Introduced Version
SENATE BILL No. 454
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-12-9.
Synopsis: Eligibility for senior property tax deduction. Increases the
adjusted gross income threshold for an individual at least 65 years of
age to obtain a deduction from the assessed value of the individual's
real property from $30,000 to $44,000. Increases the threshold for an
individual at least 65 years of age filing a joint return from $40,000 to
$88,000. Increases the combined adjusted gross income threshold for
an individual at least 65 years of age and all other individuals with
whom the individual shares ownership as joint tenants or tenants in
common from $40,000 to $88,000.
Effective: January 1, 2023 (retroactive).
Breaux
January 19, 2023, read first time and referred to Committee on Tax and Fiscal Policy.
2023 IN 454—LS 6680/DI 129 Introduced
First Regular Session of the 123rd General Assembly (2023)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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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. 454
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, 2023 (RETROACTIVE)]: Sec. 9. (a) An individual may
4 obtain a deduction from the assessed value of the individual's real
5 property, or mobile home or manufactured home which is not assessed
6 as real property, if:
7 (1) the individual is at least sixty-five (65) years of age on or
8 before December 31 of the calendar year preceding the year in
9 which the deduction is claimed;
10 (2) for assessment dates before January 1, 2020, the combined
11 adjusted gross income (as defined in Section 62 of the Internal
12 Revenue Code) of:
13 (A) the individual and the individual's spouse; or
14 (B) the individual and all other individuals with whom:
15 (i) the individual shares ownership; or
16 (ii) the individual is purchasing the property under a
17 contract;
2023 IN 454—LS 6680/DI 129 2
1 as joint tenants or tenants in common;
2 for the calendar year preceding the year in which the deduction is
3 claimed did not exceed twenty-five thousand dollars ($25,000);
4 (3) for assessment dates after December 31, 2019:
5 (A) the individual had, in the case of an individual who filed
6 a single return, adjusted gross income (as defined in Section
7 62 of the Internal Revenue Code) not exceeding thirty
8 forty-four thousand dollars ($30,000); ($44,000);
9 (B) the individual had, in the case of an individual who filed
10 a joint income tax return with the individual's spouse,
11 combined adjusted gross income (as defined in Section 62 of
12 the Internal Revenue Code) not exceeding forty eighty-eight
13 thousand dollars ($40,000); ($88,000); or
14 (C) the combined adjusted gross income (as defined in Section
15 62 of the Internal Revenue Code) of the individual and all
16 other individuals with whom:
17 (i) the individual shares ownership; or
18 (ii) the individual is purchasing the property under a
19 contract;
20 as joint tenants or tenants in common did not exceed forty
21 eighty-eight thousand dollars ($40,000); ($88,000);
22 for the calendar year preceding by two (2) years the calendar year
23 in which the property taxes are first due and payable;
24 (4) the individual has owned the real property, mobile home, or
25 manufactured home for at least one (1) year before claiming the
26 deduction; or the individual has been buying the real property,
27 mobile home, or manufactured home under a contract that
28 provides that the individual is to pay the property taxes on the real
29 property, mobile home, or manufactured home for at least one (1)
30 year before claiming the deduction, and the contract or a
31 memorandum of the contract is recorded in the county recorder's
32 office;
33 (5) for assessment dates:
34 (A) before January 1, 2020, the individual and any individuals
35 covered by subdivision (2)(B) reside on the real property,
36 mobile home, or manufactured home; or
37 (B) after December 31, 2019, the individual and any
38 individuals covered by subdivision (3)(C) reside on the real
39 property, mobile home, or manufactured home;
40 (6) except as provided in subsection (i), the assessed value of the
41 real property, mobile home, or manufactured home does not
42 exceed two hundred forty thousand dollars ($240,000).
2023 IN 454—LS 6680/DI 129 3
1 (7) the individual receives no other property tax deduction for the
2 year in which the deduction is claimed, except the deductions
3 provided by sections 37, (for assessment dates after February 28,
4 2008) 37.5, and 38 of this chapter; and
5 (8) the person:
6 (A) owns the real property, mobile home, or manufactured
7 home; or
8 (B) is buying the real property, mobile home, or manufactured
9 home under contract;
10 on the date the statement required by section 10.1 of this chapter
11 is filed.
12 (b) Except as provided in subsection (h), in the case of real property,
13 an individual's deduction under this section equals the lesser of:
14 (1) one-half (1/2) of the assessed value of the real property; or
15 (2) fourteen thousand dollars ($14,000).
16 (c) Except as provided in subsection (h) and section 40.5 of this
17 chapter, in the case of a mobile home that is not assessed as real
18 property or a manufactured home which is not assessed as real
19 property, an individual's deduction under this section equals the lesser
20 of:
21 (1) one-half (1/2) of the assessed value of the mobile home or
22 manufactured home; or
23 (2) fourteen thousand dollars ($14,000).
24 (d) An individual may not be denied the deduction provided under
25 this section because the individual is absent from the real property,
26 mobile home, or manufactured home while in a nursing home or
27 hospital.
28 (e) For purposes of this section, if real property, a mobile home, or
29 a manufactured home is owned by:
30 (1) tenants by the entirety;
31 (2) joint tenants; or
32 (3) tenants in common;
33 only one (1) deduction may be allowed. However, the age requirement
34 is satisfied if any one (1) of the tenants is at least sixty-five (65) years
35 of age.
36 (f) A surviving spouse is entitled to the deduction provided by this
37 section if:
38 (1) the surviving spouse is at least sixty (60) years of age on or
39 before December 31 of the calendar year preceding the year in
40 which the deduction is claimed;
41 (2) the surviving spouse's deceased husband or wife was at least
42 sixty-five (65) years of age at the time of a death;
2023 IN 454—LS 6680/DI 129 4
1 (3) the surviving spouse has not remarried; and
2 (4) the surviving spouse satisfies the requirements prescribed in
3 subsection (a)(2) through (a)(8).
4 (g) An individual who has sold real property to another person
5 under a contract that provides that the contract buyer is to pay the
6 property taxes on the real property may not claim the deduction
7 provided under this section against that real property.
8 (h) In the case of tenants covered by subsection (a)(2)(B) or
9 (a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
10 age, the deduction allowed under this section shall be reduced by an
11 amount equal to the deduction multiplied by a fraction. The numerator
12 of the fraction is the number of tenants who are not at least sixty-five
13 (65) years of age, and the denominator is the total number of tenants.
14 (i) For purposes of determining the assessed value of the real
15 property, mobile home, or manufactured home under subsection (a)(6)
16 for an individual who has received a deduction under this section in a
17 previous year, increases in assessed value that occur after the later of:
18 (1) December 31, 2019; or
19 (2) the first year that the individual has received the deduction;
20 are not considered unless the increase in assessed value is attributable
21 to substantial renovation or new improvements. Where there is an
22 increase in assessed value for purposes of the deduction under this
23 section, the assessor shall provide a report to the county auditor
24 describing the substantial renovation or new improvements, if any, that
25 were made to the property prior to the increase in assessed value.
26 SECTION 2. [EFFECTIVE JANUARY 1, 2023 (RETROACTIVE)]
27 (a) IC 6-1.1-12-9, as amended by this act, applies to assessment
28 dates occurring after December 31, 2022.
29 (b) This SECTION expires January 1, 2025.
30 SECTION 3. An emergency is declared for this act.
2023 IN 454—LS 6680/DI 129