Introduced Version
HOUSE BILL No. 1576
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-12-37.
Synopsis: Deadline to apply for standard deduction. Provides that to
obtain the homestead standard deduction for a desired calendar year in
which property taxes are first due and payable, the statement to obtain
the deduction must either be completed and dated in the immediately
preceding calendar year and filed with the county auditor on or before
January 5 of the calendar year in which the property taxes are first due
and payable, or, subject to a processing fee of $100, completed, dated,
and filed with the county auditor on or before April 30 of the year in
which the property taxes are first due and payable.
Effective: July 1, 2023.
O'Brien, Bartels, Miller D
January 19, 2023, read first time and referred to Committee on Ways and Means.
2023 IN 1576—LS 7175/DI 134 Introduced
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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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
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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 2022 Regular Session of the General Assembly.
HOUSE BILL No. 1576
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 6-1.1-12-37, AS AMENDED BY P.L.174-2022,
2 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2023]: Sec. 37. (a) The following definitions apply throughout
4 this section:
5 (1) "Dwelling" means any of the following:
6 (A) Residential real property improvements that an individual
7 uses as the individual's residence, including a house or garage.
8 (B) A mobile home that is not assessed as real property that an
9 individual uses as the individual's residence.
10 (C) A manufactured home that is not assessed as real property
11 that an individual uses as the individual's residence.
12 (2) "Homestead" means an individual's principal place of
13 residence:
14 (A) that is located in Indiana;
15 (B) that:
16 (i) the individual owns;
17 (ii) the individual is buying under a contract recorded in the
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1 county recorder's office, or evidenced by a memorandum of
2 contract recorded in the county recorder's office under
3 IC 36-2-11-20, that provides that the individual is to pay the
4 property taxes on the residence, and that obligates the owner
5 to convey title to the individual upon completion of all of the
6 individual's contract obligations;
7 (iii) the individual is entitled to occupy as a
8 tenant-stockholder (as defined in 26 U.S.C. 216) of a
9 cooperative housing corporation (as defined in 26 U.S.C.
10 216); or
11 (iv) is a residence described in section 17.9 of this chapter
12 that is owned by a trust if the individual is an individual
13 described in section 17.9 of this chapter; and
14 (C) that consists of a dwelling and the real estate, not
15 exceeding one (1) acre, that immediately surrounds that
16 dwelling.
17 Except as provided in subsection (k), the term does not include
18 property owned by a corporation, partnership, limited liability
19 company, or other entity not described in this subdivision.
20 (b) Each year a homestead is eligible for a standard deduction from
21 the assessed value of the homestead for an assessment date. Except as
22 provided in subsection (p), the deduction provided by this section
23 applies to property taxes first due and payable for an assessment date
24 only if an individual has an interest in the homestead described in
25 subsection (a)(2)(B) on:
26 (1) the assessment date; or
27 (2) any date in the same year after an assessment date that a
28 statement is filed under subsection (e) or section 44 of this
29 chapter, if the property consists of real property.
30 If more than one (1) individual or entity qualifies property as a
31 homestead under subsection (a)(2)(B) for an assessment date, only one
32 (1) standard deduction from the assessed value of the homestead may
33 be applied for the assessment date. Subject to subsection (c), the
34 auditor of the county shall record and make the deduction for the
35 individual or entity qualifying for the deduction.
36 (c) Except as provided in section 40.5 of this chapter, the total
37 amount of the deduction that a person may receive under this section
38 for a particular year is the lesser of:
39 (1) sixty percent (60%) of the assessed value of the real property,
40 mobile home not assessed as real property, or manufactured home
41 not assessed as real property; or
42 (2) for assessment dates:
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1 (A) before January 1, 2023, forty-five thousand dollars
2 ($45,000); or
3 (B) after December 31, 2022, forty-eight thousand dollars
4 ($48,000).
5 (d) A person who has sold real property, a mobile home not assessed
6 as real property, or a manufactured home not assessed as real property
7 to another person under a contract that provides that the contract buyer
8 is to pay the property taxes on the real property, mobile home, or
9 manufactured home may not claim the deduction provided under this
10 section with respect to that real property, mobile home, or
11 manufactured home.
