Indiana 2023 Regular Session

Indiana Senate Bill SB0090 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 90
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-49.
7	7	Synopsis: Property tax freeze for seniors. Freezes the property tax
8	8	liability on a homestead of an individual who is at least 65 years of age
9	9	and has maintained a qualified interest in the homestead for at least 10
10	10	years. Provides that a taxing unit may recover from the state general
11	11	fund 100% of the amount by which the property tax imposed on the
12	12	homestead of an individual in the usual manner exceeds the amount of
13	13	property tax billed for a calendar year to an individual whose property
14	14	tax liability is frozen under the bill's provisions. Makes an
15	15	appropriation.
16	16	Effective: January 1, 2024.
17	17	Ford J.D.
18	18	January 9, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
19	19	2023 IN 90—LS 6321/DI 129 Introduced
20	20	First Regular Session of the 123rd General Assembly (2023)
21	21	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
22	22	Constitution) is being amended, the text of the existing provision will appear in this style type,
23	23	additions will appear in this style type, and deletions will appear in this style type.
24	24	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
25	25	provision adopted), the text of the new provision will appear in this style type. Also, the
26	26	word NEW will appear in that style type in the introductory clause of each SECTION that adds
27	27	a new provision to the Indiana Code or the Indiana Constitution.
28	28	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
29	29	between statutes enacted by the 2022 Regular Session of the General Assembly.
30	30	SENATE BILL No. 90
31	31	A BILL FOR AN ACT to amend the Indiana Code concerning
32	32	taxation and to make an appropriation.
33	33	Be it enacted by the General Assembly of the State of Indiana:
34	34	1 SECTION 1. IC 6-1.1-49 IS ADDED TO THE INDIANA CODE
35	35	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
36	36	3 JANUARY 1, 2024]:
37	37	4 Chapter 49. Property Tax Freeze on Senior Homesteads
38	38	5 Sec. 1. As used in this chapter, "base year" for an eligible
39	39	6 individual means the calendar year preceding the date on which
40	40	7 the eligible individual initially submits an application seeking a
41	41	8 determination of property tax liability under this chapter.
42	42	9 Sec. 2. As used in this chapter, "eligible individual" means an
43	43	10 individual who:
44	44	11 (1) is at least sixty-five (65) years of age; and
45	45	12 (2) has a qualified interest in a homestead on the assessment
46	46	13 date for which property tax liability is imposed.
47	47	14 Sec. 3. As used in this chapter, "homestead" has the meaning set
48	48	15 forth in IC 6-1.1-12-37.
49	49	16 Sec. 4. As used in this chapter, "property tax liability" means
50	50	17 liability for the tax imposed on property under this article
51	51	2023 IN 90—LS 6321/DI 129 2
52	52	1 determined after application of all credits and deductions under
53	53	2 this article, but does not include any interest or penalty imposed
54	54	3 under this article.
55	55	4 Sec. 5. As used in this chapter, "qualified interest" means the
56	56	5 following:
57	57	6 (1) An ownership interest in a homestead.
58	58	7 (2) An interest in a contract for the purchase of a homestead
59	59	8 that:
60	60	9 (A) is recorded in the county recorder's office; and
61	61	10 (B) provides that an individual purchasing the homestead
62	62	11 is to pay the property taxes on the homestead.
63	63	12 Sec. 6. (a) Notwithstanding any other law, the property tax
64	64	13 liability determined under this chapter for a homestead for
65	65	14 property taxes first due and payable in a calendar year is the only
66	66	15 property tax liability to which the homestead is subject for that
67	67	16 year.
68	68	17 (b) An eligible individual who on January 1 of a particular
69	69	18 calendar year after 2023 has maintained a qualified interest in a
70	70	19 homestead for at least ten (10) years is entitled for property taxes
71	71	20 first due and payable in the immediately succeeding calendar year
72	72	21 to a determination of property tax liability under this chapter.
73	73	22 Sec. 7. (a) The property tax liability of an eligible individual for
74	74	23 taxes first due and payable in a calendar year with respect to a
75	75	24 homestead is the lesser of the following:
76	76	25 (1) The amount of property tax liability of the eligible
77	77	26 individual that is attributable to the homestead for property
78	78	27 taxes first due and payable in the base year.
79	79	28 (2) The lowest property tax liability of the eligible individual
80	80	29 that is attributable to the homestead for property taxes first
81	81	30 due and payable in a calendar year that is after the base year.
82	82	31 (b) The property tax liability for a homestead determined under
83	83	32 this section for property taxes first due and payable in a calendar
84	84	33 year is considered for all purposes to be property taxes imposed by
85	85	34 the state or a political subdivision in which the homestead is
86	86	35 located.
