Introduced Version
SENATE BILL No. 355
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1; IC 6-6-5.
Synopsis: Property tax matters. Repeals the property tax deduction for
a surviving spouse of a WWI veteran. Makes certain changes to the
qualification requirements and amounts for the deduction for
individuals who are at least 65 years of age and the additional credit for
certain homesteads. Requires the true tax value of a privately owned
wastewater facility to be determined by applying the income
capitalization approach. Provides that, if the application of the income
capitalization method for an assessment year results in a zero or
negative assessment, the privately owned wastewater facility is exempt
from property taxation for that assessment year. Makes corresponding
changes.
Effective: July 1, 2023; January 1, 2024.
Rogers
January 17, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
2023 IN 355—LS 7058/DI 120 Introduced
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2022 Regular Session of the General Assembly.
SENATE BILL No. 355
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 6-1.1-12-9, AS AMENDED BY P.L.174-2022,
2 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2024]: Sec. 9. (a) An individual may obtain a deduction
4 from the assessed value of the individual's real property, or mobile
5 home or manufactured home which is not assessed as real property, if:
6 (1) the individual is at least sixty-five (65) years of age on or
7 before December 31 of the calendar year preceding the year in
8 which the deduction is claimed;
9 (2) for assessment dates before January 1, 2020, the combined
10 adjusted gross income (as defined in Section 62 of the Internal
11 Revenue Code) of:
12 (A) the individual and the individual's spouse; or
13 (B) the individual and all other individuals with whom:
14 (i) the individual shares ownership; or
15 (ii) the individual is purchasing the property under a
16 contract;
17 as joint tenants or tenants in common;
2023 IN 355—LS 7058/DI 120 2
1 for the calendar year preceding the year in which the deduction is
2 claimed did not exceed twenty-five thousand dollars ($25,000);
3 (3) for assessment dates after December 31, 2019:
4 (A) the individual had, in the case of an individual who filed
5 a single return, adjusted gross income (as defined in Section
6 62 of the Internal Revenue Code) not exceeding thirty
7 thousand dollars ($30,000), and beginning for the January
8 1, 2024, assessment date, and each assessment date
9 thereafter, adjusted annually by an amount equal to the
10 percentage cost of living increase applied for social
11 security benefits;
12 (B) the individual had, in the case of an individual who filed
13 a joint income tax return with the individual's spouse,
14 combined adjusted gross income (as defined in Section 62 of
15 the Internal Revenue Code) not exceeding forty thousand
16 dollars ($40,000), and beginning for the January 1, 2024,
17 assessment date, and each assessment date thereafter,
18 adjusted annually by an amount equal to the percentage
19 cost of living increase applied for social security benefits;
20 or
21 (C) the combined adjusted gross income (as defined in Section
22 62 of the Internal Revenue Code) of the individual and all
23 other individuals with whom:
24 (i) the individual shares ownership; or
25 (ii) the individual is purchasing the property under a
26 contract;
27 as joint tenants or tenants in common did not exceed forty
28 thousand dollars ($40,000), and beginning for the January
29 1, 2024, assessment date, and each assessment date
30 thereafter, adjusted annually by an amount equal to the
31 percentage cost of living increase applied for social
32 security benefits;
33 for the calendar year preceding by two (2) years the calendar year
34 in which the property taxes are first due and payable;
35 (4) the individual has owned the real property, mobile home, or
36 manufactured home for at least one (1) year before claiming the
37 deduction; or the individual has been buying the real property,
38 mobile home, or manufactured home under a contract that
39 provides that the individual is to pay the property taxes on the real
40 property, mobile home, or manufactured home for at least one (1)
41 year before claiming the deduction, and the contract or a
42 memorandum of the contract is recorded in the county recorder's
2023 IN 355—LS 7058/DI 120 3
1 office;
2 (5) for assessment dates:
3 (A) before January 1, 2020, the individual and any individuals
4 covered by subdivision (2)(B) reside on the real property,
5 mobile home, or manufactured home; or
6 (B) after December 31, 2019, the individual and any
7 individuals covered by subdivision (3)(C) reside on the real
8 property, mobile home, or manufactured home;
9 (6) except as provided in subsection (i), the assessed value of the
10 real property, mobile home, or manufactured home does not
11 exceed two hundred forty thousand dollars ($240,000). three
12 hundred twenty thousand dollars ($320,000).
13 (7) the individual receives no other property tax deduction for the
14 year in which the deduction is claimed, except the deductions
15 provided by sections 37, (for assessment dates after February 28,
16 2008) 37.5, and 38 of this chapter; and
17 (8) the person:
18 (A) owns the real property, mobile home, or manufactured
19 home; or
20 (B) is buying the real property, mobile home, or manufactured
21 home under contract;
22 on the date the statement required by section 10.1 of this chapter
23 is filed.
24 (b) Except as provided in subsection (h), in the case of real property,
25 an individual's deduction under this section equals the following: lesser
26 of:
27 (1) If the assessed value of the real property does not exceed
28 two hundred forty thousand dollars ($240,000), the lesser of:
29 (A) one-half (1/2) of the assessed value of the real property; or
30 (2) (B) fourteen thousand dollars ($14,000).
