| Old | New | Differences | |
|---|---|---|---|
| 1 | + | *ES0325.3* | |
| 2 | + | Reprinted | |
| 3 | + | April 14, 2023 | |
| 4 | + | ENGROSSED | |
| 5 | + | SENATE BILL No. 325 | |
| 6 | + | _____ | |
| 7 | + | DIGEST OF SB 325 (Updated April 13, 2023 4:59 pm - DI 92) | |
| 8 | + | Citations Affected: IC 6-1.1; noncode. | |
| 9 | + | Synopsis: Homestead standard deduction. Specifies the requirements | |
| 10 | + | and the real property improvements considered when determining | |
| 11 | + | whether property is a dwelling or a homestead for purposes of the | |
| 12 | + | standard property tax deduction law. Removes additional definitions of | |
| 13 | + | "homestead" from the statute. Specifies that for purposes of the circuit | |
| 14 | + | breaker law "nonresidential real property" refers to real property that | |
| 15 | + | is not: (1) a homestead; (2) residential property; (3) long term care | |
| 16 | + | property; or (4) agricultural land. Provides that, for assessment dates | |
| 17 | + | after December 31, 2023, "residential property" includes any other | |
| 18 | + | land, building, or residential yard structure, including a deck, patio, | |
| 19 | + | gazebo, or pool that is not attached to a dwelling that: (1) is not part of | |
| 20 | + | a homestead; and (2) is predominantly used for a residential purpose. | |
| 21 | + | Makes a conforming change. | |
| 22 | + | Effective: January 1, 2024. | |
| 23 | + | Buchanan, Gaskill, Rogers, | |
| 24 | + | Randolph Lonnie M | |
| 25 | + | (HOUSE SPONSOR — THOMPSON) | |
| 26 | + | January 12, 2023, read first time and referred to Committee on Tax and Fiscal Policy. | |
| 27 | + | February 21, 2023, amended, reported favorably — Do Pass. | |
| 28 | + | February 27, 2023, read second time, amended, ordered engrossed. | |
| 29 | + | February 28, 2023, engrossed. Read third time, passed. Yeas 41, nays 8. | |
| 30 | + | HOUSE ACTION | |
| 31 | + | March 6, 2023, read first time and referred to Committee on Ways and Means. | |
| 32 | + | April 6, 2023, amended, reported — Do Pass. | |
| 33 | + | April 11, 2023, read second time, amended, ordered engrossed. | |
| 34 | + | April 12, 2023, engrossed. Returned to second reading. | |
| 35 | + | April 13, 2023, re-read second time, amended, ordered engrossed. | |
| 36 | + | ES 325—LS 6810/DI 120 Reprinted | |
| 37 | + | April 14, 2023 | |
| 1 | 38 | First Regular Session of the 123rd General Assembly (2023) | |
| 2 | 39 | PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana | |
| 3 | 40 | Constitution) is being amended, the text of the existing provision will appear in this style type, | |
| 4 | 41 | additions will appear in this style type, and deletions will appear in this style type. | |
| 5 | 42 | Additions: Whenever a new statutory provision is being enacted (or a new constitutional | |
| 6 | 43 | provision adopted), the text of the new provision will appear in this style type. Also, the | |
| 7 | 44 | word NEW will appear in that style type in the introductory clause of each SECTION that adds | |
| 8 | 45 | a new provision to the Indiana Code or the Indiana Constitution. | |
| 9 | 46 | Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts | |
| 10 | 47 | between statutes enacted by the 2022 Regular Session of the General Assembly. | |
| 11 | - | SENATE ENROLLED ACT No. 325 | |
| 12 | - | AN ACT to amend the Indiana Code concerning taxation. | |
| 48 | + | ENGROSSED | |
| 49 | + | SENATE BILL No. 325 | |
| 50 | + | A BILL FOR AN ACT to amend the Indiana Code concerning | |
| 51 | + | taxation. | |
| 13 | 52 | Be it enacted by the General Assembly of the State of Indiana: | |
| 14 | - | SECTION 1. IC 6-1.1-12-17.8, AS AMENDED BY P.L.174-2022, | |
| 53 | + | 1 SECTION 1. IC 6-1.1-12-17.8, AS AMENDED BY P.L.174-2022, | |
| 54 | + | 2 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE | |
| 55 | + | 3 JANUARY 1, 2024]: Sec. 17.8. (a) An individual who receives a | |
| 56 | + | 4 deduction provided under section 9, 11, 13, 14, 16, 17.4 (before its | |
| 57 | + | 5 expiration), or 37 of this chapter in a particular year and who remains | |
| 58 | + | 6 eligible for the deduction in the following year is not required to file a | |
| 59 | + | 7 statement to apply for the deduction in the following year. However, for | |
| 60 | + | 8 purposes of a deduction under section 37 of this chapter, the county | |
| 61 | + | 9 auditor may, in the county auditor's discretion, terminate the deduction | |
| 62 | + | 10 for assessment dates after January 15, 2012, if the individual does not | |
| 63 | + | 11 comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January | |
| 64 | + | 12 1, 2015), as determined by the county auditor, before January 1, 2013. | |
| 65 | + | 13 Before the county auditor terminates the deduction because the | |
| 66 | + | 14 taxpayer claiming the deduction did not comply with the requirement | |
| 67 | + | 15 in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, | |
| 68 | + | 16 2013, the county auditor shall mail notice of the proposed termination | |
| 69 | + | 17 of the deduction to: | |
| 70 | + | ES 325—LS 6810/DI 120 2 | |
| 71 | + | 1 (1) the last known address of each person liable for any property | |
| 72 | + | 2 taxes or special assessment, as shown on the tax duplicate or | |
| 73 | + | 3 special assessment records; or | |
| 74 | + | 4 (2) the last known address of the most recent owner shown in the | |
| 75 | + | 5 transfer book. | |
| 76 | + | 6 (b) An individual who receives a deduction provided under section | |
| 77 | + | 7 9, 11, 13, 14, 16, or 17.4 (before its expiration) of this chapter in a | |
| 78 | + | 8 particular year and who becomes ineligible for the deduction in the | |
| 79 | + | 9 following year shall notify the auditor of the county in which the real | |
| 80 | + | 10 property, mobile home, or manufactured home for which the individual | |
| 81 | + | 11 claims the deduction is located of the individual's ineligibility in the | |
| 82 | + | 12 year in which the individual becomes ineligible. An individual who | |
| 83 | + | 13 becomes ineligible for a deduction under section 37 of this chapter | |
| 84 | + | 14 shall notify the county auditor of the county in which the property is | |
| 85 | + | 15 located in conformity with section 37 of this chapter. | |
| 86 | + | 16 (c) The auditor of each county shall, in a particular year, apply a | |
| 87 | + | 17 deduction provided under section 9, 11, 13, 14, 16, 17.4 (before its | |
| 88 | + | 18 expiration), or 37 of this chapter to each individual who received the | |
| 89 | + | 19 deduction in the preceding year unless the auditor determines that the | |
| 90 | + | 20 individual is no longer eligible for the deduction. | |
| 91 | + | 21 (d) An individual who receives a deduction provided under section | |
| 92 | + | 22 9, 11, 13, 14, 16, 17.4 (before its expiration), or 37 of this chapter for | |
| 93 | + | 23 property that is jointly held with another owner in a particular year and | |
| 94 | + | 24 remains eligible for the deduction in the following year is not required | |
| 95 | + | 25 to file a statement to reapply for the deduction following the removal | |
| 96 | + | 26 of the joint owner if: | |
| 97 | + | 27 (1) the individual is the sole owner of the property following the | |
| 98 | + | 28 death of the individual's spouse; or | |
| 99 | + | 29 (2) the individual is the sole owner of the property following the | |
| 100 | + | 30 death of a joint owner who was not the individual's spouse. | |
| 101 | + | 31 If a county auditor terminates a deduction under section 9 of this | |
| 102 | + | 32 chapter, a deduction under section 37 of this chapter, or a credit under | |
| 103 | + | 33 IC 6-1.1-20.6-8.5 after June 30, 2017, and before May 1, 2019, because | |
| 104 | + | 34 the taxpayer claiming the deduction or credit did not comply with a | |
| 105 | + | 35 requirement added to this subsection by P.L.255-2017 to reapply for | |
| 106 | + | 36 the deduction or credit, the county auditor shall reinstate the deduction | |
| 107 | + | 37 or credit if the taxpayer provides proof that the taxpayer is eligible for | |
| 108 | + | 38 the deduction or credit and is not claiming the deduction or credit for | |
| 109 | + | 39 any other property. | |
| 110 | + | 40 (e) A trust entitled to a deduction under section 9, 11, 13, 14, 16, | |
| 111 | + | 41 17.4 (before its expiration), or 37 of this chapter for real property | |
| 112 | + | 42 owned by the trust and occupied by an individual in accordance with | |
| 113 | + | ES 325—LS 6810/DI 120 3 | |
| 114 | + | 1 section 17.9 of this chapter is not required to file a statement to apply | |
| 115 | + | 2 for the deduction, if: | |
| 116 | + | 3 (1) the individual who occupies the real property receives a | |
| 117 | + | 4 deduction provided under section 9, 11, 13, 14, 16, 17.4 (before | |
| 118 | + | 5 its expiration), or 37 of this chapter in a particular year; and | |
| 119 | + | 6 (2) the trust remains eligible for the deduction in the following | |
| 120 | + | 7 year. | |
| 121 | + | 8 However, for purposes of a deduction under section 37 of this chapter, | |
| 122 | + | 9 the individuals that qualify the trust for a deduction must comply with | |
| 123 | + | 10 the requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) | |
| 124 | + | 11 before January 1, 2013. | |
| 125 | + | 12 (f) A cooperative housing corporation (as defined in 26 U.S.C. 216) | |
| 126 | + | 13 that is entitled to a deduction under section 37 of this chapter in the | |
| 127 | + | 14 immediately preceding calendar year for a homestead (as defined in | |
| 128 | + | 15 section 37 of this chapter) is not required to file a statement to apply for | |
| 129 | + | 16 the deduction for the current calendar year if the cooperative housing | |
| 130 | + | 17 corporation remains eligible for the deduction for the current calendar | |
| 131 | + | 18 year. However, the county auditor may, in the county auditor's | |
| 132 | + | 19 discretion, terminate the deduction for assessment dates after January | |
| 133 | + | 20 15, 2012, if the individual does not comply with the requirement in | |
| 134 | + | 21 IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015), as determined by the | |
| 135 | + | 22 county auditor, before January 1, 2013. Before the county auditor | |
| 136 | + | 23 terminates a deduction because the taxpayer claiming the deduction did | |
| 137 | + | 24 not comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired | |
| 138 | + | 25 January 1, 2015) before January 1, 2013, the county auditor shall mail | |
| 139 | + | 26 notice of the proposed termination of the deduction to: | |
| 140 | + | 27 (1) the last known address of each person liable for any property | |
| 141 | + | 28 taxes or special assessment, as shown on the tax duplicate or | |
| 142 | + | 29 special assessment records; or | |
| 143 | + | 30 (2) the last known address of the most recent owner shown in the | |
| 144 | + | 31 transfer book. | |
| 145 | + | 32 (g) An individual who: | |
| 146 | + | 33 (1) was eligible for a homestead credit under IC 6-1.1-20.9 | |
| 147 | + | 34 (repealed) for property taxes imposed for the March 1, 2007, or | |
| 148 | + | 35 January 15, 2008, assessment date; or | |
| 149 | + | 36 (2) would have been eligible for a homestead credit under | |
| 150 | + | 37 IC 6-1.1-20.9 (repealed) for property taxes imposed for the March | |
| 151 | + | 38 1, 2008, or January 15, 2009, assessment date if IC 6-1.1-20.9 had | |
| 152 | + | 39 not been repealed; | |
| 153 | + | 40 is not required to file a statement to apply for a deduction under section | |
| 154 | + | 41 37 of this chapter if the individual remains eligible for the deduction in | |
| 155 | + | 42 the current year. An individual who filed for a homestead credit under | |
| 156 | + | ES 325—LS 6810/DI 120 4 | |
| 157 | + | 1 IC 6-1.1-20.9 (repealed) for an assessment date after March 1, 2007 (if | |
| 158 | + | 2 the property is real property), or after January 1, 2008 (if the property | |
| 159 | + | 3 is personal property), shall be treated as an individual who has filed for | |
