Indiana 2022 Regular Session

Indiana Senate Bill SB0236 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~SB0236.1~~
2		-	~~January 26, 2022~~
	1	+
	2	+	Introduced Version
3	3		SENATE BILL No. 236
4	4		_____
5		-	DIGEST OF ~~SB 236 (Updated January 25, 2022 10:35 am - DI 129)~~
6		-	Citations Affected: IC 6-1.1~~; noncode~~.
	5	+	DIGEST OF INTRODUCED BILL
	6	+	Citations Affected: IC 6-1.1-12-9.
7	7		Synopsis: Eligibility for senior property tax deduction. Increases the
8	8		adjusted gross income threshold for an individual at least 65 years of
9	9		age to obtain a deduction from the assessed value of the individual's
10	10		real property from $30,000 to $40,000. Increases the threshold for an
11	11		individual at least 65 years of age filing a joint return from $40,000 to
12	12		$50,000. Increases the maximum assessed value of the real property
13		-	from $200,000 to $~~300~~,000 to be eligible for the deduction. Provides
	13	+	from $200,000 to $400,000 to be eligible for the deduction. Provides
14	14		that an individual is not entitled to a refund for the deduction for any
15	15		previous year in which the assessed value of the individual's real
16	16		property would have qualified for the deduction for that year due to a
17		-	subsequent increase in the assessed value threshold.
	17	+	subsequent increase in the assessed value threshold. Provides that an
	18	+	individual must apply for the deduction each year.
18	19		Effective: July 1, 2022.
19		-	~~Holdman,~~ Qaddoura, ~~Rogers~~
	20	+	Qaddoura, Holdman
20	21		January 6, 2022, read first time and referred to Committee on Tax and Fiscal Policy.
21		-	January 25, 2022, amended, reported favorably — Do Pass.
22		-	SB 236—LS 6506/DI 134 January 26, 2022
	22	+	2022 IN 236—LS 6506/DI 134 Introduced
23	23		Second Regular Session of the 122nd General Assembly (2022)
24	24		PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
25	25		Constitution) is being amended, the text of the existing provision will appear in this style type,
26	26		additions will appear in this style type, and deletions will appear in this style type.
27	27		Additions: Whenever a new statutory provision is being enacted (or a new constitutional
28	28		provision adopted), the text of the new provision will appear in this style type. Also, the
29	29		word NEW will appear in that style type in the introductory clause of each SECTION that adds
30	30		a new provision to the Indiana Code or the Indiana Constitution.
31	31		Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
32	32		between statutes enacted by the 2021 Regular Session of the General Assembly.
33	33		SENATE BILL No. 236
34	34		A BILL FOR AN ACT to amend the Indiana Code concerning
35	35		taxation.
36	36		Be it enacted by the General Assembly of the State of Indiana:
37	37		1 SECTION 1. IC 6-1.1-12-9, AS AMENDED BY P.L.159-2020,
38	38		2 SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39	39		3 JULY 1, 2022]: Sec. 9. (a) An individual may obtain a deduction from
40	40		4 the assessed value of the individual's real property, or mobile home or
41	41		5 manufactured home which is not assessed as real property, if:
42	42		6 (1) the individual is at least sixty-five (65) years of age on or
43	43		7 before December 31 of the calendar year preceding the year in
44	44		8 which the deduction is claimed;
45	45		9 (2) for assessment dates before January 1, 2020, the combined
46	46		10 adjusted gross income (as defined in Section 62 of the Internal
47	47		11 Revenue Code) of:
48	48		12 (A) the individual and the individual's spouse; or
49	49		13 (B) the individual and all other individuals with whom:
50	50		14 (i) the individual shares ownership; or
51	51		15 (ii) the individual is purchasing the property under a
52	52		16 contract;
53	53		17 as joint tenants or tenants in common;
54		-	SB 236—LS 6506/DI 134 2
	54	+	2022 IN 236—LS 6506/DI 134 2
55	55		1 for the calendar year preceding the year in which the deduction is
56	56		2 claimed did not exceed twenty-five thousand dollars ($25,000);
57	57		3 (3) for assessment dates after December 31, 2019:
58	58		4 (A) the individual had, in the case of an individual who filed