31 (2) If the assessed value of the real property exceeds two
32 hundred forty thousand dollars ($240,000), but does not
33 exceed two hundred eighty thousand dollars ($280,000), nine
34 thousand three hundred thirty-three dollars ($9,333).
35 (3) If the assessed value of the real property exceeds two
36 hundred eighty thousand dollars ($280,000), but does not
37 exceed three hundred twenty thousand dollars ($320,000),
38 three thousand six hundred sixty-six dollars ($3,666).
39 (4) If the assessed value of the real property exceeds three
40 hundred twenty thousand dollars ($320,000), zero dollars ($0).
41 (c) Except as provided in subsection (h) and section 40.5 of this
42 chapter, in the case of a mobile home that is not assessed as real
2023 IN 355—LS 7058/DI 120 4
1 property or a manufactured home which is not assessed as real
2 property, an individual's deduction under this section equals the
3 following: lesser of:
4 (1) If the assessed value of the mobile home that is not
5 assessed as real property or a manufactured home does not
6 exceed two hundred forty thousand dollars ($240,000), the
7 lesser of:
8 (A) one-half (1/2) of the assessed value of the mobile home or
9 manufactured home; or
10 (2) (B) fourteen thousand dollars ($14,000).
11 (2) If the assessed value of the mobile home that is not
12 assessed as real property or a manufactured home exceeds
13 two hundred forty thousand dollars ($240,000), but does not
14 exceed two hundred eighty thousand dollars ($280,000), nine
15 thousand three hundred thirty-three dollars ($9,333).
16 (3) If the assessed value of the mobile home that is not
17 assessed as real property or a manufactured home exceeds
18 two hundred eighty thousand dollars ($280,000), but does not
19 exceed three hundred twenty thousand dollars ($320,000),
20 three thousand six hundred sixty-six dollars ($3,666).
21 (4) If the assessed value of the mobile home that is not
22 assessed as real property or a manufactured home exceeds
23 three hundred twenty thousand dollars ($320,000), zero
24 dollars ($0).
25 (d) An individual may not be denied the deduction provided under
26 this section because the individual is absent from the real property,
27 mobile home, or manufactured home while in a nursing home or
28 hospital.
29 (e) For purposes of this section, if real property, a mobile home, or
30 a manufactured home is owned by:
31 (1) tenants by the entirety;
32 (2) joint tenants; or
33 (3) tenants in common;
34 only one (1) deduction may be allowed. However, the age requirement
35 is satisfied if any one (1) of the tenants is at least sixty-five (65) years
36 of age.
37 (f) A surviving spouse is entitled to the deduction provided by this
38 section if:
39 (1) the surviving spouse is at least sixty (60) years of age on or
40 before December 31 of the calendar year preceding the year in
41 which the deduction is claimed;
42 (2) the surviving spouse's deceased husband or wife was at least
2023 IN 355—LS 7058/DI 120 5
1 sixty-five (65) years of age at the time of a death;
2 (3) the surviving spouse has not remarried; and
3 (4) the surviving spouse satisfies the requirements prescribed in
4 subsection (a)(2) through (a)(8).
5 (g) An individual who has sold real property to another person
6 under a contract that provides that the contract buyer is to pay the
7 property taxes on the real property may not claim the deduction
8 provided under this section against that real property.
9 (h) In the case of tenants covered by subsection (a)(2)(B) or
10 (a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
11 age, the deduction allowed under this section shall be reduced by an
12 amount equal to the deduction multiplied by a fraction. The numerator
13 of the fraction is the number of tenants who are not at least sixty-five
14 (65) years of age, and the denominator is the total number of tenants.
15 (i) For purposes of determining the assessed value of the real
16 property, mobile home, or manufactured home under subsection (a)(6)
17 for an individual who has received a deduction under this section in a
18 previous year, increases in assessed value that occur after the later of:
19 (1) December 31, 2019; or
20 (2) the first year that the individual has received the deduction;
21 are not considered unless the increase in assessed value is attributable
22 to substantial renovation or new improvements. Where there is an
23 increase in assessed value for purposes of the deduction under this
24 section, the assessor shall provide a report to the county auditor
25 describing the substantial renovation or new improvements, if any, that
26 were made to the property prior to the increase in assessed value.
27 SECTION 2. IC 6-1.1-12-13, AS AMENDED BY P.L.293-2013(ts),
28 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
29 JULY 1, 2023]: Sec. 13. (a) Except as provided in section 40.5 of this
30 chapter, an individual may have twenty-four thousand nine hundred
31 sixty dollars ($24,960) deducted from the assessed value of the taxable
32 tangible property that the individual owns, or real property, a mobile
33 home not assessed as real property, or a manufactured home not
34 assessed as real property that the individual is buying under a contract
35 that provides that the individual is to pay property taxes on the real
36 property, mobile home, or manufactured home, if the contract or a
37 memorandum of the contract is recorded in the county recorder's office
38 and if:
39 (1) the individual served in the military or naval forces of the
40 United States during any of its wars;
41 (2) the individual received an honorable discharge;
42 (3) the individual has a disability with a service connected
2023 IN 355—LS 7058/DI 120 6
1 disability of ten percent (10%) or more;
2 (4) the individual's disability is evidenced by:
3 (A) a pension certificate, an award of compensation, or a
4 disability compensation check issued by the United States
5 Department of Veterans Affairs; or
6 (B) a certificate of eligibility issued to the individual by the
7 Indiana department of veterans' affairs after the Indiana
8 department of veterans' affairs has determined that the
9 individual's disability qualifies the individual to receive a
10 deduction under this section; and
11 (5) the individual:
12 (A) owns the real property, mobile home, or manufactured
13 home; or
14 (B) is buying the real property, mobile home, or manufactured
15 home under contract;
16 on the date the statement required by section 15 of this chapter is
17 filed.