12 (e) Except as provided in sections 17.8 and 44 of this chapter and
13 subject to section 45 of this chapter, an individual who desires to claim
14 the deduction provided by this section must file a certified statement on
15 forms prescribed by the department of local government finance, with
16 the auditor of the county in which the homestead is located. The
17 statement must include:
18 (1) the parcel number or key number of the property and the name
19 of the city, town, or township in which the property is located;
20 (2) the name of any other location in which the applicant or the
21 applicant's spouse owns, is buying, or has a beneficial interest in
22 residential real property;
23 (3) the names of:
24 (A) the applicant and the applicant's spouse (if any):
25 (i) as the names appear in the records of the United States
26 Social Security Administration for the purposes of the
27 issuance of a Social Security card and Social Security
28 number; or
29 (ii) that they use as their legal names when they sign their
30 names on legal documents;
31 if the applicant is an individual; or
32 (B) each individual who qualifies property as a homestead
33 under subsection (a)(2)(B) and the individual's spouse (if any):
34 (i) as the names appear in the records of the United States
35 Social Security Administration for the purposes of the
36 issuance of a Social Security card and Social Security
37 number; or
38 (ii) that they use as their legal names when they sign their
39 names on legal documents;
40 if the applicant is not an individual; and
41 (4) either:
42 (A) the last five (5) digits of the applicant's Social Security
2023 IN 1576—LS 7175/DI 134 4
1 number and the last five (5) digits of the Social Security
2 number of the applicant's spouse (if any); or
3 (B) if the applicant or the applicant's spouse (if any) does not
4 have a Social Security number, any of the following for that
5 individual:
6 (i) The last five (5) digits of the individual's driver's license
7 number.
8 (ii) The last five (5) digits of the individual's state
9 identification card number.
10 (iii) The last five (5) digits of a preparer tax identification
11 number that is obtained by the individual through the
12 Internal Revenue Service of the United States.
13 (iv) If the individual does not have a driver's license, a state
14 identification card, or an Internal Revenue Service preparer
15 tax identification number, the last five (5) digits of a control
16 number that is on a document issued to the individual by the
17 United States government.
18 If a form or statement provided to the county auditor under this section,
19 IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or
20 part or all of the Social Security number of a party or other number
21 described in subdivision (4)(B) of a party, the telephone number and
22 the Social Security number or other number described in subdivision
23 (4)(B) included are confidential. The statement may be filed in person
24 or by mail. If the statement is mailed, the mailing must be postmarked
25 on or before the last day for filing. The statement applies for that first
26 year and any succeeding year for which the deduction is allowed. To
27 obtain the deduction for a desired calendar year in which property taxes
28 are first due and payable, the statement must either be completed and
29 dated in the immediately preceding calendar year and filed with the
30 county auditor on or before January 5 of the calendar year in which the
31 property taxes are first due and payable, or, subject to a processing
32 fee of one hundred dollars ($100), completed, dated, and filed with
33 the county auditor on or before April 30 of the year in which the
34 property taxes are first due and payable.
35 (f) Except as provided in subsection (n), if a person who is
36 receiving, or seeks to receive, the deduction provided by this section in
37 the person's name:
38 (1) changes the use of the individual's property so that part or all
39 of the property no longer qualifies for the deduction under this
40 section; or
41 (2) is not eligible for a deduction under this section because the
42 person is already receiving:
2023 IN 1576—LS 7175/DI 134 5
1 (A) a deduction under this section in the person's name as an
2 individual or a spouse; or
3 (B) a deduction under the law of another state that is
4 equivalent to the deduction provided by this section;
5 the person must file a certified statement with the auditor of the county,
6 notifying the auditor of the person's ineligibility, not more than sixty
7 (60) days after the date of the change in eligibility. A person who fails
8 to file the statement required by this subsection may, under
9 IC 6-1.1-36-17, be liable for any additional taxes that would have been
10 due on the property if the person had filed the statement as required by
11 this subsection plus a civil penalty equal to ten percent (10%) of the
12 additional taxes due. The civil penalty imposed under this subsection
13 is in addition to any interest and penalties for a delinquent payment that
14 might otherwise be due. One percent (1%) of the total civil penalty
15 collected under this subsection shall be transferred by the county to the
16 department of local government finance for use by the department in
17 establishing and maintaining the homestead property data base under
18 subsection (i) and, to the extent there is money remaining, for any other
19 purposes of the department. This amount becomes part of the property
20 tax liability for purposes of this article.
21 (g) The department of local government finance may adopt rules or
22 guidelines concerning the application for a deduction under this
23 section.