59	59		5 a single return, adjusted gross income (as defined in Section
60	60		6 62 of the Internal Revenue Code) not exceeding thirty forty
61	61		7 thousand dollars ($30,000); ($40,000);
62	62		8 (B) the individual had, in the case of an individual who filed
63	63		9 a joint income tax return with the individual's spouse,
64	64		10 combined adjusted gross income (as defined in Section 62 of
65	65		11 the Internal Revenue Code) not exceeding forty fifty thousand
66	66		12 dollars ($40,000); ($50,000); or
67	67		13 (C) the combined adjusted gross income (as defined in Section
68	68		14 62 of the Internal Revenue Code) of the individual and all
69	69		15 other individuals with whom:
70	70		16 (i) the individual shares ownership; or
71	71		17 (ii) the individual is purchasing the property under a
72	72		18 contract;
73	73		19 as joint tenants or tenants in common did not exceed forty
74	74		20 thousand dollars ($40,000);
75	75		21 for the calendar year preceding by two (2) years the calendar year
76	76		22 in which the property taxes are first due and payable;
77	77		23 (4) the individual has owned the real property, mobile home, or
78	78		24 manufactured home for at least one (1) year before claiming the
79	79		25 deduction; or the individual has been buying the real property,
80	80		26 mobile home, or manufactured home under a contract that
81	81		27 provides that the individual is to pay the property taxes on the real
82	82		28 property, mobile home, or manufactured home for at least one (1)
83	83		29 year before claiming the deduction, and the contract or a
84	84		30 memorandum of the contract is recorded in the county recorder's
85	85		31 office;
86	86		32 (5) for assessment dates:
87	87		33 (A) before January 1, 2020, the individual and any individuals
88	88		34 covered by subdivision (2)(B) reside on the real property,
89	89		35 mobile home, or manufactured home; or
90	90		36 (B) after December 31, 2019, the individual and any
91	91		37 individuals covered by subdivision (3)(C) reside on the real
92	92		38 property, mobile home, or manufactured home;
93	93		39 (6) except as provided in subsection (i), the assessed value of the
94	94		40 real property, mobile home, or manufactured home does not
95		-	41 exceed two ~~three~~ hundred thousand dollars ($200,000).
96		-	42 ($~~300~~,000).
97		-	SB 236—LS 6506/DI 134 3
	95	+	41 exceed two four hundred thousand dollars ($200,000).
	96	+	42 ($400,000).
	97	+	2022 IN 236—LS 6506/DI 134 3
98	98		1 (7) the individual receives no other property tax deduction for the
99	99		2 year in which the deduction is claimed, except the deductions
100	100		3 provided by sections 1, 37, (for assessment dates after February
101	101		4 28, 2008) 37.5, and 38 of this chapter; and
102	102		5 (8) the person:
103	103		6 (A) owns the real property, mobile home, or manufactured
104	104		7 home; or
105	105		8 (B) is buying the real property, mobile home, or manufactured
106	106		9 home under contract;
107	107		10 on the date the statement required by section 10.1 of this chapter
108	108		11 is filed.
109	109		12 (b) Except as provided in subsection (h), in the case of real property,
110	110		13 an individual's deduction under this section equals the lesser of:
111	111		14 (1) one-half (1/2) of the assessed value of the real property; or
112	112		15 (2) fourteen thousand dollars ($14,000).
113	113		16 (c) Except as provided in subsection (h) and section 40.5 of this
114	114		17 chapter, in the case of a mobile home that is not assessed as real
115	115		18 property or a manufactured home which is not assessed as real
116	116		19 property, an individual's deduction under this section equals the lesser
117	117		20 of:
118	118		21 (1) one-half (1/2) of the assessed value of the mobile home or
119	119		22 manufactured home; or
120	120		23 (2) fourteen thousand dollars ($14,000).
121	121		24 (d) An individual may not be denied the deduction provided under
122	122		25 this section because the individual is absent from the real property,
123	123		26 mobile home, or manufactured home while in a nursing home or
124	124		27 hospital.