18 (b) The surviving spouse of an individual may receive the deduction
19 provided by this section if the individual satisfied the requirements of
20 subsection (a)(1) through (a)(4) at the time of death and the surviving
21 spouse satisfies the requirement of subsection (a)(5) at the time the
22 deduction statement is filed. The surviving spouse is entitled to the
23 deduction regardless of whether the property for which the deduction
24 is claimed was owned by the deceased veteran or the surviving spouse
25 before the deceased veteran's death.
26 (c) One who receives the deduction provided by this section may not
27 receive the deduction provided by section 16 of this chapter. However,
28 the individual may receive any other property tax deduction which the
29 individual is entitled to by law.
30 (d) (c) An individual who has sold real property, a mobile home not
31 assessed as real property, or a manufactured home not assessed as real
32 property to another person under a contract that provides that the
33 contract buyer is to pay the property taxes on the real property, mobile
34 home, or manufactured home may not claim the deduction provided
35 under this section against that real property, mobile home, or
36 manufactured home.
37 SECTION 3. IC 6-1.1-12-16 IS REPEALED [EFFECTIVE JULY
38 1, 2023]. Sec. 16. (a) Except as provided in section 40.5 of this chapter,
39 a surviving spouse may have the sum of eighteen thousand seven
40 hundred twenty dollars ($18,720) deducted from the assessed value of
41 his or her tangible property, or real property, mobile home not assessed
42 as real property, or manufactured home not assessed as real property
2023 IN 355—LS 7058/DI 120 7
1 that the surviving spouse is buying under a contract that provides that
2 the surviving spouse is to pay property taxes on the real property,
3 mobile home, or manufactured home, if the contract or a memorandum
4 of the contract is recorded in the county recorder's office, and if:
5 (1) the deceased spouse served in the military or naval forces of
6 the United States before November 12, 1918;
7 (2) the deceased spouse received an honorable discharge; and
8 (3) the surviving spouse:
9 (A) owns the real property, mobile home, or manufactured
10 home; or
11 (B) is buying the real property, mobile home, or manufactured
12 home under contract;
13 on the date the statement required by section 17 of this chapter is
14 filed.
15 (b) A surviving spouse who receives the deduction provided by this
16 section may not receive the deduction provided by section 13 of this
17 chapter. However, he or she may receive any other deduction which he
18 or she is entitled to by law.
19 (c) An individual who has sold real property, a mobile home not
20 assessed as real property, or a manufactured home not assessed as real
21 property to another person under a contract that provides that the
22 contract buyer is to pay the property taxes on the real property, mobile
23 home, or manufactured home may not claim the deduction provided
24 under this section against that real property, mobile home, or
25 manufactured home.
26 SECTION 4. IC 6-1.1-12-17 IS REPEALED [EFFECTIVE JULY
27 1, 2023]. Sec. 17. Except as provided in section 17.8 of this chapter and
28 subject to section 45 of this chapter, a surviving spouse who desires to
29 claim the deduction provided by section 16 of this chapter must file a
30 statement with the auditor of the county in which the surviving spouse
31 resides. To obtain the deduction for a desired calendar year in which
32 property taxes are first due and payable, the statement must be
33 completed and dated in the immediately preceding calendar year and
34 filed with the county auditor on or before January 5 of the calendar year
35 in which the property taxes are first due and payable. The statement
36 may be filed in person or by mail. If mailed, the mailing must be
37 postmarked on or before the last day for filing. The statement shall
38 contain:
39 (1) a sworn statement that the surviving spouse is entitled to the
40 deduction; and
41 (2) the record number and page where the contract or
42 memorandum of the contract is recorded, if the individual is
2023 IN 355—LS 7058/DI 120 8
1 buying the real property on a contract that provides that the
2 individual is to pay property taxes on the real property.
3 In addition to the statement, the surviving spouse shall submit to the
4 county auditor for the auditor's inspection a letter or certificate from the
5 United States Department of Veterans Affairs establishing the service
6 of the deceased spouse in the military or naval forces of the United
7 States before November 12, 1918.
8 SECTION 5. IC 6-1.1-12-17.8, AS AMENDED BY P.L.174-2022,
9 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
10 JULY 1, 2023]: Sec. 17.8. (a) An individual who receives a deduction
11 provided under section 9, 11, 13, 14, 16, 17.4 (before its expiration), or
12 37 of this chapter in a particular year and who remains eligible for the
13 deduction in the following year is not required to file a statement to
14 apply for the deduction in the following year. However, for purposes
15 of a deduction under section 37 of this chapter, the county auditor may,
16 in the county auditor's discretion, terminate the deduction for
17 assessment dates after January 15, 2012, if the individual does not
18 comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
19 1, 2015), as determined by the county auditor, before January 1, 2013.