| 160 | + | 4 a deduction under section 37 of this chapter. However, the county | |
| 161 | + | 5 auditor may, in the county auditor's discretion, terminate the deduction | |
| 162 | + | 6 for assessment dates after January 15, 2012, if the individual does not | |
| 163 | + | 7 comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January | |
| 164 | + | 8 1, 2015), as determined by the county auditor, before January 1, 2013. | |
| 165 | + | 9 Before the county auditor terminates the deduction because the | |
| 166 | + | 10 taxpayer claiming the deduction did not comply with the requirement | |
| 167 | + | 11 in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, | |
| 168 | + | 12 2013, the county auditor shall mail notice of the proposed termination | |
| 169 | + | 13 of the deduction to the last known address of each person liable for any | |
| 170 | + | 14 property taxes or special assessment, as shown on the tax duplicate or | |
| 171 | + | 15 special assessment records, or to the last known address of the most | |
| 172 | + | 16 recent owner shown in the transfer book. | |
| 173 | + | 17 (h) If a county auditor terminates a deduction because the taxpayer | |
| 174 | + | 18 claiming the deduction did not comply with the requirement in | |
| 175 | + | 19 IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, 2013, | |
| 176 | + | 20 the county auditor shall reinstate the deduction if the taxpayer provides | |
| 177 | + | 21 proof that the taxpayer is eligible for the deduction and is not claiming | |
| 178 | + | 22 the deduction for any other property. | |
| 179 | + | 23 (i) A taxpayer described in section 37(k) of this chapter is not | |
| 180 | + | 24 required to file a statement to apply for the deduction provided by | |
| 181 | + | 25 section 37 of this chapter for a calendar year beginning after December | |
| 182 | + | 26 31, 2008, if the property owned by the taxpayer remains eligible for the | |
| 183 | + | 27 deduction for that calendar year. However, the county auditor may | |
| 184 | + | 28 terminate the deduction for assessment dates after January 15, 2012, if | |
| 185 | + | 29 the individual residing on the property owned by the taxpayer does not | |
| 186 | + | 30 comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January | |
| 187 | + | 31 1, 2015), as determined by the county auditor, before January 1, 2013. | |
| 188 | + | 32 Before the county auditor terminates a deduction because the | |
| 189 | + | 33 individual residing on the property did not comply with the | |
| 190 | + | 34 requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before | |
| 191 | + | 35 January 1, 2013, the county auditor shall mail notice of the proposed | |
| 192 | + | 36 termination of the deduction to: | |
| 193 | + | 37 (1) the last known address of each person liable for any property | |
| 194 | + | 38 taxes or special assessment, as shown on the tax duplicate or | |
| 195 | + | 39 special assessment records; or | |
| 196 | + | 40 (2) the last known address of the most recent owner shown in the | |
| 197 | + | 41 transfer book. | |
| 198 | + | 42 SECTION 2. IC 6-1.1-12-37, AS AMENDED BY P.L.174-2022, | |
| 199 | + | ES 325—LS 6810/DI 120 5 | |
| 200 | + | 1 SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE | |
| 201 | + | 2 JANUARY 1, 2024]: Sec. 37. (a) The following definitions apply | |
| 202 | + | 3 throughout this section: | |
| 203 | + | 4 (1) "Dwelling" means any of the following: | |
| 204 | + | 5 (A) Residential real property improvements that an individual | |
| 205 | + | 6 uses as the individual's residence, including a house or garage. | |
| 206 | + | 7 limited to a single house and a single garage, regardless of | |
| 207 | + | 8 whether the single garage is attached to the single house or | |
| 208 | + | 9 detached from the single house. | |
| 209 | + | 10 (B) A mobile home that is not assessed as real property that an | |
| 210 | + | 11 individual uses as the individual's residence. | |
| 211 | + | 12 (C) A manufactured home that is not assessed as real property | |
| 212 | + | 13 that an individual uses as the individual's residence. | |
| 213 | + | 14 (2) "Homestead" means an individual's principal place of | |
| 214 | + | 15 residence: | |
| 215 | + | 16 (A) that is located in Indiana; | |
| 216 | + | 17 (B) that: | |
| 217 | + | 18 (i) the individual owns; | |
| 218 | + | 19 (ii) the individual is buying under a contract recorded in the | |
| 219 | + | 20 county recorder's office, or evidenced by a memorandum of | |
| 220 | + | 21 contract recorded in the county recorder's office under | |
| 221 | + | 22 IC 36-2-11-20, that provides that the individual is to pay the | |
| 222 | + | 23 property taxes on the residence, and that obligates the owner | |
| 223 | + | 24 to convey title to the individual upon completion of all of the | |
| 224 | + | 25 individual's contract obligations; | |
| 225 | + | 26 (iii) the individual is entitled to occupy as a | |
| 226 | + | 27 tenant-stockholder (as defined in 26 U.S.C. 216) of a | |
| 227 | + | 28 cooperative housing corporation (as defined in 26 U.S.C. | |
| 228 | + | 29 216); or | |
| 229 | + | 30 (iv) is a residence described in section 17.9 of this chapter | |
| 230 | + | 31 that is owned by a trust if the individual is an individual | |
| 231 | + | 32 described in section 17.9 of this chapter; and | |
| 232 | + | 33 (C) that consists of a dwelling and the real estate, not | |
| 233 | + | 34 exceeding and includes up to one (1) acre that immediately | |
| 234 | + | 35 surrounds of land immediately surrounding that dwelling, | |
| 235 | + | 36 and any of the following improvements: | |
| 236 | + | 37 (i) Any number of decks, patios, gazebos, or pools. | |
| 237 | + | 38 (ii) One (1) additional building that is not part of the | |
| 238 | + | 39 dwelling if the building is predominantly used for a | |
| 239 | + | 40 residential purpose and is not used as an investment | |
| 240 | + | 41 property or as a rental property. | |
| 241 | + | 42 (iii) One (1) additional residential yard structure other | |
| 242 | + | ES 325—LS 6810/DI 120 6 | |
| 243 | + | 1 than a deck, patio, gazebo, or pool. | |
| 244 | + | 2 Except as provided in subsection (k), The term does not include | |
| 245 | + | 3 property owned by a corporation, partnership, limited liability | |
| 246 | + | 4 company, or other entity not described in this subdivision. | |
| 247 | + | 5 (b) Each year a homestead is eligible for a standard deduction from | |
| 248 | + | 6 the assessed value of the homestead for an assessment date. Except as | |
| 249 | + | 7 provided in subsection (p), (m), the deduction provided by this section | |
| 250 | + | 8 applies to property taxes first due and payable for an assessment date | |
| 251 | + | 9 only if an individual has an interest in the homestead described in | |
| 252 | + | 10 subsection (a)(2)(B) on: | |
| 253 | + | 11 (1) the assessment date; or | |
| 254 | + | 12 (2) any date in the same year after an assessment date that a | |
| 255 | + | 13 statement is filed under subsection (e) or section 44 of this | |
| 256 | + | 14 chapter, if the property consists of real property. | |
| 257 | + | 15 If more than one (1) individual or entity qualifies property as a | |
| 258 | + | 16 homestead under subsection (a)(2)(B) for an assessment date, only one | |
| 259 | + | 17 (1) standard deduction from the assessed value of the homestead may | |
| 260 | + | 18 be applied for the assessment date. Subject to subsection (c), the | |
| 261 | + | 19 auditor of the county shall record and make the deduction for the | |
| 262 | + | 20 individual or entity qualifying for the deduction. | |
| 263 | + | 21 (c) Except as provided in section 40.5 of this chapter, the total | |
| 264 | + | 22 amount of the deduction that a person may receive under this section | |
| 265 | + | 23 for a particular year is the lesser of: | |
| 266 | + | 24 (1) sixty percent (60%) of the assessed value of the real property, | |
| 267 | + | 25 mobile home not assessed as real property, or manufactured home | |
| 268 | + | 26 not assessed as real property; or | |
| 269 | + | 27 (2) for assessment dates: | |
| 270 | + | 28 (A) before January 1, 2023, forty-five thousand dollars | |
| 271 | + | 29 ($45,000); or | |
| 272 | + | 30 (B) after December 31, 2022, forty-eight thousand dollars | |
| 273 | + | 31 ($48,000). | |
| 274 | + | 32 (d) A person who has sold real property, a mobile home not assessed | |
| 275 | + | 33 as real property, or a manufactured home not assessed as real property | |
| 276 | + | 34 to another person under a contract that provides that the contract buyer | |
| 277 | + | 35 is to pay the property taxes on the real property, mobile home, or | |
| 278 | + | 36 manufactured home may not claim the deduction provided under this | |
| 279 | + | 37 section with respect to that real property, mobile home, or | |
| 280 | + | 38 manufactured home. | |
| 281 | + | 39 (e) Except as provided in sections 17.8 and 44 of this chapter and | |
| 282 | + | 40 subject to section 45 of this chapter, an individual who desires to claim | |
| 283 | + | 41 the deduction provided by this section must file a certified statement on | |
| 284 | + | 42 forms prescribed by the department of local government finance, with | |
| 285 | + | ES 325—LS 6810/DI 120 7 | |
| 286 | + | 1 the auditor of the county in which the homestead is located. The | |
| 287 | + | 2 statement must include: | |
| 288 | + | 3 (1) the parcel number or key number of the property and the name | |
| 289 | + | 4 of the city, town, or township in which the property is located; | |
| 290 | + | 5 (2) the name of any other location in which the applicant or the | |
| 291 | + | 6 applicant's spouse owns, is buying, or has a beneficial interest in | |
| 292 | + | 7 residential real property; | |
| 293 | + | 8 (3) the names of: | |
| 294 | + | 9 (A) the applicant and the applicant's spouse (if any): | |
| 295 | + | 10 (i) as the names appear in the records of the United States | |
| 296 | + | 11 Social Security Administration for the purposes of the | |
| 297 | + | 12 issuance of a Social Security card and Social Security | |
| 298 | + | 13 number; or | |
| 299 | + | 14 (ii) that they use as their legal names when they sign their | |
| 300 | + | 15 names on legal documents; | |
| 301 | + | 16 if the applicant is an individual; or | |
| 302 | + | 17 (B) each individual who qualifies property as a homestead | |
| 303 | + | 18 under subsection (a)(2)(B) and the individual's spouse (if any): | |
| 304 | + | 19 (i) as the names appear in the records of the United States | |
| 305 | + | 20 Social Security Administration for the purposes of the | |
| 306 | + | 21 issuance of a Social Security card and Social Security | |
| 307 | + | 22 number; or | |
| 308 | + | 23 (ii) that they use as their legal names when they sign their | |
| 309 | + | 24 names on legal documents; | |
| 310 | + | 25 if the applicant is not an individual; and | |
| 311 | + | 26 (4) either: | |
| 312 | + | 27 (A) the last five (5) digits of the applicant's Social Security | |
| 313 | + | 28 number and the last five (5) digits of the Social Security | |
| 314 | + | 29 number of the applicant's spouse (if any); or | |
| 315 | + | 30 (B) if the applicant or the applicant's spouse (if any) does not | |
| 316 | + | 31 have a Social Security number, any of the following for that | |
| 317 | + | 32 individual: | |
| 318 | + | 33 (i) The last five (5) digits of the individual's driver's license | |
| 319 | + | 34 number. | |
| 320 | + | 35 (ii) The last five (5) digits of the individual's state | |
| 321 | + | 36 identification card number. | |
| 322 | + | 37 (iii) The last five (5) digits of a preparer tax identification | |
| 323 | + | 38 number that is obtained by the individual through the | |
| 324 | + | 39 Internal Revenue Service of the United States. | |
| 325 | + | 40 (iv) If the individual does not have a driver's license, a state | |
| 326 | + | 41 identification card, or an Internal Revenue Service preparer | |
| 327 | + | 42 tax identification number, the last five (5) digits of a control | |
| 328 | + | ES 325—LS 6810/DI 120 8 | |
