Indiana 2022 Regular Session

Indiana House Bill HB1308 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. 1308
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1.
7	7	Synopsis: Additional property tax relief for homesteads. Makes
8	8	changes to the property tax deduction and additional circuit breaker
9	9	credit for those over 65 years of age.
10	10	Effective: July 1, 2022.
11	11	Moseley
12	12	January 11, 2022, read first time and referred to Committee on Ways and Means.
13	13	2022 IN 1308—LS 6349/DI 120 Introduced
14	14	Second Regular Session of the 122nd General Assembly (2022)
15	15	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
16	16	Constitution) is being amended, the text of the existing provision will appear in this style type,
17	17	additions will appear in this style type, and deletions will appear in this style type.
18	18	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
19	19	provision adopted), the text of the new provision will appear in this style type. Also, the
20	20	word NEW will appear in that style type in the introductory clause of each SECTION that adds
21	21	a new provision to the Indiana Code or the Indiana Constitution.
22	22	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
23	23	between statutes enacted by the 2021 Regular Session of the General Assembly.
24	24	HOUSE BILL No. 1308
25	25	A BILL FOR AN ACT to amend the Indiana Code concerning
26	26	taxation.
27	27	Be it enacted by the General Assembly of the State of Indiana:
28	28	1 SECTION 1. IC 6-1.1-12-9, AS AMENDED BY P.L.159-2020,
29	29	2 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
30	30	3 JULY 1, 2022]: Sec. 9. (a) An individual may obtain a deduction from
31	31	4 the assessed value of the individual's real property, or mobile home or
32	32	5 manufactured home which is not assessed as real property, if:
33	33	6 (1) the individual is at least sixty-five (65) years of age on or
34	34	7 before December 31 of the calendar year preceding the year in
35	35	8 which the deduction is claimed;
36	36	9 (2) for assessment dates before January 1, 2020, the combined
37	37	10 adjusted gross income (as defined in Section 62 of the Internal
38	38	11 Revenue Code) of:
39	39	12 (A) the individual and the individual's spouse; or
40	40	13 (B) the individual and all other individuals with whom:
41	41	14 (i) the individual shares ownership; or
42	42	15 (ii) the individual is purchasing the property under a
43	43	16 contract;
44	44	17 as joint tenants or tenants in common;
45	45	2022 IN 1308—LS 6349/DI 120 2
46	46	1 for the calendar year preceding the year in which the deduction is
47	47	2 claimed did not exceed twenty-five thousand dollars ($25,000);
48	48	3 (3) for assessment dates after December 31, 2019:
49	49	4 (A) the individual had, in the case of an individual who filed
50	50	5 a single return, adjusted gross income (as defined in Section
51	51	6 62 of the Internal Revenue Code) not exceeding thirty
52	52	7 thousand dollars ($30,000);
53	53	8 (B) the individual had, in the case of an individual who filed
54	54	9 a joint income tax return with the individual's spouse,
55	55	10 combined adjusted gross income (as defined in Section 62 of
56	56	11 the Internal Revenue Code) not exceeding forty thousand
57	57	12 dollars ($40,000); or
58	58	13 (C) the combined adjusted gross income (as defined in Section
59	59	14 62 of the Internal Revenue Code) of the individual and all
60	60	15 other individuals with whom:
61	61	16 (i) the individual shares ownership; or
62	62	17 (ii) the individual is purchasing the property under a
63	63	18 contract;
64	64	19 as joint tenants or tenants in common did not exceed forty
65	65	20 thousand dollars ($40,000);
66	66	21 for the calendar year preceding by two (2) years the calendar year
67	67	22 in which the property taxes are first due and payable;
68	68	23 (4) the individual has owned the real property, mobile home, or
69	69	24 manufactured home for at least one (1) year before claiming the
70	70	25 deduction; or the individual has been buying the real property,
71	71	26 mobile home, or manufactured home under a contract that
72	72	27 provides that the individual is to pay the property taxes on the real
73	73	28 property, mobile home, or manufactured home for at least one (1)
74	74	29 year before claiming the deduction, and the contract or a
75	75	30 memorandum of the contract is recorded in the county recorder's
76	76	31 office;
77	77	32 (5) for assessment dates:
78	78	33 (A) before January 1, 2020, the individual and any individuals
79	79	34 covered by subdivision (2)(B) reside on the real property,
80	80	35 mobile home, or manufactured home; or
81	81	36 (B) after December 31, 2019, the individual and any
82	82	37 individuals covered by subdivision (3)(C) reside on the real
83	83	38 property, mobile home, or manufactured home;
84	84	39 (6) except as provided in subsection (i), the assessed value of the
85	85	40 real property, mobile home, or manufactured home does not
86	86	41 exceed:
87	87	42 (A) before January 1, 2023, two hundred thousand dollars
88	88	2022 IN 1308—LS 6349/DI 120 3
89	89	1 ($200,000); and
90	90	2 (B) after December 31, 2022, three hundred thousand
91	91	3 dollars ($300,000).