87	87	36 Sec. 8. (a) An eligible individual who desires to have the eligible
88	88	37 individual's property tax liability determined under this chapter
89	89	38 must file a certified statement on forms prescribed by the
90	90	39 department with the auditor of the county in which the homestead
91	91	40 is located. The statement must include the parcel number or key
92	92	41 number of the homestead and the name of the city, town, or
93	93	42 township in which the homestead is located. The statement may be
94	94	2023 IN 90—LS 6321/DI 129 3
95	95	1 filed in person or by mail. If the statement is mailed, the mailing
96	96	2 must be postmarked on or before the last day for filing. To obtain
97	97	3 a determination of property tax liability for a desired calendar
98	98	4 year in which property taxes are first due and payable, the
99	99	5 statement must be completed and dated in the immediately
100	100	6 preceding calendar year and filed with the county auditor on or
101	101	7 before January 5 of the calendar year in which the property taxes
102	102	8 are first due and payable. A statement must be filed for the first
103	103	9 year and separately for each succeeding year for which the eligible
104	104	10 individual claims a determination of the eligible individual's
105	105	11 property tax liability under this chapter.
106	106	12 (b) The statement referred to in subsection (a) must:
107	107	13 (1) be verified under penalties for perjury; and
108	108	14 (2) contain the following information:
109	109	15 (A) The full name and complete residence address of the
110	110	16 eligible individual.
111	111	17 (B) Evidence that the individual is an eligible individual.
112	112	18 (C) If the eligible individual is not the sole legal or
113	113	19 equitable owner of the homestead, the exact share of the
114	114	20 eligible individual's interest in the homestead.
115	115	21 (D) Any other information that the department requires to
116	116	22 be included in the statement.
117	117	23 Sec. 9. (a) If:
118	118	24 (1) the property tax liability of an eligible individual has been
119	119	25 previously determined under this chapter; and
120	120	26 (2) the eligible individual establishes a new homestead in the
121	121	27 state;
122	122	28 the individual remains eligible for a determination of property tax
123	123	29 liability under this chapter with respect to the new homestead.
124	124	30 (b) This subsection applies to an eligible individual who
125	125	31 establishes a new homestead within the same county. An eligible
126	126	32 individual may request that the county maintain the amount of
127	127	33 property tax liability that was initially determined under this
128	128	34 chapter for the individual's prior homestead within the county for
129	129	35 the new homestead. Subject to section 7 of this chapter, the county
130	130	36 shall bill the eligible individual for the amount of property tax
131	131	37 liability attributable to the prior homestead.
132	132	38 (c) This subsection applies to an eligible individual who
133	133	39 establishes a new homestead in a different county. An eligible
134	134	40 individual may request that the:
135	135	41 (1) county in which the individual's property tax liability was
136	136	42 initially determined under this chapter notify the new county
137	137	2023 IN 90—LS 6321/DI 129 4
138	138	1 of the amount of the individual's property tax liability for the
139	139	2 prior homestead; and
140	140	3 (2) new county maintain the amount of property tax liability
141	141	4 for the prior homestead on the new homestead.
142	142	5 Subject to section 7 of this chapter, the county shall bill the eligible
143	143	6 individual for the amount of property tax liability attributable to
144	144	7 the prior homestead.
145	145	8 Sec. 10. If an eligible individual whose property tax liability is
146	146	9 determined under this chapter changes the use of the homestead so
147	147	10 that part or all of that homestead no longer qualifies for the
148	148	11 determination of property tax liability under this chapter, the
149	149	12 eligible individual must file a certified statement with the auditor
150	150	13 of the county, notifying the auditor of the change of use not later
151	151	14 than sixty (60) days after the date of that change.
152	152	15 Sec. 11. (a) The taxing unit in which an eligible individual has
153	153	16 been approved for a determination of property tax liability under
154	154	17 this chapter may recover from the state general fund one hundred
155	155	18 percent (100%) of the amount by which the property tax imposed
156	156	19 on the homestead of an eligible individual in the usual manner
157	157	20 exceeds the amount of property tax billed for a calendar year.
158	158	21 (b) A county fiscal officer that seeks compensation under this
159	159	22 section shall certify the total amount to be paid and submit a claim
160	160	23 to the treasurer of state before July 1 of the year in which an
161	161	24 eligible individual was approved for a determination of property
162	162	25 tax liability under this chapter. The treasurer of state shall pay the
163	163	26 amount due to the county fiscal officer for distribution to each
164	164	27 taxing unit in the county before October 15 of the year in which the
165	165	28 claim for compensation was submitted. There is annually
166	166	29 appropriated from the state general fund an amount sufficient to
167	167	30 pay claims for compensation under this section.
168	168	31 SECTION 2. [EFFECTIVE JANUARY 1, 2024] (a) IC 6-1.1-49, as
169	169	32 added by this act, applies only to property taxes first due and
170	170	33 payable after December 31, 2024.
171	171	34 (b) This SECTION expires January 1, 2028.
172	172	2023 IN 90—LS 6321/DI 129