20 Before the county auditor terminates the deduction because the
21 taxpayer claiming the deduction did not comply with the requirement
22 in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1,
23 2013, the county auditor shall mail notice of the proposed termination
24 of the deduction to:
25 (1) the last known address of each person liable for any property
26 taxes or special assessment, as shown on the tax duplicate or
27 special assessment records; or
28 (2) the last known address of the most recent owner shown in the
29 transfer book.
30 (b) An individual who receives a deduction provided under section
31 9, 11, 13, 14, 16, or 17.4 (before its expiration) of this chapter in a
32 particular year and who becomes ineligible for the deduction in the
33 following year shall notify the auditor of the county in which the real
34 property, mobile home, or manufactured home for which the individual
35 claims the deduction is located of the individual's ineligibility in the
36 year in which the individual becomes ineligible. An individual who
37 becomes ineligible for a deduction under section 37 of this chapter
38 shall notify the county auditor of the county in which the property is
39 located in conformity with section 37 of this chapter.
40 (c) The auditor of each county shall, in a particular year, apply a
41 deduction provided under section 9, 11, 13, 14, 16, 17.4 (before its
42 expiration), or 37 of this chapter to each individual who received the
2023 IN 355—LS 7058/DI 120 9
1 deduction in the preceding year unless the auditor determines that the
2 individual is no longer eligible for the deduction.
3 (d) An individual who receives a deduction provided under section
4 9, 11, 13, 14, 16, 17.4 (before its expiration), or 37 of this chapter for
5 property that is jointly held with another owner in a particular year and
6 remains eligible for the deduction in the following year is not required
7 to file a statement to reapply for the deduction following the removal
8 of the joint owner if:
9 (1) the individual is the sole owner of the property following the
10 death of the individual's spouse; or
11 (2) the individual is the sole owner of the property following the
12 death of a joint owner who was not the individual's spouse.
13 If a county auditor terminates a deduction under section 9 of this
14 chapter, a deduction under section 37 of this chapter, or a credit under
15 IC 6-1.1-20.6-8.5 after June 30, 2017, and before May 1, 2019, because
16 the taxpayer claiming the deduction or credit did not comply with a
17 requirement added to this subsection by P.L.255-2017 to reapply for
18 the deduction or credit, the county auditor shall reinstate the deduction
19 or credit if the taxpayer provides proof that the taxpayer is eligible for
20 the deduction or credit and is not claiming the deduction or credit for
21 any other property.
22 (e) A trust entitled to a deduction under section 9, 11, 13, 14, 16,
23 17.4 (before its expiration), or 37 of this chapter for real property
24 owned by the trust and occupied by an individual in accordance with
25 section 17.9 of this chapter is not required to file a statement to apply
26 for the deduction, if:
27 (1) the individual who occupies the real property receives a
28 deduction provided under section 9, 11, 13, 14, 16, 17.4 (before
29 its expiration), or 37 of this chapter in a particular year; and
30 (2) the trust remains eligible for the deduction in the following
31 year.
32 However, for purposes of a deduction under section 37 of this chapter,
33 the individuals that qualify the trust for a deduction must comply with
34 the requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015)
35 before January 1, 2013.
36 (f) A cooperative housing corporation (as defined in 26 U.S.C. 216)
37 that is entitled to a deduction under section 37 of this chapter in the
38 immediately preceding calendar year for a homestead (as defined in
39 section 37 of this chapter) is not required to file a statement to apply for
40 the deduction for the current calendar year if the cooperative housing
41 corporation remains eligible for the deduction for the current calendar
42 year. However, the county auditor may, in the county auditor's
2023 IN 355—LS 7058/DI 120 10
1 discretion, terminate the deduction for assessment dates after January
2 15, 2012, if the individual does not comply with the requirement in
3 IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015), as determined by the
4 county auditor, before January 1, 2013. Before the county auditor
5 terminates a deduction because the taxpayer claiming the deduction did
6 not comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired
7 January 1, 2015) before January 1, 2013, the county auditor shall mail
8 notice of the proposed termination of the deduction to:
9 (1) the last known address of each person liable for any property
10 taxes or special assessment, as shown on the tax duplicate or
11 special assessment records; or
12 (2) the last known address of the most recent owner shown in the
13 transfer book.
14 (g) An individual who:
15 (1) was eligible for a homestead credit under IC 6-1.1-20.9
16 (repealed) for property taxes imposed for the March 1, 2007, or
17 January 15, 2008, assessment date; or
18 (2) would have been eligible for a homestead credit under
19 IC 6-1.1-20.9 (repealed) for property taxes imposed for the March
20 1, 2008, or January 15, 2009, assessment date if IC 6-1.1-20.9 had
21 not been repealed;
22 is not required to file a statement to apply for a deduction under section
23 37 of this chapter if the individual remains eligible for the deduction in
24 the current year. An individual who filed for a homestead credit under
25 IC 6-1.1-20.9 (repealed) for an assessment date after March 1, 2007 (if
26 the property is real property), or after January 1, 2008 (if the property
27 is personal property), shall be treated as an individual who has filed for
28 a deduction under section 37 of this chapter. However, the county
29 auditor may, in the county auditor's discretion, terminate the deduction
30 for assessment dates after January 15, 2012, if the individual does not
31 comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
32 1, 2015), as determined by the county auditor, before January 1, 2013.