92	92	4 (7) the individual receives no other property tax deduction for the
93	93	5 year in which the deduction is claimed, except the deductions
94	94	6 provided by sections 1, 37, (for assessment dates after February
95	95	7 28, 2008) 37.5, and 38 of this chapter; and
96	96	8 (8) the person:
97	97	9 (A) owns the real property, mobile home, or manufactured
98	98	10 home; or
99	99	11 (B) is buying the real property, mobile home, or manufactured
100	100	12 home under contract;
101	101	13 on the date the statement required by section 10.1 of this chapter
102	102	14 is filed.
103	103	15 (b) Except as provided in subsection (h), in the case of real property,
104	104	16 an individual's deduction under this section equals the lesser of:
105	105	17 (1) one-half (1/2) of the assessed value of the real property; or
106	106	18 (2) fourteen thousand dollars ($14,000).
107	107	19 (c) Except as provided in subsection (h) and section 40.5 of this
108	108	20 chapter, in the case of a mobile home that is not assessed as real
109	109	21 property or a manufactured home which is not assessed as real
110	110	22 property, an individual's deduction under this section equals the lesser
111	111	23 of:
112	112	24 (1) one-half (1/2) of the assessed value of the mobile home or
113	113	25 manufactured home; or
114	114	26 (2) fourteen thousand dollars ($14,000).
115	115	27 (d) An individual may not be denied the deduction provided under
116	116	28 this section because the individual is absent from the real property,
117	117	29 mobile home, or manufactured home while in a nursing home or
118	118	30 hospital.
119	119	31 (e) For purposes of this section, if real property, a mobile home, or
120	120	32 a manufactured home is owned by:
121	121	33 (1) tenants by the entirety;
122	122	34 (2) joint tenants; or
123	123	35 (3) tenants in common;
124	124	36 only one (1) deduction may be allowed. However, the age requirement
125	125	37 is satisfied if any one (1) of the tenants is at least sixty-five (65) years
126	126	38 of age.
127	127	39 (f) A surviving spouse is entitled to the deduction provided by this
128	128	40 section if:
129	129	41 (1) the surviving spouse is at least sixty (60) years of age on or
130	130	42 before December 31 of the calendar year preceding the year in
131	131	2022 IN 1308—LS 6349/DI 120 4
132	132	1 which the deduction is claimed;
133	133	2 (2) the surviving spouse's deceased husband or wife was at least
134	134	3 sixty-five (65) years of age at the time of a death;
135	135	4 (3) the surviving spouse has not remarried; and
136	136	5 (4) the surviving spouse satisfies the requirements prescribed in
137	137	6 subsection (a)(2) through (a)(8).
138	138	7 (g) An individual who has sold real property to another person
139	139	8 under a contract that provides that the contract buyer is to pay the
140	140	9 property taxes on the real property may not claim the deduction
141	141	10 provided under this section against that real property.
142	142	11 (h) In the case of tenants covered by subsection (a)(2)(B) or
143	143	12 (a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
144	144	13 age, the deduction allowed under this section shall be reduced by an
145	145	14 amount equal to the deduction multiplied by a fraction. The numerator
146	146	15 of the fraction is the number of tenants who are not at least sixty-five
147	147	16 (65) years of age, and the denominator is the total number of tenants.
148	148	17 (i) For purposes of determining the assessed value of the real
149	149	18 property, mobile home, or manufactured home under subsection (a)(6)
150	150	19 for an individual who has received a deduction under this section in a
151	151	20 particular year, increases in assessed value that occur after the later of:
152	152	21 (1) December 31, 2019; or
153	153	22 (2) the first year that the individual has received the deduction;
154	154	23 are not considered unless the increase in assessed value is attributable
155	155	24 to physical improvements to the property.