125	125		28 (e) For purposes of this section, if real property, a mobile home, or
126	126		29 a manufactured home is owned by:
127	127		30 (1) tenants by the entirety;
128	128		31 (2) joint tenants; or
129	129		32 (3) tenants in common;
130	130		33 only one (1) deduction may be allowed. However, the age requirement
131	131		34 is satisfied if any one (1) of the tenants is at least sixty-five (65) years
132	132		35 of age.
133	133		36 (f) A surviving spouse is entitled to the deduction provided by this
134	134		37 section if:
135	135		38 (1) the surviving spouse is at least sixty (60) years of age on or
136	136		39 before December 31 of the calendar year preceding the year in
137	137		40 which the deduction is claimed;
138	138		41 (2) the surviving spouse's deceased husband or wife was at least
139	139		42 sixty-five (65) years of age at the time of a death;
140		-	SB 236—LS 6506/DI 134 4
	140	+	2022 IN 236—LS 6506/DI 134 4
141	141		1 (3) the surviving spouse has not remarried; and
142	142		2 (4) the surviving spouse satisfies the requirements prescribed in
143	143		3 subsection (a)(2) through (a)(8).
144	144		4 (g) An individual who has sold real property to another person
145	145		5 under a contract that provides that the contract buyer is to pay the
146	146		6 property taxes on the real property may not claim the deduction
147	147		7 provided under this section against that real property.
148	148		8 (h) In the case of tenants covered by subsection (a)(2)(B) or
149	149		9 (a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
150	150		10 age, the deduction allowed under this section shall be reduced by an
151	151		11 amount equal to the deduction multiplied by a fraction. The numerator
152	152		12 of the fraction is the number of tenants who are not at least sixty-five
153	153		13 (65) years of age, and the denominator is the total number of tenants.
154	154		14 (i) For purposes of determining the assessed value of the real
155	155		15 property, mobile home, or manufactured home under subsection (a)(6)
156	156		16 for an individual who has received a deduction under this section in a
157	157		17 particular any previous year, increases in assessed value that occur
158	158		18 after the later of:
159	159		19 (1) December 31, 2019; or
160	160		20 (2) the first year that the individual has received the deduction;
161	161		21 are not considered unless the increase in assessed value is attributable
162	162		22 to physical improvements to the property. substantial renovation or
163	163		23 new improvements.
164	164		24 (j) Notwithstanding subsection (i), an individual is not entitled
165	165		25 to a refund for any part of a deduction under this section for any
166	166		26 previous year in which the assessed value of the individual's real
167	167		27 property would have qualified for the deduction for that year due
168	168		28 to a subsequent increase in the assessed value threshold under
169	169		29 subsection (a)(6).
170		-	30 SECTION 2. [EFFECTIVE JULY 1, 2022] (a) IC 6-1.1-12-9, as
171		-	31 amended by this act, applies to taxable years beginning after
172		-	32 December 31, 2022.
173		-	33 (b) This SECTION expires July 1, 2025.
174		-	SB 236—LS 6506/DI 134 5
175		-	COMMITTEE REPORT
176		-	Madam President: The Senate Committee on Tax and Fiscal Policy,
177		-	to which was referred Senate Bill No. 236, has had the same under
178		-	consideration and begs leave to report the same back to the Senate with
179		-	the recommendation that said bill be AMENDED as follows:
180		-	Page 2, line 41, delete "four" and insert "three".
181		-	Page 2, line 42, delete "($400,000)." and insert "($300,000).".
182		-	Page 4, delete lines 30 through 33.
183		-	and when so amended that said bill do pass.
184		-	(Reference is to SB 236 as introduced.)
185		-	HOLDMAN, Chairperson
186		-	Committee Vote: Yeas 13, Nays 0.
187		-	SB 236—LS 6506/DI 134
	170	+	30 (k) An individual must file an application for the deduction
	171	+	31 under this section on the form prescribed by the department of
	172	+	32 local government finance each year that the individual seeks the
	173	+	33 deduction.
	174	+	34 SECTION 2. [EFFECTIVE JULY 1, 2022] (a) IC 6-1.1-12-9, as
	175	+	35 amended by this act, applies to taxable years beginning after
	176	+	36 December 31, 2022.
	177	+	37 (b) This SECTION expires July 1, 2025.
	178	+	2022 IN 236—LS 6506/DI 134