Introduced Version
HOUSE BILL No. 1308
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1.
Synopsis: Additional property tax relief for homesteads. Makes
changes to the property tax deduction and additional circuit breaker
credit for those over 65 years of age.
Effective: July 1, 2022.
Moseley
January 11, 2022, read first time and referred to Committee on Ways and Means.
2022 IN 1308—LS 6349/DI 120 Introduced
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
HOUSE BILL No. 1308
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-12-9, AS AMENDED BY P.L.159-2020,
2 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2022]: Sec. 9. (a) An individual may obtain a deduction from
4 the assessed value of the individual's real property, or mobile home or
5 manufactured home which is not assessed as real property, if:
6 (1) the individual is at least sixty-five (65) years of age on or
7 before December 31 of the calendar year preceding the year in
8 which the deduction is claimed;
9 (2) for assessment dates before January 1, 2020, the combined
10 adjusted gross income (as defined in Section 62 of the Internal
11 Revenue Code) of:
12 (A) the individual and the individual's spouse; or
13 (B) the individual and all other individuals with whom:
14 (i) the individual shares ownership; or
15 (ii) the individual is purchasing the property under a
16 contract;
17 as joint tenants or tenants in common;
2022 IN 1308—LS 6349/DI 120 2
1 for the calendar year preceding the year in which the deduction is
2 claimed did not exceed twenty-five thousand dollars ($25,000);
3 (3) for assessment dates after December 31, 2019:
4 (A) the individual had, in the case of an individual who filed
5 a single return, adjusted gross income (as defined in Section
6 62 of the Internal Revenue Code) not exceeding thirty
7 thousand dollars ($30,000);
8 (B) the individual had, in the case of an individual who filed
9 a joint income tax return with the individual's spouse,
10 combined adjusted gross income (as defined in Section 62 of
11 the Internal Revenue Code) not exceeding forty thousand
12 dollars ($40,000); or
13 (C) the combined adjusted gross income (as defined in Section
14 62 of the Internal Revenue Code) of the individual and all
15 other individuals with whom:
16 (i) the individual shares ownership; or
17 (ii) the individual is purchasing the property under a
18 contract;
19 as joint tenants or tenants in common did not exceed forty
20 thousand dollars ($40,000);
21 for the calendar year preceding by two (2) years the calendar year
22 in which the property taxes are first due and payable;
23 (4) the individual has owned the real property, mobile home, or
24 manufactured home for at least one (1) year before claiming the
25 deduction; or the individual has been buying the real property,
26 mobile home, or manufactured home under a contract that
27 provides that the individual is to pay the property taxes on the real
28 property, mobile home, or manufactured home for at least one (1)
29 year before claiming the deduction, and the contract or a
30 memorandum of the contract is recorded in the county recorder's
31 office;
32 (5) for assessment dates:
33 (A) before January 1, 2020, the individual and any individuals
34 covered by subdivision (2)(B) reside on the real property,
35 mobile home, or manufactured home; or
36 (B) after December 31, 2019, the individual and any
37 individuals covered by subdivision (3)(C) reside on the real
38 property, mobile home, or manufactured home;
39 (6) except as provided in subsection (i), the assessed value of the
40 real property, mobile home, or manufactured home does not
41 exceed:
42 (A) before January 1, 2023, two hundred thousand dollars
2022 IN 1308—LS 6349/DI 120 3
1 ($200,000); and
2 (B) after December 31, 2022, three hundred thousand
3 dollars ($300,000).
4 (7) the individual receives no other property tax deduction for the
5 year in which the deduction is claimed, except the deductions
6 provided by sections 1, 37, (for assessment dates after February
7 28, 2008) 37.5, and 38 of this chapter; and
8 (8) the person:
9 (A) owns the real property, mobile home, or manufactured
10 home; or
11 (B) is buying the real property, mobile home, or manufactured
12 home under contract;
13 on the date the statement required by section 10.1 of this chapter
14 is filed.
15 (b) Except as provided in subsection (h), in the case of real property,
16 an individual's deduction under this section equals the lesser of:
17 (1) one-half (1/2) of the assessed value of the real property; or
18 (2) fourteen thousand dollars ($14,000).
19 (c) Except as provided in subsection (h) and section 40.5 of this
20 chapter, in the case of a mobile home that is not assessed as real
21 property or a manufactured home which is not assessed as real
22 property, an individual's deduction under this section equals the lesser
23 of:
24 (1) one-half (1/2) of the assessed value of the mobile home or
25 manufactured home; or
26 (2) fourteen thousand dollars ($14,000).
27 (d) An individual may not be denied the deduction provided under
28 this section because the individual is absent from the real property,
29 mobile home, or manufactured home while in a nursing home or
30 hospital.
31 (e) For purposes of this section, if real property, a mobile home, or
32 a manufactured home is owned by:
33 (1) tenants by the entirety;
34 (2) joint tenants; or
35 (3) tenants in common;
36 only one (1) deduction may be allowed. However, the age requirement
37 is satisfied if any one (1) of the tenants is at least sixty-five (65) years
38 of age.
39 (f) A surviving spouse is entitled to the deduction provided by this
40 section if:
41 (1) the surviving spouse is at least sixty (60) years of age on or
42 before December 31 of the calendar year preceding the year in
2022 IN 1308—LS 6349/DI 120 4
1 which the deduction is claimed;
2 (2) the surviving spouse's deceased husband or wife was at least
3 sixty-five (65) years of age at the time of a death;
4 (3) the surviving spouse has not remarried; and
5 (4) the surviving spouse satisfies the requirements prescribed in
6 subsection (a)(2) through (a)(8).