24 (h) This subsection does not apply to property in the first year for
25 which a deduction is claimed under this section if the sole reason that
26 a deduction is claimed on other property is that the individual or
27 married couple maintained a principal residence at the other property
28 on the assessment date in the same year in which an application for a
29 deduction is filed under this section or, if the application is for a
30 homestead that is assessed as personal property, on the assessment date
31 in the immediately preceding year and the individual or married couple
32 is moving the individual's or married couple's principal residence to the
33 property that is the subject of the application. Except as provided in
34 subsection (n), the county auditor may not grant an individual or a
35 married couple a deduction under this section if:
36 (1) the individual or married couple, for the same year, claims the
37 deduction on two (2) or more different applications for the
38 deduction; and
39 (2) the applications claim the deduction for different property.
40 (i) The department of local government finance shall provide secure
41 access to county auditors to a homestead property data base that
42 includes access to the homestead owner's name and the numbers
2023 IN 1576—LS 7175/DI 134 6
1 required from the homestead owner under subsection (e)(4) for the sole
2 purpose of verifying whether an owner is wrongly claiming a deduction
3 under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
4 IC 6-3.6-5 (after December 31, 2016). Each county auditor shall submit
5 data on deductions applicable to the current tax year on or before
6 March 15 of each year in a manner prescribed by the department of
7 local government finance.
8 (j) A county auditor may require an individual to provide evidence
9 proving that the individual's residence is the individual's principal place
10 of residence as claimed in the certified statement filed under subsection
11 (e). The county auditor may limit the evidence that an individual is
12 required to submit to a state income tax return, a valid driver's license,
13 or a valid voter registration card showing that the residence for which
14 the deduction is claimed is the individual's principal place of residence.
15 The department of local government finance shall work with county
16 auditors to develop procedures to determine whether a property owner
17 that is claiming a standard deduction or homestead credit is not eligible
18 for the standard deduction or homestead credit because the property
19 owner's principal place of residence is outside Indiana.
20 (k) As used in this section, "homestead" includes property that
21 satisfies each of the following requirements:
22 (1) The property is located in Indiana and consists of a dwelling
23 and the real estate, not exceeding one (1) acre, that immediately
24 surrounds that dwelling.
25 (2) The property is the principal place of residence of an
26 individual.
27 (3) The property is owned by an entity that is not described in
28 subsection (a)(2)(B).
29 (4) The individual residing on the property is a shareholder,
30 partner, or member of the entity that owns the property.
31 (5) The property was eligible for the standard deduction under
32 this section on March 1, 2009.
33 (l) If a county auditor terminates a deduction for property described
34 in subsection (k) with respect to property taxes that are:
35 (1) imposed for an assessment date in 2009; and
36 (2) first due and payable in 2010;
37 on the grounds that the property is not owned by an entity described in
38 subsection (a)(2)(B), the county auditor shall reinstate the deduction if
39 the taxpayer provides proof that the property is eligible for the
40 deduction in accordance with subsection (k) and that the individual
41 residing on the property is not claiming the deduction for any other
42 property.
2023 IN 1576—LS 7175/DI 134 7
1 (m) For assessment dates after 2009, the term "homestead" includes:
2 (1) a deck or patio;
3 (2) a gazebo; or
4 (3) another residential yard structure, as defined in rules adopted
5 by the department of local government finance (other than a
6 swimming pool);
7 that is assessed as real property and attached to the dwelling.
8 (n) A county auditor shall grant an individual a deduction under this
9 section regardless of whether the individual and the individual's spouse
10 claim a deduction on two (2) different applications and each
11 application claims a deduction for different property if the property
12 owned by the individual's spouse is located outside Indiana and the
13 individual files an affidavit with the county auditor containing the
14 following information:
15 (1) The names of the county and state in which the individual's
16 spouse claims a deduction substantially similar to the deduction
17 allowed by this section.
18 (2) A statement made under penalty of perjury that the following
19 are true:
20 (A) That the individual and the individual's spouse maintain
21 separate principal places of residence.
22 (B) That neither the individual nor the individual's spouse has
23 an ownership interest in the other's principal place of
24 residence.
25 (C) That neither the individual nor the individual's spouse has,
26 for that same year, claimed a standard or substantially similar
27 deduction for any property other than the property maintained
28 as a principal place of residence by the respective individuals.
29 A county auditor may require an individual or an individual's spouse to
30 provide evidence of the accuracy of the information contained in an
31 affidavit submitted under this subsection. The evidence required of the
32 individual or the individual's spouse may include state income tax
33 returns, excise tax payment information, property tax payment
34 information, driver license information, and voter registration
35 information.