| 329 | + | 1 number that is on a document issued to the individual by the | |
| 330 | + | 2 United States government. | |
| 331 | + | 3 If a form or statement provided to the county auditor under this section, | |
| 332 | + | 4 IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or | |
| 333 | + | 5 part or all of the Social Security number of a party or other number | |
| 334 | + | 6 described in subdivision (4)(B) of a party, the telephone number and | |
| 335 | + | 7 the Social Security number or other number described in subdivision | |
| 336 | + | 8 (4)(B) included are confidential. The statement may be filed in person | |
| 337 | + | 9 or by mail. If the statement is mailed, the mailing must be postmarked | |
| 338 | + | 10 on or before the last day for filing. The statement applies for that first | |
| 339 | + | 11 year and any succeeding year for which the deduction is allowed. To | |
| 340 | + | 12 obtain the deduction for a desired calendar year in which property taxes | |
| 341 | + | 13 are first due and payable, the statement must be completed and dated | |
| 342 | + | 14 in the immediately preceding calendar year and filed with the county | |
| 343 | + | 15 auditor on or before January 5 of the calendar year in which the | |
| 344 | + | 16 property taxes are first due and payable. | |
| 345 | + | 17 (f) Except as provided in subsection (n), (k), if a person who is | |
| 346 | + | 18 receiving, or seeks to receive, the deduction provided by this section in | |
| 347 | + | 19 the person's name: | |
| 348 | + | 20 (1) changes the use of the individual's property so that part or all | |
| 349 | + | 21 of the property no longer qualifies for the deduction under this | |
| 350 | + | 22 section; or | |
| 351 | + | 23 (2) is not eligible for a deduction under this section because the | |
| 352 | + | 24 person is already receiving: | |
| 353 | + | 25 (A) a deduction under this section in the person's name as an | |
| 354 | + | 26 individual or a spouse; or | |
| 355 | + | 27 (B) a deduction under the law of another state that is | |
| 356 | + | 28 equivalent to the deduction provided by this section; | |
| 357 | + | 29 the person must file a certified statement with the auditor of the county, | |
| 358 | + | 30 notifying the auditor of the person's ineligibility, not more than sixty | |
| 359 | + | 31 (60) days after the date of the change in eligibility. A person who fails | |
| 360 | + | 32 to file the statement required by this subsection may, under | |
| 361 | + | 33 IC 6-1.1-36-17, be liable for any additional taxes that would have been | |
| 362 | + | 34 due on the property if the person had filed the statement as required by | |
| 363 | + | 35 this subsection plus a civil penalty equal to ten percent (10%) of the | |
| 364 | + | 36 additional taxes due. The civil penalty imposed under this subsection | |
| 365 | + | 37 is in addition to any interest and penalties for a delinquent payment that | |
| 366 | + | 38 might otherwise be due. One percent (1%) of the total civil penalty | |
| 367 | + | 39 collected under this subsection shall be transferred by the county to the | |
| 368 | + | 40 department of local government finance for use by the department in | |
| 369 | + | 41 establishing and maintaining the homestead property data base under | |
| 370 | + | 42 subsection (i) and, to the extent there is money remaining, for any other | |
| 371 | + | ES 325—LS 6810/DI 120 9 | |
| 372 | + | 1 purposes of the department. This amount becomes part of the property | |
| 373 | + | 2 tax liability for purposes of this article. | |
| 374 | + | 3 (g) The department of local government finance may adopt rules or | |
| 375 | + | 4 guidelines concerning the application for a deduction under this | |
| 376 | + | 5 section. | |
| 377 | + | 6 (h) This subsection does not apply to property in the first year for | |
| 378 | + | 7 which a deduction is claimed under this section if the sole reason that | |
| 379 | + | 8 a deduction is claimed on other property is that the individual or | |
| 380 | + | 9 married couple maintained a principal residence at the other property | |
| 381 | + | 10 on the assessment date in the same year in which an application for a | |
| 382 | + | 11 deduction is filed under this section or, if the application is for a | |
| 383 | + | 12 homestead that is assessed as personal property, on the assessment date | |
| 384 | + | 13 in the immediately preceding year and the individual or married couple | |
| 385 | + | 14 is moving the individual's or married couple's principal residence to the | |
| 386 | + | 15 property that is the subject of the application. Except as provided in | |
| 387 | + | 16 subsection (n), (k), the county auditor may not grant an individual or | |
| 388 | + | 17 a married couple a deduction under this section if: | |
| 389 | + | 18 (1) the individual or married couple, for the same year, claims the | |
| 390 | + | 19 deduction on two (2) or more different applications for the | |
| 391 | + | 20 deduction; and | |
| 392 | + | 21 (2) the applications claim the deduction for different property. | |
| 393 | + | 22 (i) The department of local government finance shall provide secure | |
| 394 | + | 23 access to county auditors to a homestead property data base that | |
| 395 | + | 24 includes access to the homestead owner's name and the numbers | |
| 396 | + | 25 required from the homestead owner under subsection (e)(4) for the sole | |
| 397 | + | 26 purpose of verifying whether an owner is wrongly claiming a deduction | |
| 398 | + | 27 under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or | |
| 399 | + | 28 IC 6-3.6-5 (after December 31, 2016). Each county auditor shall submit | |
| 400 | + | 29 data on deductions applicable to the current tax year on or before | |
| 401 | + | 30 March 15 of each year in a manner prescribed by the department of | |
| 402 | + | 31 local government finance. | |
| 403 | + | 32 (j) A county auditor may require an individual to provide evidence | |
| 404 | + | 33 proving that the individual's residence is the individual's principal place | |
| 405 | + | 34 of residence as claimed in the certified statement filed under subsection | |
| 406 | + | 35 (e). The county auditor may limit the evidence that an individual is | |
| 407 | + | 36 required to submit to a state income tax return, a valid driver's license, | |
| 408 | + | 37 or a valid voter registration card showing that the residence for which | |
| 409 | + | 38 the deduction is claimed is the individual's principal place of residence. | |
| 410 | + | 39 The department of local government finance shall work with county | |
| 411 | + | 40 auditors to develop procedures to determine whether a property owner | |
| 412 | + | 41 that is claiming a standard deduction or homestead credit is not eligible | |
| 413 | + | 42 for the standard deduction or homestead credit because the property | |
| 414 | + | ES 325—LS 6810/DI 120 10 | |
| 415 | + | 1 owner's principal place of residence is outside Indiana. | |
| 416 | + | 2 (k) As used in this section, "homestead" includes property that | |
| 417 | + | 3 satisfies each of the following requirements: | |
| 418 | + | 4 (1) The property is located in Indiana and consists of a dwelling | |
| 419 | + | 5 and the real estate, not exceeding one (1) acre, that immediately | |
| 420 | + | 6 surrounds that dwelling. | |
| 421 | + | 7 (2) The property is the principal place of residence of an | |
| 422 | + | 8 individual. | |
| 423 | + | 9 (3) The property is owned by an entity that is not described in | |
| 424 | + | 10 subsection (a)(2)(B). | |
| 425 | + | 11 (4) The individual residing on the property is a shareholder, | |
| 426 | + | 12 partner, or member of the entity that owns the property. | |
| 427 | + | 13 (5) The property was eligible for the standard deduction under | |
| 428 | + | 14 this section on March 1, 2009. | |
| 429 | + | 15 (l) If a county auditor terminates a deduction for property described | |
| 430 | + | 16 in subsection (k) with respect to property taxes that are: | |
| 431 | + | 17 (1) imposed for an assessment date in 2009; and | |
| 432 | + | 18 (2) first due and payable in 2010; | |
| 433 | + | 19 on the grounds that the property is not owned by an entity described in | |
| 434 | + | 20 subsection (a)(2)(B), the county auditor shall reinstate the deduction if | |
| 435 | + | 21 the taxpayer provides proof that the property is eligible for the | |
| 436 | + | 22 deduction in accordance with subsection (k) and that the individual | |
| 437 | + | 23 residing on the property is not claiming the deduction for any other | |
| 438 | + | 24 property. | |
| 439 | + | 25 (m) For assessment dates after 2009, the term "homestead" includes: | |
| 440 | + | 26 (1) a deck or patio; | |
| 441 | + | 27 (2) a gazebo; or | |
| 442 | + | 28 (3) another residential yard structure, as defined in rules adopted | |
| 443 | + | 29 by the department of local government finance (other than a | |
| 444 | + | 30 swimming pool); | |
| 445 | + | 31 that is assessed as real property and attached to the dwelling. | |
| 446 | + | 32 (n) (k) A county auditor shall grant an individual a deduction under | |
| 447 | + | 33 this section regardless of whether the individual and the individual's | |
| 448 | + | 34 spouse claim a deduction on two (2) different applications and each | |
| 449 | + | 35 application claims a deduction for different property if the property | |
| 450 | + | 36 owned by the individual's spouse is located outside Indiana and the | |
| 451 | + | 37 individual files an affidavit with the county auditor containing the | |
| 452 | + | 38 following information: | |
| 453 | + | 39 (1) The names of the county and state in which the individual's | |
| 454 | + | 40 spouse claims a deduction substantially similar to the deduction | |
| 455 | + | 41 allowed by this section. | |
| 456 | + | 42 (2) A statement made under penalty of perjury that the following | |
| 457 | + | ES 325—LS 6810/DI 120 11 | |
| 458 | + | 1 are true: | |
| 459 | + | 2 (A) That the individual and the individual's spouse maintain | |
| 460 | + | 3 separate principal places of residence. | |
| 461 | + | 4 (B) That neither the individual nor the individual's spouse has | |
| 462 | + | 5 an ownership interest in the other's principal place of | |
| 463 | + | 6 residence. | |
| 464 | + | 7 (C) That neither the individual nor the individual's spouse has, | |
| 465 | + | 8 for that same year, claimed a standard or substantially similar | |
| 466 | + | 9 deduction for any property other than the property maintained | |
| 467 | + | 10 as a principal place of residence by the respective individuals. | |
| 468 | + | 11 A county auditor may require an individual or an individual's spouse to | |
| 469 | + | 12 provide evidence of the accuracy of the information contained in an | |
| 470 | + | 13 affidavit submitted under this subsection. The evidence required of the | |
| 471 | + | 14 individual or the individual's spouse may include state income tax | |
| 472 | + | 15 returns, excise tax payment information, property tax payment | |
| 473 | + | 16 information, driver license information, and voter registration | |
| 474 | + | 17 information. | |
| 475 | + | 18 (o) (l) If: | |
| 476 | + | 19 (1) a property owner files a statement under subsection (e) to | |
| 477 | + | 20 claim the deduction provided by this section for a particular | |
| 478 | + | 21 property; and | |
| 479 | + | 22 (2) the county auditor receiving the filed statement determines | |
| 480 | + | 23 that the property owner's property is not eligible for the deduction; | |
| 481 | + | 24 the county auditor shall inform the property owner of the county | |
| 482 | + | 25 auditor's determination in writing. If a property owner's property is not | |
| 483 | + | 26 eligible for the deduction because the county auditor has determined | |
| 484 | + | 27 that the property is not the property owner's principal place of | |
| 485 | + | 28 residence, the property owner may appeal the county auditor's | |
| 486 | + | 29 determination as provided in IC 6-1.1-15. The county auditor shall | |