7 (g) An individual who has sold real property to another person
8 under a contract that provides that the contract buyer is to pay the
9 property taxes on the real property may not claim the deduction
10 provided under this section against that real property.
11 (h) In the case of tenants covered by subsection (a)(2)(B) or
12 (a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
13 age, the deduction allowed under this section shall be reduced by an
14 amount equal to the deduction multiplied by a fraction. The numerator
15 of the fraction is the number of tenants who are not at least sixty-five
16 (65) years of age, and the denominator is the total number of tenants.
17 (i) For purposes of determining the assessed value of the real
18 property, mobile home, or manufactured home under subsection (a)(6)
19 for an individual who has received a deduction under this section in a
20 particular year, increases in assessed value that occur after the later of:
21 (1) December 31, 2019; or
22 (2) the first year that the individual has received the deduction;
23 are not considered unless the increase in assessed value is attributable
24 to physical improvements to the property.
25 SECTION 2. IC 6-1.1-20.6-8.5, AS AMENDED BY P.L.159-2020,
26 SECTION 43, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
27 JULY 1, 2022]: Sec. 8.5. (a) This section applies to an individual who:
28 (1) qualified for a standard deduction granted under
29 IC 6-1.1-12-37 for the individual's homestead property in the
30 immediately preceding calendar year (or was married at the time
31 of death to a deceased spouse who qualified for a standard
32 deduction granted under IC 6-1.1-12-37 for the individual's
33 homestead property in the immediately preceding calendar year);
34 (2) qualifies for a standard deduction granted under
35 IC 6-1.1-12-37 for the same homestead property in the current
36 calendar year;
37 (3) is or will be at least sixty-five (65) years of age on or before
38 December 31 of the calendar year immediately preceding the
39 current calendar year; and
40 (4) had:
41 (A) in the case of an individual who filed a single return,
42 adjusted gross income (as defined in Section 62 of the Internal
2022 IN 1308—LS 6349/DI 120 5
1 Revenue Code) not exceeding thirty thousand dollars
2 ($30,000); or
3 (B) in the case of an individual who filed a joint income tax
4 return with the individual's spouse, combined adjusted gross
5 income (as defined in Section 62 of the Internal Revenue
6 Code) not exceeding forty thousand dollars ($40,000);
7 for the calendar year preceding by two (2) years the calendar year
8 in which property taxes are first due and payable.
9 (b) Except as provided in subsection (g), this section does not apply
10 if:
11 (1) for an individual who received a credit under this section
12 before January 1, 2020, the gross assessed value of the homestead
13 on the assessment date for which property taxes are imposed is at
14 least two hundred thousand dollars ($200,000); or
15 (2) for an individual who initially applies for a credit under this
16 section after December 31, 2019, and before January 1, 2023,
17 the assessed value of the individual's Indiana real property is at
18 least two hundred thousand dollars ($200,000); or
19 (3) for an individual who initially applies for a credit under
20 this section after December 31, 2022, the assessed value of the
21 individual's Indiana real property is at least three hundred
22 thousand dollars ($300,000).
23 (c) An individual is entitled to an additional credit under this section
24 for property taxes first due and payable for a calendar year on a
25 homestead if:
26 (1) the individual and the homestead qualify for the credit under
27 subsection (a) for the calendar year;
28 (2) the homestead is not disqualified for the credit under
29 subsection (b) for the calendar year; and
30 (3) the filing requirements under subsection (e) are met.
31 (d) The amount of the credit is equal to the greater of zero (0) or the
32 result of:
33 (1) the property tax liability first due and payable on the
34 homestead property for the calendar year; minus
35 (2) the result of:
36 (A) the property tax liability first due and payable on the
37 qualified homestead property for the immediately preceding
38 year after the application of the credit granted under this
39 section for that year; multiplied by
40 (B) one and two hundredths (1.02).
41 However, property tax liability imposed on any improvements to or
42 expansion of the homestead property after the assessment date for
2022 IN 1308—LS 6349/DI 120 6
1 which property tax liability described in subdivision (2) was imposed
2 shall not be considered in determining the credit granted under this
3 section in the current calendar year.
4 (e) Applications for a credit under this section shall be filed in the
5 manner provided for an application for a deduction under
6 IC 6-1.1-12-9. However, an individual who remains eligible for the
7 credit in the following year is not required to file a statement to apply
8 for the credit in the following year. An individual who receives a credit
9 under this section in a particular year and who becomes ineligible for
10 the credit in the following year shall notify the auditor of the county in
11 which the homestead is located of the individual's ineligibility not later
12 than sixty (60) days after the individual becomes ineligible.
13 (f) The auditor of each county shall, in a particular year, apply a
14 credit provided under this section to each individual who received the
15 credit in the preceding year unless the auditor determines that the
16 individual is no longer eligible for the credit.
17 (g) For purposes of determining the:
18 (1) assessed value of the homestead on the assessment date for
19 which property taxes are imposed under subsection (b)(1); or
20 (2) assessed value of the individual's Indiana real property under
21 subsection (b)(2);
22 for an individual who has received a credit under this section in a
23 particular year, increases in assessed value that occur after the later of
24 December 31, 2019, or the first year that the individual has received
25 the credit are not considered unless the increase in assessed value is
26 attributable to physical improvements to the property.
2022 IN 1308—LS 6349/DI 120