156	156	25 SECTION 2. IC 6-1.1-20.6-8.5, AS AMENDED BY P.L.159-2020,
157	157	26 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
158	158	27 JULY 1, 2022]: Sec. 8.5. (a) This section applies to an individual who:
159	159	28 (1) qualified for a standard deduction granted under
160	160	29 IC 6-1.1-12-37 for the individual's homestead property in the
161	161	30 immediately preceding calendar year (or was married at the time
162	162	31 of death to a deceased spouse who qualified for a standard
163	163	32 deduction granted under IC 6-1.1-12-37 for the individual's
164	164	33 homestead property in the immediately preceding calendar year);
165	165	34 (2) qualifies for a standard deduction granted under
166	166	35 IC 6-1.1-12-37 for the same homestead property in the current
167	167	36 calendar year;
168	168	37 (3) is or will be at least sixty-five (65) years of age on or before
169	169	38 December 31 of the calendar year immediately preceding the
170	170	39 current calendar year; and
171	171	40 (4) had:
172	172	41 (A) in the case of an individual who filed a single return,
173	173	42 adjusted gross income (as defined in Section 62 of the Internal
174	174	2022 IN 1308—LS 6349/DI 120 5
175	175	1 Revenue Code) not exceeding thirty thousand dollars
176	176	2 ($30,000); or
177	177	3 (B) in the case of an individual who filed a joint income tax
178	178	4 return with the individual's spouse, combined adjusted gross
179	179	5 income (as defined in Section 62 of the Internal Revenue
180	180	6 Code) not exceeding forty thousand dollars ($40,000);
181	181	7 for the calendar year preceding by two (2) years the calendar year
182	182	8 in which property taxes are first due and payable.
183	183	9 (b) Except as provided in subsection (g), this section does not apply
184	184	10 if:
185	185	11 (1) for an individual who received a credit under this section
186	186	12 before January 1, 2020, the gross assessed value of the homestead
187	187	13 on the assessment date for which property taxes are imposed is at
188	188	14 least two hundred thousand dollars ($200,000); or
189	189	15 (2) for an individual who initially applies for a credit under this
190	190	16 section after December 31, 2019, and before January 1, 2023,
191	191	17 the assessed value of the individual's Indiana real property is at
192	192	18 least two hundred thousand dollars ($200,000); or
193	193	19 (3) for an individual who initially applies for a credit under
194	194	20 this section after December 31, 2022, the assessed value of the
195	195	21 individual's Indiana real property is at least three hundred
196	196	22 thousand dollars ($300,000).
197	197	23 (c) An individual is entitled to an additional credit under this section
198	198	24 for property taxes first due and payable for a calendar year on a
199	199	25 homestead if:
200	200	26 (1) the individual and the homestead qualify for the credit under
201	201	27 subsection (a) for the calendar year;
202	202	28 (2) the homestead is not disqualified for the credit under
203	203	29 subsection (b) for the calendar year; and
204	204	30 (3) the filing requirements under subsection (e) are met.
205	205	31 (d) The amount of the credit is equal to the greater of zero (0) or the
206	206	32 result of:
207	207	33 (1) the property tax liability first due and payable on the
208	208	34 homestead property for the calendar year; minus
209	209	35 (2) the result of:
210	210	36 (A) the property tax liability first due and payable on the
211	211	37 qualified homestead property for the immediately preceding
212	212	38 year after the application of the credit granted under this
213	213	39 section for that year; multiplied by
214	214	40 (B) one and two hundredths (1.02).
215	215	41 However, property tax liability imposed on any improvements to or
216	216	42 expansion of the homestead property after the assessment date for
217	217	2022 IN 1308—LS 6349/DI 120 6
218	218	1 which property tax liability described in subdivision (2) was imposed
219	219	2 shall not be considered in determining the credit granted under this
220	220	3 section in the current calendar year.
221	221	4 (e) Applications for a credit under this section shall be filed in the
222	222	5 manner provided for an application for a deduction under
223	223	6 IC 6-1.1-12-9. However, an individual who remains eligible for the
224	224	7 credit in the following year is not required to file a statement to apply
225	225	8 for the credit in the following year. An individual who receives a credit
226	226	9 under this section in a particular year and who becomes ineligible for
227	227	10 the credit in the following year shall notify the auditor of the county in
228	228	11 which the homestead is located of the individual's ineligibility not later
229	229	12 than sixty (60) days after the individual becomes ineligible.
230	230	13 (f) The auditor of each county shall, in a particular year, apply a
231	231	14 credit provided under this section to each individual who received the
232	232	15 credit in the preceding year unless the auditor determines that the
233	233	16 individual is no longer eligible for the credit.
234	234	17 (g) For purposes of determining the:
235	235	18 (1) assessed value of the homestead on the assessment date for
236	236	19 which property taxes are imposed under subsection (b)(1); or
237	237	20 (2) assessed value of the individual's Indiana real property under
238	238	21 subsection (b)(2);
239	239	22 for an individual who has received a credit under this section in a
240	240	23 particular year, increases in assessed value that occur after the later of
241	241	24 December 31, 2019, or the first year that the individual has received
242	242	25 the credit are not considered unless the increase in assessed value is
243	243	26 attributable to physical improvements to the property.
244	244	2022 IN 1308—LS 6349/DI 120