| 487 | + | 30 inform the property owner of the owner's right to appeal when the | |
| 488 | + | 31 county auditor informs the property owner of the county auditor's | |
| 489 | + | 32 determination under this subsection. | |
| 490 | + | 33 (p) (m) An individual is entitled to the deduction under this section | |
| 491 | + | 34 for a homestead for a particular assessment date if: | |
| 492 | + | 35 (1) either: | |
| 493 | + | 36 (A) the individual's interest in the homestead as described in | |
| 494 | + | 37 subsection (a)(2)(B) is conveyed to the individual after the | |
| 495 | + | 38 assessment date, but within the calendar year in which the | |
| 496 | + | 39 assessment date occurs; or | |
| 497 | + | 40 (B) the individual contracts to purchase the homestead after | |
| 498 | + | 41 the assessment date, but within the calendar year in which the | |
| 499 | + | 42 assessment date occurs; | |
| 500 | + | ES 325—LS 6810/DI 120 12 | |
| 501 | + | 1 (2) on the assessment date: | |
| 502 | + | 2 (A) the property on which the homestead is currently located | |
| 503 | + | 3 was vacant land; or | |
| 504 | + | 4 (B) the construction of the dwelling that constitutes the | |
| 505 | + | 5 homestead was not completed; and | |
| 506 | + | 6 (3) either: | |
| 507 | + | 7 (A) the individual files the certified statement required by | |
| 508 | + | 8 subsection (e); or | |
| 509 | + | 9 (B) a sales disclosure form that meets the requirements of | |
| 510 | + | 10 section 44 of this chapter is submitted to the county assessor | |
| 511 | + | 11 on or before December 31 of the calendar year for the | |
| 512 | + | 12 individual's purchase of the homestead. | |
| 513 | + | 13 An individual who satisfies the requirements of subdivisions (1) | |
| 514 | + | 14 through (3) is entitled to the deduction under this section for the | |
| 515 | + | 15 homestead for the assessment date, even if on the assessment date the | |
| 516 | + | 16 property on which the homestead is currently located was vacant land | |
| 517 | + | 17 or the construction of the dwelling that constitutes the homestead was | |
| 518 | + | 18 not completed. The county auditor shall apply the deduction for the | |
| 519 | + | 19 assessment date and for the assessment date in any later year in which | |
| 520 | + | 20 the homestead remains eligible for the deduction. A homestead that | |
| 521 | + | 21 qualifies for the deduction under this section as provided in this | |
| 522 | + | 22 subsection is considered a homestead for purposes of section 37.5 of | |
| 523 | + | 23 this chapter and IC 6-1.1-20.6. | |
| 524 | + | 24 (q) (n) This subsection applies to an application for the deduction | |
| 525 | + | 25 provided by this section that is filed for an assessment date occurring | |
| 526 | + | 26 after December 31, 2013. Notwithstanding any other provision of this | |
| 527 | + | 27 section, an individual buying a mobile home that is not assessed as real | |
| 528 | + | 28 property or a manufactured home that is not assessed as real property | |
| 529 | + | 29 under a contract providing that the individual is to pay the property | |
| 530 | + | 30 taxes on the mobile home or manufactured home is not entitled to the | |
| 531 | + | 31 deduction provided by this section unless the parties to the contract | |
| 532 | + | 32 comply with IC 9-17-6-17. | |
| 533 | + | 33 (r) (o) This subsection: | |
| 534 | + | 34 (1) applies to an application for the deduction provided by this | |
| 535 | + | 35 section that is filed for an assessment date occurring after | |
| 536 | + | 36 December 31, 2013; and | |
| 537 | + | 37 (2) does not apply to an individual described in subsection (q). | |
| 538 | + | 38 (n). | |
| 539 | + | 39 The owner of a mobile home that is not assessed as real property or a | |
| 540 | + | 40 manufactured home that is not assessed as real property must attach a | |
| 541 | + | 41 copy of the owner's title to the mobile home or manufactured home to | |
| 542 | + | 42 the application for the deduction provided by this section. | |
| 543 | + | ES 325—LS 6810/DI 120 13 | |
| 544 | + | 1 (s) (p) For assessment dates after 2013, the term "homestead" | |
| 545 | + | 2 includes property that is owned by an individual who: | |
| 546 | + | 3 (1) is serving on active duty in any branch of the armed forces of | |
| 547 | + | 4 the United States; | |
| 548 | + | 5 (2) was ordered to transfer to a location outside Indiana; and | |
| 549 | + | 6 (3) was otherwise eligible, without regard to this subsection, for | |
| 550 | + | 7 the deduction under this section for the property for the | |
| 551 | + | 8 assessment date immediately preceding the transfer date specified | |
| 552 | + | 9 in the order described in subdivision (2). | |
| 553 | + | 10 For property to qualify under this subsection for the deduction provided | |
| 554 | + | 11 by this section, the individual described in subdivisions (1) through (3) | |
| 555 | + | 12 must submit to the county auditor a copy of the individual's transfer | |
| 556 | + | 13 orders or other information sufficient to show that the individual was | |
| 557 | + | 14 ordered to transfer to a location outside Indiana. The property continues | |
| 558 | + | 15 to qualify for the deduction provided by this section until the individual | |
| 559 | + | 16 ceases to be on active duty, the property is sold, or the individual's | |
| 560 | + | 17 ownership interest is otherwise terminated, whichever occurs first. | |
| 561 | + | 18 Notwithstanding subsection (a)(2), the property remains a homestead | |
| 562 | + | 19 regardless of whether the property continues to be the individual's | |
| 563 | + | 20 principal place of residence after the individual transfers to a location | |
| 564 | + | 21 outside Indiana. The property continues to qualify as a homestead | |
| 565 | + | 22 under this subsection if the property is leased while the individual is | |
| 566 | + | 23 away from Indiana and is serving on active duty, if the individual has | |
| 567 | + | 24 lived at the property at any time during the past ten (10) years. | |
| 568 | + | 25 Otherwise, the property ceases to qualify as a homestead under this | |
| 569 | + | 26 subsection if the property is leased while the individual is away from | |
| 570 | + | 27 Indiana. Property that qualifies as a homestead under this subsection | |
| 571 | + | 28 shall also be construed as a homestead for purposes of section 37.5 of | |
| 572 | + | 29 this chapter. | |
| 573 | + | 30 SECTION 3. IC 6-1.1-20.6-2.5, AS ADDED BY P.L.146-2008, | |
| 574 | + | 31 SECTION 218, IS AMENDED TO READ AS FOLLOWS | |
| 575 | + | 32 [EFFECTIVE JANUARY 1, 2024]: Sec. 2.5. (a) As used in this | |
| 576 | + | 33 chapter, "nonresidential real property" refers to either of the following: | |
| 577 | + | 34 (1) real property that | |
| 578 | + | 35 (A) is not: | |
| 579 | + | 36 (i) (1) a homestead; or | |
| 580 | + | 37 (ii) (2) residential property; and | |
| 581 | + | 38 (3) long term care property; or | |
| 582 | + | 39 (4) agricultural land. | |
| 583 | + | 40 (B) consists of: | |
| 584 | + | 41 (i) a building or other land improvement; and | |
| 585 | + | 42 (ii) the land, not exceeding the area of the building footprint | |
| 586 | + | ES 325—LS 6810/DI 120 14 | |
| 587 | + | 1 or improvement footprint, on which the building or | |
| 588 | + | 2 improvement is located. | |
| 589 | + | 3 (2) Undeveloped land in the amount of the remainder of: | |
| 590 | + | 4 (A) the area of a parcel; minus | |
| 591 | + | 5 (B) the area of the parcel that is part of: | |
| 592 | + | 6 (i) a homestead; or | |
| 593 | + | 7 (ii) residential property. | |
| 594 | + | 8 (b) The term does not include agricultural land. | |
| 595 | + | 9 SECTION 4. IC 6-1.1-20.6-4, AS AMENDED BY P.L.166-2014, | |
| 596 | + | 10 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE | |
| 597 | + | 11 JANUARY 1, 2024]: Sec. 4. As used in this chapter, "residential | |
| 598 | + | 12 property" refers to real property that consists of any of the following: | |
| 599 | + | 13 (1) A single family dwelling that is not part of a homestead and | |
| 600 | + | 14 the land not exceeding one (1) acre, on which the dwelling is | |
| 601 | + | 15 located. | |
| 602 | + | 16 (2) Real property that consists of: | |
| 603 | + | 17 (A) a building that includes two (2) or more dwelling units; | |
| 604 | + | 18 (B) any common areas shared by the dwelling units (including | |
| 605 | + | 19 any land that is a common area, as described in section | |
| 606 | + | 20 1.2(b)(2) of this chapter); and | |
| 607 | + | 21 (C) the land on which the building is located. | |
| 608 | + | 22 (3) Land rented or leased for the placement of a manufactured | |
| 609 | + | 23 home or mobile home, including any common areas shared by the | |
| 610 | + | 24 manufactured homes or mobile homes. | |
| 611 | + | 25 (4) For assessment dates after December 31, 2023, any other | |
| 612 | + | 26 land, building, or residential yard structure including a deck, | |
| 613 | + | 27 patio, gazebo, or pool that: | |
| 614 | + | 28 (A) is not part of a homestead; and | |
| 615 | + | 29 (B) is predominantly used for a residential purpose. | |
| 616 | + | 30 The term includes a single family dwelling that is under construction | |
| 617 | + | 31 and the land not exceeding one (1) acre, on which the dwelling will be | |
| 618 | + | 32 located. The term does not include real property that consists of a | |
| 619 | + | 33 commercial hotel, motel, inn, tourist camp, or tourist cabin. | |
| 620 | + | 34 SECTION 5. [EFFECTIVE JANUARY 1, 2024] (a) | |
| 621 | + | 35 IC 6-1.1-12-17.8, IC 6-1.1-12-37, IC 6-1.1-20.6-2.5, and | |
| 622 | + | 36 IC 6-1.1-20.6-4, all as amended by this act, apply to assessment | |
| 623 | + | 37 dates after December 31, 2023. | |
| 624 | + | 38 (b) This SECTION expires July 1, 2027. | |
| 625 | + | ES 325—LS 6810/DI 120 15 | |
| 626 | + | COMMITTEE REPORT | |
| 627 | + | Madam President: The Senate Committee on Tax and Fiscal Policy, | |
| 628 | + | to which was referred Senate Bill No. 325, has had the same under | |
| 629 | + | consideration and begs leave to report the same back to the Senate with | |
| 630 | + | the recommendation that said bill be AMENDED as follows: | |
| 631 | + | Replace the effective date in SECTION 1 with "[EFFECTIVE | |
| 632 | + | JANUARY 1, 2024]". | |
| 633 | + | Page 1, line 7, reset in roman "including". | |
| 634 | + | Page 1, line 7, delete "limited to". | |
| 635 | + | Page 1, line 7, delete "single". | |
| 636 | + | Page 1, line 8, reset in roman "or". | |
| 637 | + | Page 1, line 8, delete "and a single". | |
| 638 | + | Page 2, line 15, after "that" insert ": | |
| 639 | + | (i)". | |
| 640 | + | Page 2, line 17, delete "." and insert "; and". | |
| 641 | + | Page 2, between lines 17 and 18, begin a new line triple block | |
| 642 | + | indented and insert: | |
| 643 | + | "(ii) includes a building located on the real estate, not | |
| 644 | + | exceeding one (1) acre, that is used for any residential | |
| 645 | + | purpose (regardless of whether the building is connected | |
| 646 | + | to the residence) but does not include a building used for | |
| 647 | + | business and commercial purposes.". | |
| 648 | + | Page 10, delete lines 3 through 42, begin a new paragraph and | |
| 649 | + | insert: | |
| 650 | + | "SECTION 2. [EFFECTIVE JANUARY 1, 2024] (a) | |
| 651 | + | IC 6-1.1-12-37, as amended by this act, applies to assessment dates | |
| 652 | + | after December 31, 2023. | |
| 653 | + | (b) This SECTION expires July 1, 2027.". | |
| 654 | + | Delete pages 11 through 12. | |
| 655 | + | Renumber all SECTIONS consecutively. | |
| 656 | + | and when so amended that said bill do pass. | |
| 657 | + | (Reference is to SB 325 as introduced.) | |
| 658 | + | HOLDMAN, Chairperson | |
| 659 | + | Committee Vote: Yeas 12, Nays 1. | |
| 660 | + | ES 325—LS 6810/DI 120 16 | |
| 661 | + | SENATE MOTION | |
| 662 | + | Madam President: I move that Senate Bill 325 be amended to read | |
| 663 | + | as follows: | |
| 664 | + | Page 2, line 17, delete "a building" and insert "an improvement". | |
| 665 | + | Page 2, line 19, delete "the building" and insert "the improvement". | |