33 Before the county auditor terminates the deduction because the
34 taxpayer claiming the deduction did not comply with the requirement
35 in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1,
36 2013, the county auditor shall mail notice of the proposed termination
37 of the deduction to the last known address of each person liable for any
38 property taxes or special assessment, as shown on the tax duplicate or
39 special assessment records, or to the last known address of the most
40 recent owner shown in the transfer book.
41 (h) If a county auditor terminates a deduction because the taxpayer
42 claiming the deduction did not comply with the requirement in
2023 IN 355—LS 7058/DI 120 11
1 IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before January 1, 2013,
2 the county auditor shall reinstate the deduction if the taxpayer provides
3 proof that the taxpayer is eligible for the deduction and is not claiming
4 the deduction for any other property.
5 (i) A taxpayer described in section 37(k) of this chapter is not
6 required to file a statement to apply for the deduction provided by
7 section 37 of this chapter for a calendar year beginning after December
8 31, 2008, if the property owned by the taxpayer remains eligible for the
9 deduction for that calendar year. However, the county auditor may
10 terminate the deduction for assessment dates after January 15, 2012, if
11 the individual residing on the property owned by the taxpayer does not
12 comply with the requirement in IC 6-1.1-22-8.1(b)(9) (expired January
13 1, 2015), as determined by the county auditor, before January 1, 2013.
14 Before the county auditor terminates a deduction because the
15 individual residing on the property did not comply with the
16 requirement in IC 6-1.1-22-8.1(b)(9) (expired January 1, 2015) before
17 January 1, 2013, the county auditor shall mail notice of the proposed
18 termination of the deduction to:
19 (1) the last known address of each person liable for any property
20 taxes or special assessment, as shown on the tax duplicate or
21 special assessment records; or
22 (2) the last known address of the most recent owner shown in the
23 transfer book.
24 SECTION 6. IC 6-1.1-12-17.9, AS AMENDED BY P.L.190-2016,
25 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2023]: Sec. 17.9. A trust is entitled to a deduction under
27 section 9, 11, 13, 14, 16, or 17.4 (before its expiration) of this chapter
28 for real property owned by the trust and occupied by an individual if
29 the county auditor determines that the individual:
30 (1) upon verification in the body of the deed or otherwise, has
31 either:
32 (A) a beneficial interest in the trust; or
33 (B) the right to occupy the real property rent free under the
34 terms of a qualified personal residence trust created by the
35 individual under United States Treasury Regulation
36 25.2702-5(c)(2); and
37 (2) otherwise qualifies for the deduction.
38 SECTION 7. IC 6-1.1-12-43, AS AMENDED BY P.L.174-2022,
39 SECTION 23, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2023]: Sec. 43. (a) For purposes of this section:
41 (1) "benefit" refers to a deduction under section 9, 11, 13, 14, 16,
42 17.4 (before its expiration), 26, 29, 33, 34, 37, or 37.5 of this
2023 IN 355—LS 7058/DI 120 12
1 chapter;
2 (2) "closing agent" means a person that closes a transaction;
3 (3) "customer" means an individual who obtains a loan in a
4 transaction; and
5 (4) "transaction" means a single family residential:
6 (A) first lien purchase money mortgage transaction; or
7 (B) refinancing transaction.
8 (b) Before closing a transaction after December 31, 2004, a closing
9 agent must provide to the customer the form referred to in subsection
10 (c).
11 (c) Before June 1, 2004, the department of local government finance
12 shall prescribe the form to be provided by closing agents to customers
13 under subsection (b). The department shall make the form available to
14 closing agents, county assessors, county auditors, and county treasurers
15 in hard copy and electronic form. County assessors, county auditors,
16 and county treasurers shall make the form available to the general
17 public. The form must:
18 (1) on one (1) side:
19 (A) list each benefit; and
20 (B) list the eligibility criteria for each benefit;
21 (2) on the other side indicate:
22 (A) each action by and each type of documentation from the
23 customer required to file for each benefit; and
24 (B) sufficient instructions and information to permit a party to
25 terminate a standard deduction under section 37 of this chapter
26 on any property on which the party or the spouse of the party
27 will no longer be eligible for the standard deduction under
28 section 37 of this chapter after the party or the party's spouse
29 begins to reside at the property that is the subject of the
30 closing, including an explanation of the tax consequences and
31 applicable penalties, if a party unlawfully claims a standard
32 deduction under section 37 of this chapter; and
33 (3) be printed in one (1) of two (2) or more colors prescribed by
34 the department of local government finance that distinguish the
35 form from other documents typically used in a closing referred to
36 in subsection (b).
37 (d) A closing agent:
38 (1) may reproduce the form referred to in subsection (c);
39 (2) in reproducing the form, must use a print color prescribed by
40 the department of local government finance; and
41 (3) is not responsible for the content of the form referred to in
42 subsection (c) and shall be held harmless by the department of
2023 IN 355—LS 7058/DI 120 13
1 local government finance from any liability for the content of the
2 form.
3 (e) This subsection applies to a transaction that is closed after
4 December 31, 2009. In addition to providing the customer the form
5 described in subsection (c) before closing the transaction, a closing
6 agent shall do the following as soon as possible after the closing, and
7 within the time prescribed by the department of insurance under
8 IC 27-7-3-15.5:
9 (1) To the extent determinable, input the information described in
10 IC 27-7-3-15.5(c)(2) into the system maintained by the
11 department of insurance under IC 27-7-3-15.5.
