	115	25 this section because the individual is absent from the real property,
116	116	26 mobile home, or manufactured home while in a nursing home or
117	117	27 hospital.
118	118	28 (e) For purposes of this section, if real property, a mobile home, or
119	119	29 a manufactured home is owned by:
120	120	30 (1) tenants by the entirety;
121	121	31 (2) joint tenants; or
122	122	32 (3) tenants in common;
123	123	33 only one (1) deduction may be allowed. However, the age requirement
124	124	34 is satisfied if any one (1) of the tenants is at least sixty-five (65) years
125	125	35 of age.
126	126	36 (f) A surviving spouse is entitled to the deduction provided by this
127	127	37 section if:
128	128	38 (1) the surviving spouse is at least sixty (60) years of age on or
129	129	39 before December 31 of the calendar year preceding the year in
130	130	40 which the deduction is claimed;
131	131	41 (2) the surviving spouse's deceased husband or wife was at least
132	132	42 sixty-five (65) years of age at the time of a death;
133	133	2022 IN 1225—LS 7041/DI 134 4
134	134	1 (3) the surviving spouse has not remarried; and
135	135	2 (4) the surviving spouse satisfies the requirements prescribed in
136	136	3 subsection (a)(2) through (a)(8).
137	137	4 (g) An individual who has sold real property to another person
138	138	5 under a contract that provides that the contract buyer is to pay the
139	139	6 property taxes on the real property may not claim the deduction
140	140	7 provided under this section against that real property.
141	141	8 (h) In the case of tenants covered by subsection (a)(2)(B) or
142	142	9 (a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
143	143	10 age, the deduction allowed under this section shall be reduced by an
144	144	11 amount equal to the deduction multiplied by a fraction. The numerator
145	145	12 of the fraction is the number of tenants who are not at least sixty-five
146	146	13 (65) years of age, and the denominator is the total number of tenants.
147	147	14 (i) For purposes of determining the assessed value of the real
148	148	15 property, mobile home, or manufactured home under subsection (a)(6)
149	149	16 for an individual who has received a deduction under this section in a
150	150	17 particular year, increases in assessed value that occur after the later of:
151	151	18 (1) December 31, 2019; or
152	152	19 (2) the first year that the individual has received the deduction;
153	153	20 are not considered unless the increase in assessed value is attributable
154	154	21 to physical improvements to the property. Where there is an increase
155	155	22 in assessed value for purposes of the deduction under this section,
156	156	23 the assessor shall provide a report to the county auditor describing
157	157	24 the physical improvements, if any, that were made to the property
158	158	25 prior to the increase in assessed value.
159	159	26 SECTION 2. [EFFECTIVE JULY 1, 2022] (a) IC 6-1.1-12-9, as
160	160	27 amended by this act, applies to taxable years beginning after
161	161	28 December 31, 2022.
162	162	29 (b) This SECTION expires July 1, 2025.
163	163	2022 IN 1225—LS 7041/DI 134