| 666 | + | Page 2, line 20, delete "a building" and insert "an improvement". | |
| 667 | + | Page 4, line 3, strike "and". | |
| 668 | + | Page 4, line 22, delete "." and insert "; and". | |
| 669 | + | Page 4, between lines 22 and 23, begin a new line block indented | |
| 670 | + | and insert: | |
| 671 | + | "(5) if a homestead includes an improvement under subsection | |
| 672 | + | (a)(2)(C)(ii) within the homestead boundary (not exceeding | |
| 673 | + | one (1) acre), the following: | |
| 674 | + | (A) The location of the improvement within the homestead | |
| 675 | + | boundary. | |
| 676 | + | (B) A certification that the improvement is not used for | |
| 677 | + | business or commercial purposes. | |
| 678 | + | (C) If the homestead includes more than one (1) | |
| 679 | + | improvement under subsection (a)(2)(C)(ii) within the | |
| 680 | + | homestead boundary, a statement identifying which of the | |
| 681 | + | improvements the individual wishes to claim as part of the | |
| 682 | + | individual's homestead.". | |
| 683 | + | (Reference is to SB 325 as printed February 22, 2023.) | |
| 684 | + | BUCHANAN | |
| 685 | + | _____ | |
| 686 | + | COMMITTEE REPORT | |
| 687 | + | Mr. Speaker: Your Committee on Ways and Means, to which was | |
| 688 | + | referred Senate Bill 325, has had the same under consideration and | |
| 689 | + | begs leave to report the same back to the House with the | |
| 690 | + | recommendation that said bill be amended as follows: | |
| 691 | + | Page 1, delete lines 1 through 17, begin a new paragraph and insert: | |
| 692 | + | "SECTION 1. IC 6-1.1-12-17.8, AS AMENDED BY P.L.174-2022, | |
| 15 | 693 | SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE | |
| 16 | 694 | JANUARY 1, 2024]: Sec. 17.8. (a) An individual who receives a | |
| 17 | 695 | deduction provided under section 9, 11, 13, 14, 16, 17.4 (before its | |
| 18 | 696 | expiration), or 37 of this chapter in a particular year and who remains | |
| 19 | 697 | eligible for the deduction in the following year is not required to file a | |
| 20 | 698 | statement to apply for the deduction in the following year. However, for | |
| 699 | + | ES 325—LS 6810/DI 120 17 | |
| 21 | 700 | purposes of a deduction under section 37 of this chapter, the county | |
| 22 | 701 | auditor may, in the county auditor's discretion, terminate the deduction | |
| 23 | 702 | for assessment dates after January 15, 2012, if the individual does not | |
| 24 | 703 | comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January | |
| 25 | 704 | 1, 2015), as determined by the county auditor, before January 1, 2013. | |
| 26 | 705 | Before the county auditor terminates the deduction because the | |
| 27 | 706 | taxpayer claiming the deduction did not comply with the requirement | |
| 28 | 707 | in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, | |
| 29 | 708 | 2013, the county auditor shall mail notice of the proposed termination | |
| 30 | 709 | of the deduction to: | |
| 31 | 710 | (1) the last known address of each person liable for any property | |
| 32 | 711 | taxes or special assessment, as shown on the tax duplicate or | |
| 33 | 712 | special assessment records; or | |
| 34 | 713 | (2) the last known address of the most recent owner shown in the | |
| 35 | 714 | transfer book. | |
| 36 | - | SEA 325 — Concur 2 | |
| 37 | 715 | (b) An individual who receives a deduction provided under section | |
| 38 | 716 | 9, 11, 13, 14, 16, or 17.4 (before its expiration) of this chapter in a | |
| 39 | 717 | particular year and who becomes ineligible for the deduction in the | |
| 40 | 718 | following year shall notify the auditor of the county in which the real | |
| 41 | 719 | property, mobile home, or manufactured home for which the individual | |
| 42 | 720 | claims the deduction is located of the individual's ineligibility in the | |
| 43 | 721 | year in which the individual becomes ineligible. An individual who | |
| 44 | 722 | becomes ineligible for a deduction under section 37 of this chapter | |
| 45 | 723 | shall notify the county auditor of the county in which the property is | |
| 46 | 724 | located in conformity with section 37 of this chapter. | |
| 47 | 725 | (c) The auditor of each county shall, in a particular year, apply a | |
| 48 | 726 | deduction provided under section 9, 11, 13, 14, 16, 17.4 (before its | |
| 49 | 727 | expiration), or 37 of this chapter to each individual who received the | |
| 50 | 728 | deduction in the preceding year unless the auditor determines that the | |
| 51 | 729 | individual is no longer eligible for the deduction. | |
| 52 | 730 | (d) An individual who receives a deduction provided under section | |
| 53 | 731 | 9, 11, 13, 14, 16, 17.4 (before its expiration), or 37 of this chapter for | |
| 54 | 732 | property that is jointly held with another owner in a particular year and | |
| 55 | 733 | remains eligible for the deduction in the following year is not required | |
| 56 | 734 | to file a statement to reapply for the deduction following the removal | |
| 57 | 735 | of the joint owner if: | |
| 58 | 736 | (1) the individual is the sole owner of the property following the | |
| 59 | 737 | death of the individual's spouse; or | |
| 60 | 738 | (2) the individual is the sole owner of the property following the | |
| 61 | 739 | death of a joint owner who was not the individual's spouse. | |
| 62 | 740 | If a county auditor terminates a deduction under section 9 of this | |
| 63 | 741 | chapter, a deduction under section 37 of this chapter, or a credit under | |
| 742 | + | ES 325—LS 6810/DI 120 18 | |
| 64 | 743 | IC 6-1.1-20.6-8.5 after June 30, 2017, and before May 1, 2019, because | |
| 65 | 744 | the taxpayer claiming the deduction or credit did not comply with a | |
| 66 | 745 | requirement added to this subsection by P.L.255-2017 to reapply for | |
| 67 | 746 | the deduction or credit, the county auditor shall reinstate the deduction | |
| 68 | 747 | or credit if the taxpayer provides proof that the taxpayer is eligible for | |
| 69 | 748 | the deduction or credit and is not claiming the deduction or credit for | |
| 70 | 749 | any other property. | |
| 71 | 750 | (e) A trust entitled to a deduction under section 9, 11, 13, 14, 16, | |
| 72 | 751 | 17.4 (before its expiration), or 37 of this chapter for real property | |
| 73 | 752 | owned by the trust and occupied by an individual in accordance with | |
| 74 | 753 | section 17.9 of this chapter is not required to file a statement to apply | |
| 75 | 754 | for the deduction, if: | |
| 76 | 755 | (1) the individual who occupies the real property receives a | |
| 77 | 756 | deduction provided under section 9, 11, 13, 14, 16, 17.4 (before | |
| 78 | 757 | its expiration), or 37 of this chapter in a particular year; and | |
| 79 | - | SEA 325 — Concur 3 | |
| 80 | 758 | (2) the trust remains eligible for the deduction in the following | |
| 81 | 759 | year. | |
| 82 | 760 | However, for purposes of a deduction under section 37 of this chapter, | |
| 83 | 761 | the individuals that qualify the trust for a deduction must comply with | |
| 84 | 762 | the requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) | |
| 85 | 763 | before January 1, 2013. | |
| 86 | 764 | (f) A cooperative housing corporation (as defined in 26 U.S.C. 216) | |
| 87 | 765 | that is entitled to a deduction under section 37 of this chapter in the | |
| 88 | 766 | immediately preceding calendar year for a homestead (as defined in | |
| 89 | 767 | section 37 of this chapter) is not required to file a statement to apply for | |
| 90 | 768 | the deduction for the current calendar year if the cooperative housing | |
| 91 | 769 | corporation remains eligible for the deduction for the current calendar | |
| 92 | 770 | year. However, the county auditor may, in the county auditor's | |
| 93 | 771 | discretion, terminate the deduction for assessment dates after January | |
| 94 | 772 | 15, 2012, if the individual does not comply with the requirement in | |
| 95 | 773 | IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015), as determined by the | |
| 96 | 774 | county auditor, before January 1, 2013. Before the county auditor | |
| 97 | 775 | terminates a deduction because the taxpayer claiming the deduction did | |
| 98 | 776 | not comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired | |
| 99 | 777 | January 1, 2015) before January 1, 2013, the county auditor shall mail | |
| 100 | 778 | notice of the proposed termination of the deduction to: | |
| 101 | 779 | (1) the last known address of each person liable for any property | |
| 102 | 780 | taxes or special assessment, as shown on the tax duplicate or | |
| 103 | 781 | special assessment records; or | |
| 104 | 782 | (2) the last known address of the most recent owner shown in the | |
| 105 | 783 | transfer book. | |
| 106 | 784 | (g) An individual who: | |
| 785 | + | ES 325—LS 6810/DI 120 19 | |
| 107 | 786 | (1) was eligible for a homestead credit under IC 6-1.1-20.9 | |
| 108 | 787 | (repealed) for property taxes imposed for the March 1, 2007, or | |
| 109 | 788 | January 15, 2008, assessment date; or | |
| 110 | 789 | (2) would have been eligible for a homestead credit under | |
| 111 | 790 | IC 6-1.1-20.9 (repealed) for property taxes imposed for the March | |
| 112 | 791 | 1, 2008, or January 15, 2009, assessment date if IC 6-1.1-20.9 had | |
| 113 | 792 | not been repealed; | |
| 114 | 793 | is not required to file a statement to apply for a deduction under section | |
| 115 | 794 | 37 of this chapter if the individual remains eligible for the deduction in | |
| 116 | 795 | the current year. An individual who filed for a homestead credit under | |
| 117 | 796 | IC 6-1.1-20.9 (repealed) for an assessment date after March 1, 2007 (if | |
| 118 | 797 | the property is real property), or after January 1, 2008 (if the property | |
| 119 | 798 | is personal property), shall be treated as an individual who has filed for | |
| 120 | 799 | a deduction under section 37 of this chapter. However, the county | |
| 121 | 800 | auditor may, in the county auditor's discretion, terminate the deduction | |
| 122 | - | SEA 325 — Concur 4 | |
| 123 | 801 | for assessment dates after January 15, 2012, if the individual does not | |
| 124 | 802 | comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January | |
| 125 | 803 | 1, 2015), as determined by the county auditor, before January 1, 2013. | |
| 126 | 804 | Before the county auditor terminates the deduction because the | |
| 127 | 805 | taxpayer claiming the deduction did not comply with the requirement | |
| 128 | 806 | in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, | |
| 129 | 807 | 2013, the county auditor shall mail notice of the proposed termination | |
| 130 | 808 | of the deduction to the last known address of each person liable for any | |
| 131 | 809 | property taxes or special assessment, as shown on the tax duplicate or | |
| 132 | 810 | special assessment records, or to the last known address of the most | |
| 133 | 811 | recent owner shown in the transfer book. | |
| 134 | 812 | (h) If a county auditor terminates a deduction because the taxpayer | |
| 135 | 813 | claiming the deduction did not comply with the requirement in | |
| 136 | 814 | IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, 2013, | |
| 137 | 815 | the county auditor shall reinstate the deduction if the taxpayer provides | |
| 138 | 816 | proof that the taxpayer is eligible for the deduction and is not claiming | |
| 139 | 817 | the deduction for any other property. | |
| 140 | 818 | (i) A taxpayer described in section 37(k) of this chapter is not | |
| 141 | 819 | required to file a statement to apply for the deduction provided by | |
| 142 | 820 | section 37 of this chapter for a calendar year beginning after December | |
| 143 | 821 | 31, 2008, if the property owned by the taxpayer remains eligible for the | |
| 144 | 822 | deduction for that calendar year. However, the county auditor may | |
| 145 | 823 | terminate the deduction for assessment dates after January 15, 2012, if | |
| 146 | 824 | the individual residing on the property owned by the taxpayer does not | |