12 (2) Submit the form described in IC 27-7-3-15.5(c) to the data
13 base described in IC 27-7-3-15.5(c)(2)(D).
14 (f) A closing agent to which this section applies shall document the
15 closing agent's compliance with this section with respect to each
16 transaction in the form of verification of compliance signed by the
17 customer.
18 (g) Subject to IC 27-7-3-15.5(d), a closing agent is subject to a civil
19 penalty of twenty-five dollars ($25) for each instance in which the
20 closing agent fails to comply with this section with respect to a
21 customer. The penalty:
22 (1) may be enforced by the state agency that has administrative
23 jurisdiction over the closing agent in the same manner that the
24 agency enforces the payment of fees or other penalties payable to
25 the agency; and
26 (2) shall be paid into:
27 (A) the state general fund, if the closing agent fails to comply
28 with subsection (b); or
29 (B) the home ownership education account established by
30 IC 5-20-1-27, if the closing agent fails to comply with
31 subsection (e) in a transaction that is closed after December
32 31, 2009.
33 (h) A closing agent is not liable for any other damages claimed by
34 a customer because of:
35 (1) the closing agent's mere failure to provide the appropriate
36 document to the customer under subsection (b); or
37 (2) with respect to a transaction that is closed after December 31,
38 2009, the closing agent's failure to input the information or submit
39 the form described in subsection (e).
40 (i) The state agency that has administrative jurisdiction over a
41 closing agent shall:
42 (1) examine the closing agent to determine compliance with this
2023 IN 355—LS 7058/DI 120 14
1 section; and
2 (2) impose and collect penalties under subsection (g).
3 SECTION 8. IC 6-1.1-12-46, AS AMENDED BY P.L.174-2022,
4 SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
5 JULY 1, 2023]: Sec. 46. (a) This section applies to real property for an
6 assessment date in 2011 or a later year if:
7 (1) the real property is not exempt from property taxation for the
8 assessment date;
9 (2) title to the real property is transferred after the assessment date
10 and on or before the December 31 that next succeeds the
11 assessment date;
12 (3) the transferee of the real property applies for an exemption
13 under IC 6-1.1-11 for the next succeeding assessment date; and
14 (4) the county property tax assessment board of appeals
15 determines that the real property is exempt from property taxation
16 for that next succeeding assessment date.
17 (b) For the assessment date referred to in subsection (a)(1), real
18 property is eligible for any deductions for which the transferor under
19 subsection (a)(2) was eligible for that assessment date under the
20 following:
21 (1) IC 6-1.1-12-1 (before its repeal).
22 (2) IC 6-1.1-12-9.
23 (3) IC 6-1.1-12-11.
24 (4) IC 6-1.1-12-13.
25 (5) IC 6-1.1-12-14.
26 (6) IC 6-1.1-12-16 (before its repeal).
27 (7) IC 6-1.1-12-17.4 (before its expiration).
28 (8) IC 6-1.1-12-18 (before its expiration).
29 (9) IC 6-1.1-12-22 (before its expiration).
30 (10) IC 6-1.1-12-37.
31 (11) IC 6-1.1-12-37.5.
32 (c) For the payment date applicable to the assessment date referred
33 to in subsection (a)(1), real property is eligible for the credit for
34 excessive residential property taxes under IC 6-1.1-20.6 for which the
35 transferor under subsection (a)(2) would be eligible for that payment
36 date if the transfer had not occurred.
37 SECTION 9. IC 6-1.1-20.6-8.5, AS AMENDED BY P.L.174-2022,
38 SECTION 42, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JANUARY 1, 2024]: Sec. 8.5. (a) This section applies to an individual
40 who:
41 (1) qualified for a standard deduction granted under
42 IC 6-1.1-12-37 for the individual's homestead property in the
2023 IN 355—LS 7058/DI 120 15
1 immediately preceding calendar year (or was married at the time
2 of death to a deceased spouse who qualified for a standard
3 deduction granted under IC 6-1.1-12-37 for the individual's
4 homestead property in the immediately preceding calendar year);
5 (2) qualifies for a standard deduction granted under
6 IC 6-1.1-12-37 for the same homestead property in the current
7 calendar year;
8 (3) is or will be at least sixty-five (65) years of age on or before
9 December 31 of the calendar year immediately preceding the
10 current calendar year; and
11 (4) had:
12 (A) in the case of an individual who filed a single return,
13 adjusted gross income (as defined in Section 62 of the Internal
14 Revenue Code) not exceeding thirty thousand dollars
15 ($30,000), and beginning for the January 1, 2024,
16 assessment date, and each assessment date thereafter,
17 adjusted annually by an amount equal to the percentage
18 cost of living increase applied for social security benefits;
19 or
20 (B) in the case of an individual who filed a joint income tax
21 return with the individual's spouse, combined adjusted gross
22 income (as defined in Section 62 of the Internal Revenue
23 Code) not exceeding forty thousand dollars ($40,000), and
24 beginning for the January 1, 2024, assessment date, and
25 each assessment date thereafter, adjusted annually by an
26 amount equal to the percentage cost of living increase
27 applied for social security benefits;
28 for the calendar year preceding by two (2) years the calendar year
29 in which property taxes are first due and payable.
