Introduced Version
SENATE BILL No. 90
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-49.
Synopsis: Property tax freeze for seniors. Freezes the property tax
liability on a homestead of an individual who is at least 65 years of age
and has maintained a qualified interest in the homestead for at least 10
years. Provides that a taxing unit may recover from the state general
fund 100% of the amount by which the property tax imposed on the
homestead of an individual in the usual manner exceeds the amount of
property tax billed for a calendar year to an individual whose property
tax liability is frozen under the bill's provisions. Makes an
appropriation.
Effective: January 1, 2024.
Ford J.D.
January 9, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
2023 IN 90—LS 6321/DI 129 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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SENATE BILL No. 90
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-49 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2024]:
4 Chapter 49. Property Tax Freeze on Senior Homesteads
5 Sec. 1. As used in this chapter, "base year" for an eligible
6 individual means the calendar year preceding the date on which
7 the eligible individual initially submits an application seeking a
8 determination of property tax liability under this chapter.
9 Sec. 2. As used in this chapter, "eligible individual" means an
10 individual who:
11 (1) is at least sixty-five (65) years of age; and
12 (2) has a qualified interest in a homestead on the assessment
13 date for which property tax liability is imposed.
14 Sec. 3. As used in this chapter, "homestead" has the meaning set
15 forth in IC 6-1.1-12-37.
16 Sec. 4. As used in this chapter, "property tax liability" means
17 liability for the tax imposed on property under this article
2023 IN 90—LS 6321/DI 129 2
1 determined after application of all credits and deductions under
2 this article, but does not include any interest or penalty imposed
3 under this article.
4 Sec. 5. As used in this chapter, "qualified interest" means the
5 following:
6 (1) An ownership interest in a homestead.
7 (2) An interest in a contract for the purchase of a homestead
8 that:
9 (A) is recorded in the county recorder's office; and
10 (B) provides that an individual purchasing the homestead
11 is to pay the property taxes on the homestead.
12 Sec. 6. (a) Notwithstanding any other law, the property tax
13 liability determined under this chapter for a homestead for
14 property taxes first due and payable in a calendar year is the only
15 property tax liability to which the homestead is subject for that
16 year.
17 (b) An eligible individual who on January 1 of a particular
18 calendar year after 2023 has maintained a qualified interest in a
19 homestead for at least ten (10) years is entitled for property taxes
20 first due and payable in the immediately succeeding calendar year
21 to a determination of property tax liability under this chapter.
22 Sec. 7. (a) The property tax liability of an eligible individual for
23 taxes first due and payable in a calendar year with respect to a
24 homestead is the lesser of the following:
25 (1) The amount of property tax liability of the eligible
26 individual that is attributable to the homestead for property
27 taxes first due and payable in the base year.
28 (2) The lowest property tax liability of the eligible individual
29 that is attributable to the homestead for property taxes first
30 due and payable in a calendar year that is after the base year.
31 (b) The property tax liability for a homestead determined under
32 this section for property taxes first due and payable in a calendar
33 year is considered for all purposes to be property taxes imposed by
34 the state or a political subdivision in which the homestead is
35 located.
36 Sec. 8. (a) An eligible individual who desires to have the eligible
37 individual's property tax liability determined under this chapter
38 must file a certified statement on forms prescribed by the
39 department with the auditor of the county in which the homestead
40 is located. The statement must include the parcel number or key
41 number of the homestead and the name of the city, town, or
42 township in which the homestead is located. The statement may be
2023 IN 90—LS 6321/DI 129 3
1 filed in person or by mail. If the statement is mailed, the mailing
2 must be postmarked on or before the last day for filing. To obtain
3 a determination of property tax liability for a desired calendar
4 year in which property taxes are first due and payable, the
5 statement must be completed and dated in the immediately
6 preceding calendar year and filed with the county auditor on or
7 before January 5 of the calendar year in which the property taxes
8 are first due and payable. A statement must be filed for the first
9 year and separately for each succeeding year for which the eligible
10 individual claims a determination of the eligible individual's
11 property tax liability under this chapter.
12 (b) The statement referred to in subsection (a) must:
13 (1) be verified under penalties for perjury; and
14 (2) contain the following information:
15 (A) The full name and complete residence address of the
16 eligible individual.
17 (B) Evidence that the individual is an eligible individual.
18 (C) If the eligible individual is not the sole legal or
19 equitable owner of the homestead, the exact share of the
20 eligible individual's interest in the homestead.
21 (D) Any other information that the department requires to
22 be included in the statement.
23 Sec. 9. (a) If:
24 (1) the property tax liability of an eligible individual has been
25 previously determined under this chapter; and
26 (2) the eligible individual establishes a new homestead in the
27 state;
28 the individual remains eligible for a determination of property tax
29 liability under this chapter with respect to the new homestead.
30 (b) This subsection applies to an eligible individual who
31 establishes a new homestead within the same county. An eligible
32 individual may request that the county maintain the amount of
33 property tax liability that was initially determined under this
34 chapter for the individual's prior homestead within the county for
35 the new homestead. Subject to section 7 of this chapter, the county
36 shall bill the eligible individual for the amount of property tax
37 liability attributable to the prior homestead.
38 (c) This subsection applies to an eligible individual who
39 establishes a new homestead in a different county. An eligible
40 individual may request that the:
41 (1) county in which the individual's property tax liability was
42 initially determined under this chapter notify the new county
2023 IN 90—LS 6321/DI 129 4
1 of the amount of the individual's property tax liability for the
2 prior homestead; and
3 (2) new county maintain the amount of property tax liability
4 for the prior homestead on the new homestead.
5 Subject to section 7 of this chapter, the county shall bill the eligible
6 individual for the amount of property tax liability attributable to
7 the prior homestead.
8 Sec. 10. If an eligible individual whose property tax liability is
9 determined under this chapter changes the use of the homestead so
10 that part or all of that homestead no longer qualifies for the
11 determination of property tax liability under this chapter, the
12 eligible individual must file a certified statement with the auditor
13 of the county, notifying the auditor of the change of use not later
14 than sixty (60) days after the date of that change.
15 Sec. 11. (a) The taxing unit in which an eligible individual has
16 been approved for a determination of property tax liability under
17 this chapter may recover from the state general fund one hundred
18 percent (100%) of the amount by which the property tax imposed
19 on the homestead of an eligible individual in the usual manner
20 exceeds the amount of property tax billed for a calendar year.
21 (b) A county fiscal officer that seeks compensation under this
22 section shall certify the total amount to be paid and submit a claim
23 to the treasurer of state before July 1 of the year in which an
24 eligible individual was approved for a determination of property
25 tax liability under this chapter. The treasurer of state shall pay the
26 amount due to the county fiscal officer for distribution to each
27 taxing unit in the county before October 15 of the year in which the
28 claim for compensation was submitted. There is annually
29 appropriated from the state general fund an amount sufficient to
30 pay claims for compensation under this section.
31 SECTION 2. [EFFECTIVE JANUARY 1, 2024] (a) IC 6-1.1-49, as
32 added by this act, applies only to property taxes first due and
33 payable after December 31, 2024.
34 (b) This SECTION expires January 1, 2028.
2023 IN 90—LS 6321/DI 129