| 147 | 825 | comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January | |
| 148 | 826 | 1, 2015), as determined by the county auditor, before January 1, 2013. | |
| 149 | 827 | Before the county auditor terminates a deduction because the | |
| 150 | - | individual residing on the property did not comply with the | |
| 151 | - | requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before | |
| 152 | - | January 1, 2013, the county auditor shall mail notice of the proposed | |
| 153 | - | termination of the deduction to: | |
| 828 | + | ES 325—LS 6810/DI 120 20 | |
| 829 | + | individual residing on the property did not comply with the requirement | |
| 830 | + | in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, | |
| 831 | + | 2013, the county auditor shall mail notice of the proposed termination | |
| 832 | + | of the deduction to: | |
| 154 | 833 | (1) the last known address of each person liable for any property | |
| 155 | 834 | taxes or special assessment, as shown on the tax duplicate or | |
| 156 | 835 | special assessment records; or | |
| 157 | 836 | (2) the last known address of the most recent owner shown in the | |
| 158 | 837 | transfer book. | |
| 159 | 838 | SECTION 2. IC 6-1.1-12-37, AS AMENDED BY P.L.174-2022, | |
| 160 | 839 | SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE | |
| 161 | 840 | JANUARY 1, 2024]: Sec. 37. (a) The following definitions apply | |
| 162 | 841 | throughout this section: | |
| 163 | 842 | (1) "Dwelling" means any of the following: | |
| 164 | 843 | (A) Residential real property improvements that an individual | |
| 165 | - | SEA 325 — Concur 5 | |
| 166 | 844 | uses as the individual's residence, including a house or garage. | |
| 167 | 845 | limited to a single house and a single garage, regardless of | |
| 168 | 846 | whether the single garage is attached to the single house or | |
| 169 | 847 | detached from the single house. | |
| 170 | 848 | (B) A mobile home that is not assessed as real property that an | |
| 171 | 849 | individual uses as the individual's residence. | |
| 172 | 850 | (C) A manufactured home that is not assessed as real property | |
| 173 | 851 | that an individual uses as the individual's residence. | |
| 174 | 852 | (2) "Homestead" means an individual's principal place of | |
| 175 | 853 | residence: | |
| 176 | 854 | (A) that is located in Indiana; | |
| 177 | 855 | (B) that: | |
| 178 | 856 | (i) the individual owns; | |
| 179 | 857 | (ii) the individual is buying under a contract recorded in the | |
| 180 | 858 | county recorder's office, or evidenced by a memorandum of | |
| 181 | 859 | contract recorded in the county recorder's office under | |
| 182 | 860 | IC 36-2-11-20, that provides that the individual is to pay the | |
| 183 | 861 | property taxes on the residence, and that obligates the owner | |
| 184 | 862 | to convey title to the individual upon completion of all of the | |
| 185 | 863 | individual's contract obligations; | |
| 186 | 864 | (iii) the individual is entitled to occupy as a | |
| 187 | 865 | tenant-stockholder (as defined in 26 U.S.C. 216) of a | |
| 188 | 866 | cooperative housing corporation (as defined in 26 U.S.C. | |
| 189 | 867 | 216); or | |
| 190 | 868 | (iv) is a residence described in section 17.9 of this chapter | |
| 191 | 869 | that is owned by a trust if the individual is an individual | |
| 192 | 870 | described in section 17.9 of this chapter; and | |
| 193 | - | (C) that consists of a dwelling and the real estate, not | |
| 194 | - | exceeding and includes up to one (1) acre that immediately | |
| 195 | - | surrounds of land immediately surrounding that dwelling, | |
| 196 | - | and any of the following improvements: | |
| 197 | - | (i) Any number of decks, patios, gazebos, or pools. | |
| 198 | - | (ii) One (1) additional building that is not part of the | |
| 199 | - | dwelling if the building is predominantly used for a | |
| 200 | - | residential purpose and is not used as an investment | |
| 201 | - | property or as a rental property. | |
| 202 | - | (iii) One (1) additional residential yard structure other | |
| 203 | - | than a deck, patio, gazebo, or pool. | |
| 871 | + | ES 325—LS 6810/DI 120 21 | |
| 872 | + | (C) that consists of a dwelling, and the real estate, not | |
| 873 | + | exceeding up to one (1) acre that immediately surrounds of | |
| 874 | + | land immediately surrounding that dwelling, one (1) | |
| 875 | + | additional building that is not part of the dwelling and that | |
| 876 | + | is predominantly used for a residential purpose, and a | |
| 877 | + | deck, patio, gazebo, pool, or another residential yard | |
| 878 | + | structure. | |
| 204 | 879 | Except as provided in subsection (k), The term does not include | |
| 205 | 880 | property owned by a corporation, partnership, limited liability | |
| 206 | 881 | company, or other entity not described in this subdivision. | |
| 207 | 882 | (b) Each year a homestead is eligible for a standard deduction from | |
| 208 | - | SEA 325 — Concur 6 | |
| 209 | 883 | the assessed value of the homestead for an assessment date. Except as | |
| 210 | 884 | provided in subsection (p), (m), the deduction provided by this section | |
| 211 | 885 | applies to property taxes first due and payable for an assessment date | |
| 212 | 886 | only if an individual has an interest in the homestead described in | |
| 213 | 887 | subsection (a)(2)(B) on: | |
| 214 | 888 | (1) the assessment date; or | |
| 215 | 889 | (2) any date in the same year after an assessment date that a | |
| 216 | 890 | statement is filed under subsection (e) or section 44 of this | |
| 217 | 891 | chapter, if the property consists of real property. | |
| 218 | 892 | If more than one (1) individual or entity qualifies property as a | |
| 219 | 893 | homestead under subsection (a)(2)(B) for an assessment date, only one | |
| 220 | 894 | (1) standard deduction from the assessed value of the homestead may | |
| 221 | 895 | be applied for the assessment date. Subject to subsection (c), the | |
| 222 | 896 | auditor of the county shall record and make the deduction for the | |
| 223 | 897 | individual or entity qualifying for the deduction. | |
| 224 | 898 | (c) Except as provided in section 40.5 of this chapter, the total | |
| 225 | 899 | amount of the deduction that a person may receive under this section | |
| 226 | 900 | for a particular year is the lesser of: | |
| 227 | 901 | (1) sixty percent (60%) of the assessed value of the real property, | |
| 228 | 902 | mobile home not assessed as real property, or manufactured home | |
| 229 | 903 | not assessed as real property; or | |
| 230 | 904 | (2) for assessment dates: | |
| 231 | 905 | (A) before January 1, 2023, forty-five thousand dollars | |
| 232 | 906 | ($45,000); or | |
| 233 | 907 | (B) after December 31, 2022, forty-eight thousand dollars | |
| 234 | 908 | ($48,000). | |
| 235 | 909 | (d) A person who has sold real property, a mobile home not assessed | |
| 236 | 910 | as real property, or a manufactured home not assessed as real property | |
| 237 | 911 | to another person under a contract that provides that the contract buyer | |
| 238 | 912 | is to pay the property taxes on the real property, mobile home, or | |
| 239 | 913 | manufactured home may not claim the deduction provided under this | |
| 914 | + | ES 325—LS 6810/DI 120 22 | |
| 240 | 915 | section with respect to that real property, mobile home, or | |
| 241 | 916 | manufactured home. | |
| 242 | 917 | (e) Except as provided in sections 17.8 and 44 of this chapter and | |
| 243 | 918 | subject to section 45 of this chapter, an individual who desires to claim | |
| 244 | 919 | the deduction provided by this section must file a certified statement on | |
| 245 | 920 | forms prescribed by the department of local government finance, with | |
| 246 | 921 | the auditor of the county in which the homestead is located. The | |
| 247 | 922 | statement must include: | |
| 248 | 923 | (1) the parcel number or key number of the property and the name | |
| 249 | 924 | of the city, town, or township in which the property is located; | |
| 250 | 925 | (2) the name of any other location in which the applicant or the | |
| 251 | - | SEA 325 — Concur 7 | |
| 252 | 926 | applicant's spouse owns, is buying, or has a beneficial interest in | |
| 253 | 927 | residential real property; | |
| 254 | 928 | (3) the names of: | |
| 255 | 929 | (A) the applicant and the applicant's spouse (if any): | |
| 256 | 930 | (i) as the names appear in the records of the United States | |
| 257 | 931 | Social Security Administration for the purposes of the | |
| 258 | 932 | issuance of a Social Security card and Social Security | |
| 259 | 933 | number; or | |
| 260 | 934 | (ii) that they use as their legal names when they sign their | |
| 261 | 935 | names on legal documents; | |
| 262 | 936 | if the applicant is an individual; or | |
| 263 | 937 | (B) each individual who qualifies property as a homestead | |
| 264 | 938 | under subsection (a)(2)(B) and the individual's spouse (if any): | |
| 265 | 939 | (i) as the names appear in the records of the United States | |
| 266 | 940 | Social Security Administration for the purposes of the | |
| 267 | 941 | issuance of a Social Security card and Social Security | |
| 268 | 942 | number; or | |
| 269 | 943 | (ii) that they use as their legal names when they sign their | |
| 270 | 944 | names on legal documents; | |
| 271 | 945 | if the applicant is not an individual; and | |
| 272 | 946 | (4) either: | |
| 273 | 947 | (A) the last five (5) digits of the applicant's Social Security | |
| 274 | 948 | number and the last five (5) digits of the Social Security | |
| 275 | 949 | number of the applicant's spouse (if any); or | |
| 276 | 950 | (B) if the applicant or the applicant's spouse (if any) does not | |
| 277 | 951 | have a Social Security number, any of the following for that | |
| 278 | 952 | individual: | |
| 279 | 953 | (i) The last five (5) digits of the individual's driver's license | |
| 280 | 954 | number. | |
| 281 | 955 | (ii) The last five (5) digits of the individual's state | |
| 282 | 956 | identification card number. | |
| 957 | + | ES 325—LS 6810/DI 120 23 | |
| 283 | 958 | (iii) The last five (5) digits of a preparer tax identification | |
| 284 | 959 | number that is obtained by the individual through the | |
| 285 | 960 | Internal Revenue Service of the United States. | |
| 286 | 961 | (iv) If the individual does not have a driver's license, a state | |
| 287 | 962 | identification card, or an Internal Revenue Service preparer | |
| 288 | 963 | tax identification number, the last five (5) digits of a control | |
| 289 | 964 | number that is on a document issued to the individual by the | |
| 290 | 965 | United States government. | |
| 291 | 966 | If a form or statement provided to the county auditor under this section, | |
| 292 | 967 | IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or | |
| 293 | 968 | part or all of the Social Security number of a party or other number | |
| 294 | - | SEA 325 — Concur 8 | |
| 295 | 969 | described in subdivision (4)(B) of a party, the telephone number and | |
| 296 | 970 | the Social Security number or other number described in subdivision | |
| 297 | 971 | (4)(B) included are confidential. The statement may be filed in person | |
| 298 | 972 | or by mail. If the statement is mailed, the mailing must be postmarked | |
| 299 | 973 | on or before the last day for filing. The statement applies for that first | |
| 300 | 974 | year and any succeeding year for which the deduction is allowed. To | |
| 301 | 975 | obtain the deduction for a desired calendar year in which property taxes | |
| 302 | 976 | are first due and payable, the statement must be completed and dated | |
| 303 | 977 | in the immediately preceding calendar year and filed with the county | |
| 304 | 978 | auditor on or before January 5 of the calendar year in which the | |
| 305 | 979 | property taxes are first due and payable. | |
| 306 | 980 | (f) Except as provided in subsection (n), (k), if a person who is | |