36 (o) If:
37 (1) a property owner files a statement under subsection (e) to
38 claim the deduction provided by this section for a particular
39 property; and
40 (2) the county auditor receiving the filed statement determines
41 that the property owner's property is not eligible for the deduction;
42 the county auditor shall inform the property owner of the county
2023 IN 1576—LS 7175/DI 134 8
1 auditor's determination in writing. If a property owner's property is not
2 eligible for the deduction because the county auditor has determined
3 that the property is not the property owner's principal place of
4 residence, the property owner may appeal the county auditor's
5 determination as provided in IC 6-1.1-15. The county auditor shall
6 inform the property owner of the owner's right to appeal when the
7 county auditor informs the property owner of the county auditor's
8 determination under this subsection.
9 (p) An individual is entitled to the deduction under this section for
10 a homestead for a particular assessment date if:
11 (1) either:
12 (A) the individual's interest in the homestead as described in
13 subsection (a)(2)(B) is conveyed to the individual after the
14 assessment date, but within the calendar year in which the
15 assessment date occurs; or
16 (B) the individual contracts to purchase the homestead after
17 the assessment date, but within the calendar year in which the
18 assessment date occurs;
19 (2) on the assessment date:
20 (A) the property on which the homestead is currently located
21 was vacant land; or
22 (B) the construction of the dwelling that constitutes the
23 homestead was not completed; and
24 (3) either:
25 (A) the individual files the certified statement required by
26 subsection (e); or
27 (B) a sales disclosure form that meets the requirements of
28 section 44 of this chapter is submitted to the county assessor
29 on or before December 31 of the calendar year for the
30 individual's purchase of the homestead.
31 An individual who satisfies the requirements of subdivisions (1)
32 through (3) is entitled to the deduction under this section for the
33 homestead for the assessment date, even if on the assessment date the
34 property on which the homestead is currently located was vacant land
35 or the construction of the dwelling that constitutes the homestead was
36 not completed. The county auditor shall apply the deduction for the
37 assessment date and for the assessment date in any later year in which
38 the homestead remains eligible for the deduction. A homestead that
39 qualifies for the deduction under this section as provided in this
40 subsection is considered a homestead for purposes of section 37.5 of
41 this chapter and IC 6-1.1-20.6.
42 (q) This subsection applies to an application for the deduction
2023 IN 1576—LS 7175/DI 134 9
1 provided by this section that is filed for an assessment date occurring
2 after December 31, 2013. Notwithstanding any other provision of this
3 section, an individual buying a mobile home that is not assessed as real
4 property or a manufactured home that is not assessed as real property
5 under a contract providing that the individual is to pay the property
6 taxes on the mobile home or manufactured home is not entitled to the
7 deduction provided by this section unless the parties to the contract
8 comply with IC 9-17-6-17.
9 (r) This subsection:
10 (1) applies to an application for the deduction provided by this
11 section that is filed for an assessment date occurring after
12 December 31, 2013; and
13 (2) does not apply to an individual described in subsection (q).
14 The owner of a mobile home that is not assessed as real property or a
15 manufactured home that is not assessed as real property must attach a
16 copy of the owner's title to the mobile home or manufactured home to
17 the application for the deduction provided by this section.
18 (s) For assessment dates after 2013, the term "homestead" includes
19 property that is owned by an individual who:
20 (1) is serving on active duty in any branch of the armed forces of
21 the United States;
22 (2) was ordered to transfer to a location outside Indiana; and
23 (3) was otherwise eligible, without regard to this subsection, for
24 the deduction under this section for the property for the
25 assessment date immediately preceding the transfer date specified
26 in the order described in subdivision (2).
27 For property to qualify under this subsection for the deduction provided
28 by this section, the individual described in subdivisions (1) through (3)
29 must submit to the county auditor a copy of the individual's transfer
30 orders or other information sufficient to show that the individual was
31 ordered to transfer to a location outside Indiana. The property continues
32 to qualify for the deduction provided by this section until the individual
33 ceases to be on active duty, the property is sold, or the individual's
34 ownership interest is otherwise terminated, whichever occurs first.
35 Notwithstanding subsection (a)(2), the property remains a homestead
36 regardless of whether the property continues to be the individual's
37 principal place of residence after the individual transfers to a location
38 outside Indiana. The property continues to qualify as a homestead
39 under this subsection if the property is leased while the individual is
40 away from Indiana and is serving on active duty, if the individual has
41 lived at the property at any time during the past ten (10) years.
42 Otherwise, the property ceases to qualify as a homestead under this
2023 IN 1576—LS 7175/DI 134 10
1 subsection if the property is leased while the individual is away from
2 Indiana. Property that qualifies as a homestead under this subsection
3 shall also be construed as a homestead for purposes of section 37.5 of
4 this chapter.
2023 IN 1576—LS 7175/DI 134