30 (b) Except as provided in subsection (g), this section does not apply
31 if:
32 (1) except as provided in subdivision (3), for an individual who
33 received a credit under this section before January 1, 2020, the
34 gross assessed value of the homestead on the assessment date for
35 which property taxes are imposed is at least two hundred
36 thousand dollars ($200,000); or
37 (2) except as provided in subdivision (3), for an individual who
38 initially applies for a credit under this section after December 31,
39 2019, the assessed value of the individual's Indiana real property
40 is at least two hundred thousand dollars ($200,000); or
41 (3) for an individual who received a credit under this section
42 and for an individual who initially applies for a credit under
2023 IN 355—LS 7058/DI 120 16
1 this section after December 31, 2023, the gross assessed value
2 of the homestead on the assessment date for which property
3 taxes are imposed is at least three hundred twenty thousand
4 dollars ($320,000).
5 (c) An individual is entitled to an additional credit under this section
6 for property taxes first due and payable for a calendar year on a
7 homestead if:
8 (1) the individual and the homestead qualify for the credit under
9 subsection (a) for the calendar year;
10 (2) the homestead is not disqualified for the credit under
11 subsection (b) for the calendar year; and
12 (3) the filing requirements under subsection (e) are met.
13 (d) The amount of the credit is equal to the greater of zero (0) or the
14 result of:
15 (1) the property tax liability first due and payable on the
16 homestead property for the calendar year; minus
17 (2) the result of:
18 (A) the property tax liability first due and payable on the
19 qualified homestead property for the immediately preceding
20 year after the application of the credit granted under this
21 section for that year; multiplied by
22 (B) the following:
23 (i) If the assessed value of the qualified homestead
24 property does not exceed two hundred forty thousand
25 dollars ($240,000), one and two hundredths (1.02).
26 (ii) If the assessed value of the qualified homestead
27 property exceeds two hundred forty thousand dollars
28 ($240,000), but does not exceed two hundred eighty
29 thousand dollars ($280,000), one and thirty-five
30 thousandths (1.035).
31 (iii) If the assessed value of the qualified homestead
32 property exceeds two hundred eighty thousand dollars
33 ($280,000), but does not exceed three hundred twenty
34 thousand dollars ($320,000), one and five hundredths
35 (1.05).
36 (iv) If the assessed value of the qualified homestead
37 property exceeds three hundred twenty thousand dollars
38 ($320,000), zero (0).
39 However, property tax liability imposed on any improvements to or
40 expansion of the homestead property after the assessment date for
41 which property tax liability described in subdivision (2) was imposed
42 shall not be considered in determining the credit granted under this
2023 IN 355—LS 7058/DI 120 17
1 section in the current calendar year.
2 (e) Applications for a credit under this section shall be filed in the
3 manner provided for an application for a deduction under
4 IC 6-1.1-12-9. However, an individual who remains eligible for the
5 credit in the following year is not required to file a statement to apply
6 for the credit in the following year. An individual who receives a credit
7 under this section in a particular year and who becomes ineligible for
8 the credit in the following year shall notify the auditor of the county in
9 which the homestead is located of the individual's ineligibility not later
10 than sixty (60) days after the individual becomes ineligible.
11 (f) The auditor of each county shall, in a particular year, apply a
12 credit provided under this section to each individual who received the
13 credit in the preceding year unless the auditor determines that the
14 individual is no longer eligible for the credit.
15 (g) For purposes of determining the:
16 (1) assessed value of the homestead on the assessment date for
17 which property taxes are imposed under subsection (b)(1); or
18 (2) assessed value of the individual's Indiana real property under
19 subsection (b)(2);
20 for an individual who has received a credit under this section in a
21 previous year, increases in assessed value that occur after the later of
22 December 31, 2019, or the first year that the individual has received
23 the credit are not considered unless the increase in assessed value is
24 attributable to substantial renovation or new improvements. Where
25 there is an increase in assessed value for purposes of the credit under
26 this section, the assessor shall provide a report to the county auditor
27 describing the substantial renovation or new improvements, if any, that
28 were made to the property prior to the increase in assessed value.
29 SECTION 10. IC 6-1.1-10-51.5 IS ADDED TO THE INDIANA
30 CODE AS A NEW SECTION TO READ AS FOLLOWS
31 [EFFECTIVE JULY 1, 2023]: Sec. 51.5. (a) This section applies to
32 assessment dates occurring after December 31, 2023.
33 (b) As used in this chapter, "privately owned wastewater
34 facility" means a sewer plant, a water plant, or both, that is
35 privately owned.
36 (c) The true tax value of a privately owned wastewater facility
37 shall be determined by applying the income capitalization
38 approach.
39 (d) The department shall, by rules adopted under IC 4-22-2,
40 establish uniform income capitalization rates annually and
41 procedures to be used for the assessment of a privately owned
42 wastewater facility and provide the annual capitalization rate to
2023 IN 355—LS 7058/DI 120 18
1 assessing officials upon request. Assessing officials shall use the
2 procedures adopted by the department to assess, reassess, and
3 annually adjust the assessed value of a privately owned wastewater
4 facility.