| 307 | 981 | receiving, or seeks to receive, the deduction provided by this section in | |
| 308 | 982 | the person's name: | |
| 309 | 983 | (1) changes the use of the individual's property so that part or all | |
| 310 | 984 | of the property no longer qualifies for the deduction under this | |
| 311 | 985 | section; or | |
| 312 | 986 | (2) is not eligible for a deduction under this section because the | |
| 313 | 987 | person is already receiving: | |
| 314 | 988 | (A) a deduction under this section in the person's name as an | |
| 315 | 989 | individual or a spouse; or | |
| 316 | 990 | (B) a deduction under the law of another state that is | |
| 317 | 991 | equivalent to the deduction provided by this section; | |
| 318 | 992 | the person must file a certified statement with the auditor of the county, | |
| 319 | 993 | notifying the auditor of the person's ineligibility, not more than sixty | |
| 320 | 994 | (60) days after the date of the change in eligibility. A person who fails | |
| 321 | 995 | to file the statement required by this subsection may, under | |
| 322 | 996 | IC 6-1.1-36-17, be liable for any additional taxes that would have been | |
| 323 | 997 | due on the property if the person had filed the statement as required by | |
| 324 | 998 | this subsection plus a civil penalty equal to ten percent (10%) of the | |
| 325 | 999 | additional taxes due. The civil penalty imposed under this subsection | |
| 1000 | + | ES 325—LS 6810/DI 120 24 | |
| 326 | 1001 | is in addition to any interest and penalties for a delinquent payment that | |
| 327 | 1002 | might otherwise be due. One percent (1%) of the total civil penalty | |
| 328 | 1003 | collected under this subsection shall be transferred by the county to the | |
| 329 | 1004 | department of local government finance for use by the department in | |
| 330 | 1005 | establishing and maintaining the homestead property data base under | |
| 331 | 1006 | subsection (i) and, to the extent there is money remaining, for any other | |
| 332 | 1007 | purposes of the department. This amount becomes part of the property | |
| 333 | 1008 | tax liability for purposes of this article. | |
| 334 | 1009 | (g) The department of local government finance may adopt rules or | |
| 335 | 1010 | guidelines concerning the application for a deduction under this | |
| 336 | 1011 | section. | |
| 337 | - | SEA 325 — Concur 9 | |
| 338 | 1012 | (h) This subsection does not apply to property in the first year for | |
| 339 | 1013 | which a deduction is claimed under this section if the sole reason that | |
| 340 | 1014 | a deduction is claimed on other property is that the individual or | |
| 341 | 1015 | married couple maintained a principal residence at the other property | |
| 342 | 1016 | on the assessment date in the same year in which an application for a | |
| 343 | 1017 | deduction is filed under this section or, if the application is for a | |
| 344 | 1018 | homestead that is assessed as personal property, on the assessment date | |
| 345 | 1019 | in the immediately preceding year and the individual or married couple | |
| 346 | 1020 | is moving the individual's or married couple's principal residence to the | |
| 347 | 1021 | property that is the subject of the application. Except as provided in | |
| 348 | 1022 | subsection (n), (k), the county auditor may not grant an individual or | |
| 349 | 1023 | a married couple a deduction under this section if: | |
| 350 | 1024 | (1) the individual or married couple, for the same year, claims the | |
| 351 | 1025 | deduction on two (2) or more different applications for the | |
| 352 | 1026 | deduction; and | |
| 353 | 1027 | (2) the applications claim the deduction for different property. | |
| 354 | 1028 | (i) The department of local government finance shall provide secure | |
| 355 | 1029 | access to county auditors to a homestead property data base that | |
| 356 | 1030 | includes access to the homestead owner's name and the numbers | |
| 357 | 1031 | required from the homestead owner under subsection (e)(4) for the sole | |
| 358 | 1032 | purpose of verifying whether an owner is wrongly claiming a deduction | |
| 359 | 1033 | under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or | |
| 360 | 1034 | IC 6-3.6-5 (after December 31, 2016). Each county auditor shall submit | |
| 361 | 1035 | data on deductions applicable to the current tax year on or before | |
| 362 | 1036 | March 15 of each year in a manner prescribed by the department of | |
| 363 | 1037 | local government finance. | |
| 364 | 1038 | (j) A county auditor may require an individual to provide evidence | |
| 365 | 1039 | proving that the individual's residence is the individual's principal place | |
| 366 | 1040 | of residence as claimed in the certified statement filed under subsection | |
| 367 | 1041 | (e). The county auditor may limit the evidence that an individual is | |
| 368 | 1042 | required to submit to a state income tax return, a valid driver's license, | |
| 1043 | + | ES 325—LS 6810/DI 120 25 | |
| 369 | 1044 | or a valid voter registration card showing that the residence for which | |
| 370 | 1045 | the deduction is claimed is the individual's principal place of residence. | |
| 371 | 1046 | The department of local government finance shall work with county | |
| 372 | 1047 | auditors to develop procedures to determine whether a property owner | |
| 373 | 1048 | that is claiming a standard deduction or homestead credit is not eligible | |
| 374 | 1049 | for the standard deduction or homestead credit because the property | |
| 375 | 1050 | owner's principal place of residence is outside Indiana. | |
| 376 | 1051 | (k) As used in this section, "homestead" includes property that | |
| 377 | 1052 | satisfies each of the following requirements: | |
| 378 | 1053 | (1) The property is located in Indiana and consists of a dwelling | |
| 379 | 1054 | and the real estate, not exceeding one (1) acre, that immediately | |
| 380 | - | SEA 325 — Concur 10 | |
| 381 | 1055 | surrounds that dwelling. | |
| 382 | 1056 | (2) The property is the principal place of residence of an | |
| 383 | 1057 | individual. | |
| 384 | 1058 | (3) The property is owned by an entity that is not described in | |
| 385 | 1059 | subsection (a)(2)(B). | |
| 386 | 1060 | (4) The individual residing on the property is a shareholder, | |
| 387 | 1061 | partner, or member of the entity that owns the property. | |
| 388 | 1062 | (5) The property was eligible for the standard deduction under | |
| 389 | 1063 | this section on March 1, 2009. | |
| 390 | 1064 | (l) If a county auditor terminates a deduction for property described | |
| 391 | 1065 | in subsection (k) with respect to property taxes that are: | |
| 392 | 1066 | (1) imposed for an assessment date in 2009; and | |
| 393 | 1067 | (2) first due and payable in 2010; | |
| 394 | 1068 | on the grounds that the property is not owned by an entity described in | |
| 395 | 1069 | subsection (a)(2)(B), the county auditor shall reinstate the deduction if | |
| 396 | 1070 | the taxpayer provides proof that the property is eligible for the | |
| 397 | 1071 | deduction in accordance with subsection (k) and that the individual | |
| 398 | 1072 | residing on the property is not claiming the deduction for any other | |
| 399 | 1073 | property. | |
| 400 | 1074 | (m) For assessment dates after 2009, the term "homestead" includes: | |
| 401 | 1075 | (1) a deck or patio; | |
| 402 | 1076 | (2) a gazebo; or | |
| 403 | 1077 | (3) another residential yard structure, as defined in rules adopted | |
| 404 | 1078 | by the department of local government finance (other than a | |
| 405 | 1079 | swimming pool); | |
| 406 | 1080 | that is assessed as real property and attached to the dwelling. | |
| 407 | 1081 | (n) (k) A county auditor shall grant an individual a deduction under | |
| 408 | 1082 | this section regardless of whether the individual and the individual's | |
| 409 | 1083 | spouse claim a deduction on two (2) different applications and each | |
| 410 | 1084 | application claims a deduction for different property if the property | |
| 411 | 1085 | owned by the individual's spouse is located outside Indiana and the | |
| 1086 | + | ES 325—LS 6810/DI 120 26 | |
| 412 | 1087 | individual files an affidavit with the county auditor containing the | |
| 413 | 1088 | following information: | |
| 414 | 1089 | (1) The names of the county and state in which the individual's | |
| 415 | 1090 | spouse claims a deduction substantially similar to the deduction | |
| 416 | 1091 | allowed by this section. | |
| 417 | 1092 | (2) A statement made under penalty of perjury that the following | |
| 418 | 1093 | are true: | |
| 419 | 1094 | (A) That the individual and the individual's spouse maintain | |
| 420 | 1095 | separate principal places of residence. | |
| 421 | 1096 | (B) That neither the individual nor the individual's spouse has | |
| 422 | 1097 | an ownership interest in the other's principal place of | |
| 423 | - | SEA 325 — Concur 11 | |
| 424 | 1098 | residence. | |
| 425 | 1099 | (C) That neither the individual nor the individual's spouse has, | |
| 426 | 1100 | for that same year, claimed a standard or substantially similar | |
| 427 | 1101 | deduction for any property other than the property maintained | |
| 428 | 1102 | as a principal place of residence by the respective individuals. | |
| 429 | 1103 | A county auditor may require an individual or an individual's spouse to | |
| 430 | 1104 | provide evidence of the accuracy of the information contained in an | |
| 431 | 1105 | affidavit submitted under this subsection. The evidence required of the | |
| 432 | 1106 | individual or the individual's spouse may include state income tax | |
| 433 | 1107 | returns, excise tax payment information, property tax payment | |
| 434 | 1108 | information, driver license information, and voter registration | |
| 435 | 1109 | information. | |
| 436 | 1110 | (o) (l) If: | |
| 437 | 1111 | (1) a property owner files a statement under subsection (e) to | |
| 438 | 1112 | claim the deduction provided by this section for a particular | |
| 439 | 1113 | property; and | |
| 440 | 1114 | (2) the county auditor receiving the filed statement determines | |
| 441 | 1115 | that the property owner's property is not eligible for the deduction; | |
| 442 | 1116 | the county auditor shall inform the property owner of the county | |
| 443 | 1117 | auditor's determination in writing. If a property owner's property is not | |
| 444 | 1118 | eligible for the deduction because the county auditor has determined | |
| 445 | 1119 | that the property is not the property owner's principal place of | |
| 446 | 1120 | residence, the property owner may appeal the county auditor's | |
| 447 | 1121 | determination as provided in IC 6-1.1-15. The county auditor shall | |
| 448 | 1122 | inform the property owner of the owner's right to appeal when the | |
| 449 | 1123 | county auditor informs the property owner of the county auditor's | |
| 450 | 1124 | determination under this subsection. | |
| 451 | 1125 | (p) (m) An individual is entitled to the deduction under this section | |
| 452 | 1126 | for a homestead for a particular assessment date if: | |
| 453 | 1127 | (1) either: | |
| 454 | 1128 | (A) the individual's interest in the homestead as described in | |
| 1129 | + | ES 325—LS 6810/DI 120 27 | |
| 455 | 1130 | subsection (a)(2)(B) is conveyed to the individual after the | |
| 456 | 1131 | assessment date, but within the calendar year in which the | |
| 457 | 1132 | assessment date occurs; or | |
| 458 | 1133 | (B) the individual contracts to purchase the homestead after | |
| 459 | 1134 | the assessment date, but within the calendar year in which the | |
| 460 | 1135 | assessment date occurs; | |
| 461 | 1136 | (2) on the assessment date: | |
| 462 | 1137 | (A) the property on which the homestead is currently located | |
| 463 | 1138 | was vacant land; or | |
| 464 | 1139 | (B) the construction of the dwelling that constitutes the | |
| 465 | 1140 | homestead was not completed; and | |
| 466 | - | SEA 325 — Concur 12 | |
| 467 | 1141 | (3) either: | |
| 468 | 1142 | (A) the individual files the certified statement required by | |
| 469 | 1143 | subsection (e); or | |
| 470 | 1144 | (B) a sales disclosure form that meets the requirements of | |
| 471 | 1145 | section 44 of this chapter is submitted to the county assessor | |
| 472 | 1146 | on or before December 31 of the calendar year for the | |
| 473 | 1147 | individual's purchase of the homestead. | |
| 474 | 1148 | An individual who satisfies the requirements of subdivisions (1) | |
| 475 | 1149 | through (3) is entitled to the deduction under this section for the | |
| 476 | 1150 | homestead for the assessment date, even if on the assessment date the | |
| 477 | 1151 | property on which the homestead is currently located was vacant land | |
| 478 | 1152 | or the construction of the dwelling that constitutes the homestead was | |
| 479 | 1153 | not completed. The county auditor shall apply the deduction for the | |
| 480 | 1154 | assessment date and for the assessment date in any later year in which | |
| 481 | 1155 | the homestead remains eligible for the deduction. A homestead that | |
| 482 | 1156 | qualifies for the deduction under this section as provided in this | |
| 483 | 1157 | subsection is considered a homestead for purposes of section 37.5 of | |
| 484 | 1158 | this chapter and IC 6-1.1-20.6. | |
| 485 | 1159 | (q) (n) This subsection applies to an application for the deduction | |
| 486 | 1160 | provided by this section that is filed for an assessment date occurring | |
| 487 | 1161 | after December 31, 2013. Notwithstanding any other provision of this | |
| 488 | 1162 | section, an individual buying a mobile home that is not assessed as real | |
| 489 | 1163 | property or a manufactured home that is not assessed as real property | |
| 490 | 1164 | under a contract providing that the individual is to pay the property | |
| 491 | 1165 | taxes on the mobile home or manufactured home is not entitled to the | |
| 492 | 1166 | deduction provided by this section unless the parties to the contract | |
| 493 | 1167 | comply with IC 9-17-6-17. | |
| 494 | 1168 | (r) (o) This subsection: | |
| 495 | 1169 | (1) applies to an application for the deduction provided by this | |
| 496 | 1170 | section that is filed for an assessment date occurring after | |
| 497 | 1171 | December 31, 2013; and | |
| 1172 | + | ES 325—LS 6810/DI 120 28 | |
| 498 | 1173 | (2) does not apply to an individual described in subsection (q). | |
| 499 | 1174 | (n). | |
| 500 | 1175 | The owner of a mobile home that is not assessed as real property or a | |
| 501 | 1176 | manufactured home that is not assessed as real property must attach a | |
| 502 | 1177 | copy of the owner's title to the mobile home or manufactured home to | |
| 503 | 1178 | the application for the deduction provided by this section. | |
| 504 | 1179 | (s) (p) For assessment dates after 2013, the term "homestead" | |
| 505 | 1180 | includes property that is owned by an individual who: | |
| 506 | 1181 | (1) is serving on active duty in any branch of the armed forces of | |
| 507 | 1182 | the United States; | |
| 508 | 1183 | (2) was ordered to transfer to a location outside Indiana; and | |
| 509 | - | SEA 325 — Concur 13 | |
| 510 | 1184 | (3) was otherwise eligible, without regard to this subsection, for | |
| 511 | 1185 | the deduction under this section for the property for the | |
| 512 | 1186 | assessment date immediately preceding the transfer date specified | |
| 513 | 1187 | in the order described in subdivision (2). | |
| 514 | 1188 | For property to qualify under this subsection for the deduction provided | |
| 515 | 1189 | by this section, the individual described in subdivisions (1) through (3) | |
| 516 | 1190 | must submit to the county auditor a copy of the individual's transfer | |
| 517 | 1191 | orders or other information sufficient to show that the individual was | |
| 518 | 1192 | ordered to transfer to a location outside Indiana. The property continues | |
| 519 | 1193 | to qualify for the deduction provided by this section until the individual | |
| 520 | 1194 | ceases to be on active duty, the property is sold, or the individual's | |
| 521 | 1195 | ownership interest is otherwise terminated, whichever occurs first. | |
| 522 | 1196 | Notwithstanding subsection (a)(2), the property remains a homestead | |
| 523 | 1197 | regardless of whether the property continues to be the individual's | |
| 524 | 1198 | principal place of residence after the individual transfers to a location | |
| 525 | 1199 | outside Indiana. The property continues to qualify as a homestead | |
| 526 | 1200 | under this subsection if the property is leased while the individual is | |
| 527 | 1201 | away from Indiana and is serving on active duty, if the individual has | |
| 528 | 1202 | lived at the property at any time during the past ten (10) years. | |
| 529 | 1203 | Otherwise, the property ceases to qualify as a homestead under this | |
| 530 | 1204 | subsection if the property is leased while the individual is away from | |
| 531 | 1205 | Indiana. Property that qualifies as a homestead under this subsection | |
| 532 | 1206 | shall also be construed as a homestead for purposes of section 37.5 of | |
| 533 | 1207 | this chapter. | |
| 534 | 1208 | SECTION 3. IC 6-1.1-20.6-2.5, AS ADDED BY P.L.146-2008, | |
| 535 | 1209 | SECTION 218, IS AMENDED TO READ AS FOLLOWS | |
| 536 | 1210 | [EFFECTIVE JANUARY 1, 2024]: Sec. 2.5. (a) As used in this | |
| 537 | 1211 | chapter, "nonresidential real property" refers to either of the following: | |
| 538 | 1212 | (1) real property that | |
| 539 | 1213 | (A) is not: | |
| 540 | 1214 | (i) (1) a homestead; or | |
| 1215 | + | ES 325—LS 6810/DI 120 29 | |
| 541 | 1216 | (ii) (2) residential property; and | |
| 542 | 1217 | (3) long term care property; or | |
| 543 | 1218 | (4) agricultural land. | |
| 544 | 1219 | (B) consists of: | |
| 545 | 1220 | (i) a building or other land improvement; and | |
| 546 | 1221 | (ii) the land, not exceeding the area of the building footprint | |
| 547 | 1222 | or improvement footprint, on which the building or | |
| 548 | 1223 | improvement is located. | |
| 549 | 1224 | (2) Undeveloped land in the amount of the remainder of: | |
| 550 | 1225 | (A) the area of a parcel; minus | |
| 551 | 1226 | (B) the area of the parcel that is part of: | |
| 552 | - | SEA 325 — Concur 14 | |
| 553 | 1227 | (i) a homestead; or | |
| 554 | 1228 | (ii) residential property. | |
| 555 | 1229 | (b) The term does not include agricultural land. | |
| 556 | 1230 | SECTION 4. IC 6-1.1-20.6-4, AS AMENDED BY P.L.166-2014, | |
| 557 | 1231 | SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE | |
| 558 | 1232 | JANUARY 1, 2024]: Sec. 4. As used in this chapter, "residential | |
| 559 | 1233 | property" refers to real property that consists of any of the following: | |
| 560 | 1234 | (1) A single family dwelling that is not part of a homestead and | |
| 561 | 1235 | the land not exceeding one (1) acre, on which the dwelling is | |
| 562 | 1236 | located. | |
| 563 | 1237 | (2) Real property that consists of: | |
| 564 | 1238 | (A) a building that includes two (2) or more dwelling units; | |
| 565 | 1239 | (B) any common areas shared by the dwelling units (including | |
| 566 | 1240 | any land that is a common area, as described in section | |
| 567 | 1241 | 1.2(b)(2) of this chapter); and | |
| 568 | 1242 | (C) the land on which the building is located. | |
| 569 | 1243 | (3) Land rented or leased for the placement of a manufactured | |
| 570 | 1244 | home or mobile home, including any common areas shared by the | |
| 571 | 1245 | manufactured homes or mobile homes. | |
| 572 | 1246 | (4) For assessment dates after December 31, 2023, any other | |
| 573 | 1247 | land, building, or residential yard structure including a deck, | |
| 574 | 1248 | patio, gazebo, or pool that: | |
| 575 | 1249 | (A) is not part of a homestead; and | |
| 576 | 1250 | (B) is predominantly used for a residential purpose. | |
| 577 | 1251 | The term includes a single family dwelling that is under construction | |
| 578 | 1252 | and the land not exceeding one (1) acre, on which the dwelling will be | |
| 579 | 1253 | located. The term does not include real property that consists of a | |
| 580 | 1254 | commercial hotel, motel, inn, tourist camp, or tourist cabin. | |
| 581 | 1255 | SECTION 5. [EFFECTIVE JANUARY 1, 2024] (a) | |
| 582 | 1256 | IC 6-1.1-12-17.8, IC 6-1.1-12-37, IC 6-1.1-20.6-2.5, and | |
| 583 | 1257 | IC 6-1.1-20.6-4, all as amended by this act, apply to assessment | |
| 1258 | + | ES 325—LS 6810/DI 120 30 | |
| 584 | 1259 | dates after December 31, 2023. | |
| 585 | - | (b) This SECTION expires July 1, 2027. | |
| 586 | - | SEA 325 — Concur President of the Senate | |
| 587 | - | President Pro Tempore | |
| 588 | - | Speaker of the House of Representatives | |
| 589 | - | Governor of the State of Indiana | |
| 590 | - | Date: Time: | |
| 591 | - | SEA 325 — Concur | |
| 1260 | + | (b) This SECTION expires July 1, 2027.". | |
| 1261 | + | Delete pages 2 through 10. | |
| 1262 | + | Renumber all SECTIONS consecutively. | |
| 1263 | + | and when so amended that said bill do pass. | |
| 1264 | + | (Reference is to SB 325 as reprinted February 28, 2023.) | |
| 1265 | + | THOMPSON | |
| 1266 | + | Committee Vote: yeas 21, nays 0. | |
| 1267 | + | _____ | |
| 1268 | + | HOUSE MOTION | |
| 1269 | + | Mr. Speaker: I move that Engrossed Senate Bill 325 be amended to | |
| 1270 | + | read as follows: | |
| 1271 | + | Page 5, delete lines 33 through 39, begin a new line double block | |
| 1272 | + | indented and insert: | |
| 1273 | + | "(C) that: | |
| 1274 | + | (i) consists of a dwelling and the real estate, not exceeding | |
| 1275 | + | and up to one (1) acre that immediately surrounds of land | |
| 1276 | + | immediately surrounding that dwelling; and | |
| 1277 | + | (ii) may include any number of decks, patios, gazebos, or | |
| 1278 | + | pools, one (1) additional building that is not part of the | |
| 1279 | + | dwelling and that is predominantly used for a residential | |
| 1280 | + | purpose, and one (1) additional residential yard | |
| 1281 | + | structure other than a deck, patio, gazebo, or pool.". | |
| 1282 | + | (Reference is to ESB 325 as printed April 6, 2023.) | |
| 1283 | + | THOMPSON | |
| 1284 | + | ES 325—LS 6810/DI 120 31 | |
| 1285 | + | HOUSE MOTION | |
| 1286 | + | Mr. Speaker: I move that Engrossed Senate Bill 325 be amended to | |
| 1287 | + | read as follows: | |
| 1288 | + | Page 5, line 37, delete "purpose," and insert "purpose (but does not | |
| 1289 | + | include an investment property or rental property),". | |
| 1290 | + | (Reference is to ESB 325 as printed April 6, 2023.) | |
| 1291 | + | PRYOR | |
| 1292 | + | _____ | |
| 1293 | + | HOUSE MOTION | |
| 1294 | + | Mr. Speaker: I move that Senate Bill 325 be returned to the second | |
| 1295 | + | reading calendar forthwith for the purpose of amendment. | |
| 1296 | + | THOMPSON | |
| 1297 | + | _____ | |
| 1298 | + | HOUSE MOTION | |
| 1299 | + | Mr. Speaker: I move that Engrossed Senate Bill 325 be amended to | |
| 1300 | + | read as follows: | |
| 1301 | + | Page 5, delete lines 33 through 42, begin a new line double block | |
| 1302 | + | indented and insert: | |
| 1303 | + | "(C) that consists of a dwelling and the real estate, not | |
| 1304 | + | exceeding and includes up to one (1) acre that immediately | |
| 1305 | + | surrounds of land immediately surrounding that dwelling, | |
| 1306 | + | and any of the following improvements: | |
| 1307 | + | (i) Any number of decks, patios, gazebos, or pools. | |
| 1308 | + | (ii) One (1) additional building that is not part of the | |
| 1309 | + | dwelling if the building is predominantly used for a | |
| 1310 | + | residential purpose and is not used as an investment | |
| 1311 | + | property or as a rental property. | |
| 1312 | + | (iii) One (1) additional residential yard structure other | |
| 1313 | + | than a deck, patio, gazebo, or pool.". | |
| 1314 | + | (Reference is to ESB 325 as reprinted April 12, 2023.) | |
| 1315 | + | THOMPSON | |
| 1316 | + | ES 325—LS 6810/DI 120 |