5 (e) If the application of the income capitalization method for an
6 assessment year results in a zero (0) or negative assessment, the
7 privately owned wastewater facility is exempt from property
8 taxation for that assessment year.
9 SECTION 11. IC 6-6-5-5, AS AMENDED BY P.L.256-2017,
10 SECTION 26, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
11 JULY 1, 2023]: Sec. 5. A person that owns a vehicle and that is entitled
12 to a property tax deduction under IC 6-1.1-12-13 or IC 6-1.1-12-14 or
13 IC 6-1.1-12-16 is entitled to a credit against the vehicle excise tax as
14 follows: Any remaining deduction from assessed valuation to which the
15 person is entitled, applicable to property taxes payable in the year in
16 which the excise tax imposed by this chapter is due, after allowance of
17 the deduction on real estate and personal property owned by the person,
18 shall reduce the vehicle excise tax in the amount of two dollars ($2) on
19 each one hundred dollars ($100) of taxable value or major portion
20 thereof. The county auditor shall, upon request, furnish a certified
21 statement to the person verifying the credit allowable under this
22 section, and the statement shall be presented to and retained by the
23 bureau to support the credit.
24 SECTION 12. IC 6-6-5-5.2, AS AMENDED BY P.L.256-2017,
25 SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26 JULY 1, 2023]: Sec. 5.2. (a) This section applies to a registration year
27 beginning after December 31, 2013.
28 (b) Subject to subsection (d), an individual may claim a credit
29 against the tax imposed by this chapter upon a vehicle owned by the
30 individual if the individual is eligible for the credit under any of the
31 following:
32 (1) The individual meets all the following requirements:
33 (A) The individual served in the military or naval forces of the
34 United States during any of its wars.
35 (B) The individual received an honorable discharge.
36 (C) The individual has a disability with a service connected
37 disability of ten percent (10%) or more.
38 (D) The individual's disability is evidenced by:
39 (i) a pension certificate, an award of compensation, or a
40 disability compensation check issued by the United States
41 Department of Veterans Affairs; or
42 (ii) a certificate of eligibility issued to the individual by the
2023 IN 355—LS 7058/DI 120 19
1 Indiana department of veterans' affairs after the Indiana
2 department of veterans' affairs has determined that the
3 individual's disability qualifies the individual to receive a
4 credit under this section.
5 (E) The individual does not own property to which a property
6 tax deduction may be applied under IC 6-1.1-12-13.
7 (2) The individual meets all the following requirements:
8 (A) The individual served in the military or naval forces of the
9 United States for at least ninety (90) days.
10 (B) The individual received an honorable discharge.
11 (C) The individual either:
12 (i) has a total disability; or
13 (ii) is at least sixty-two (62) years of age and has a disability
14 of at least ten percent (10%).
15 (D) The individual's disability is evidenced by:
16 (i) a pension certificate or an award of compensation issued
17 by the United States Department of Veterans Affairs; or
18 (ii) a certificate of eligibility issued to the individual by the
19 Indiana department of veterans' affairs after the Indiana
20 department of veterans' affairs has determined that the
21 individual's disability qualifies the individual to receive a
22 credit under this section.
23 (E) The individual does not own property to which a property
24 tax deduction may be applied under IC 6-1.1-12-14.
25 (3) The individual meets both of the following requirements:
26 (A) The individual is the surviving spouse of any of the
27 following:
28 (i) An individual who would have been eligible for a credit
29 under this section if the individual had been alive in 2013
30 and this section had been in effect in 2013.
31 (ii) An individual who received a credit under this section in
32 the previous calendar year.
33 (iii) A World War I veteran.
34 (B) The individual does not own property to which a property
35 tax deduction may be applied under IC 6-1.1-12-13 or
36 IC 6-1.1-12-14. or IC 6-1.1-12-16.
37 (c) The amount of the credit that may be claimed under this section
38 is equal to the lesser of the following:
39 (1) The amount of the excise tax liability for the individual's
40 vehicle as determined under section 3 or 3.5 of this chapter, as
41 applicable.
42 (2) Seventy dollars ($70).
2023 IN 355—LS 7058/DI 120 20
1 (d) The maximum number of motor vehicles for which an individual
2 may claim a credit under this section is two (2).
3 (e) An individual may not claim a credit under both:
4 (1) this section; and
5 (2) section 5 of this chapter.
6 (f) The credit allowed by this section must be claimed on a form
7 prescribed by the bureau. An individual claiming the credit must attach
8 to the form an affidavit from the county auditor stating that the
9 claimant does not own property to which a property tax deduction may
10 be applied under IC 6-1.1-12-13 or IC 6-1.1-12-14. or IC 6-1.1-12-16.
11 SECTION 13. [EFFECTIVE JANUARY 1, 2024] (a) IC 6-1.1-12-9,
12 IC 6-1.1-12-13, IC 6-1.1-12-17.8, IC 6-1.1-12-17.9, IC 6-1.1-12-43,
13 IC 6-1.1-12-46, IC 6-1.1-20.6-8.5, IC 6-6-5-5, and IC 6-6-5-5.5, as
14 amended by this act, and IC 6-1.1-12-16 and IC 6-1.1-12-17, as
15 repealed by this act, apply to assessment dates occurring after
16 December 31, 2023.
17 (b) This SECTION expires July 1, 2026.
2023 IN 355—LS 7058/DI 120