Indiana 2024 Regular Session

Indiana House Bill HB1248 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	HOUSE BILL No. 1248
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-12-9; IC 6-1.1-20.6-8.5.
7	7	Synopsis: Tax deduction and credit for persons age 65 or older.
8	8	Increases the maximum assessed value of the real property of an
9	9	individual at least 65 years of age to be eligible for the over 65
10	10	deduction from $240,000 to $340,000 for an assessment date between
11	11	December 31, 2024, and January 1, 2026. Increases the maximum
12	12	assessed value limitation for the over 65 deduction by $1,000 per
13	13	assessment year thereafter. Increases the maximum assessed value of
14	14	the real property of an individual at least 65 years of age to be eligible
15	15	for the additional credit for certain homesteads (the over 65 circuit
16	16	breaker credit) from $240,000 to $340,000 for an assessment date
17	17	between December 31, 2024 and January 1, 2026. Increases the
18	18	maximum assessed value limitation for the over 65 circuit breaker
19	19	credit by $1,000 annually per assessment year thereafter. (Current law
20	20	provides that for an individual who has received the over 65 circuit
21	21	breaker credit in a previous year, increases in assessed value that occur
22	22	after the later of December 31, 2019, or the first year that the individual
23	23	has received the over 65 circuit breaker credit, are not considered
24	24	unless the increase in assessed value is attributable to substantial
25	25	renovation or new improvements.)
26	26	Effective: July 1, 2024.
27	27	Moseley
28	28	January 9, 2024, read first time and referred to Committee on Ways and Means.
29	29	2024 IN 1248—LS 6205/DI 134 Introduced
30	30	Second Regular Session of the 123rd General Assembly (2024)
31	31	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
32	32	Constitution) is being amended, the text of the existing provision will appear in this style type,
33	33	additions will appear in this style type, and deletions will appear in this style type.
34	34	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
35	35	provision adopted), the text of the new provision will appear in this style type. Also, the
36	36	word NEW will appear in that style type in the introductory clause of each SECTION that adds
37	37	a new provision to the Indiana Code or the Indiana Constitution.
38	38	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
39	39	between statutes enacted by the 2023 Regular Session of the General Assembly.
40	40	HOUSE BILL No. 1248
41	41	A BILL FOR AN ACT to amend the Indiana Code concerning
42	42	taxation.
43	43	Be it enacted by the General Assembly of the State of Indiana:
44	44	1 SECTION 1. IC 6-1.1-12-9, AS AMENDED BY P.L.239-2023,
45	45	2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
46	46	3 JULY 1, 2024]: Sec. 9. (a) An individual may obtain a deduction from
47	47	4 the assessed value of the individual's real property, or mobile home or
48	48	5 manufactured home which is not assessed as real property, if:
49	49	6 (1) the individual is at least sixty-five (65) years of age on or
50	50	7 before December 31 of the calendar year preceding the year in
51	51	8 which the deduction is claimed;
52	52	9 (2) for assessment dates before January 1, 2020, the combined
53	53	10 adjusted gross income (as defined in Section 62 of the Internal
54	54	11 Revenue Code) of:
55	55	12 (A) the individual and the individual's spouse; or
56	56	13 (B) the individual and all other individuals with whom:
57	57	14 (i) the individual shares ownership; or
58	58	15 (ii) the individual is purchasing the property under a
59	59	16 contract;
60	60	17 as joint tenants or tenants in common;
61	61	2024 IN 1248—LS 6205/DI 134 2
62	62	1 for the calendar year preceding the year in which the deduction is
63	63	2 claimed did not exceed twenty-five thousand dollars ($25,000);
64	64	3 (3) for assessment dates after December 31, 2019:
65	65	4 (A) the individual had, in the case of an individual who filed
66	66	5 a single return, adjusted gross income (as defined in Section
67	67	6 62 of the Internal Revenue Code) not exceeding thirty
68	68	7 thousand dollars ($30,000), and beginning for the January 1,
69	69	8 2023, assessment date, and each assessment date thereafter,
70	70	9 adjusted annually by an amount equal to the percentage cost
71	71	10 of living increase applied for Social Security benefits for the
72	72	11 immediately preceding calendar year;
73	73	12 (B) the individual had, in the case of an individual who filed
74	74	13 a joint income tax return with the individual's spouse,
75	75	14 combined adjusted gross income (as defined in Section 62 of
76	76	15 the Internal Revenue Code) not exceeding forty thousand
77	77	16 dollars ($40,000), and beginning for the January 1, 2023,
78	78	17 assessment date, and each assessment date thereafter, adjusted
79	79	18 annually by an amount equal to the percentage cost of living
80	80	19 increase applied for Social Security benefits for the
81	81	20 immediately preceding calendar year; or
82	82	21 (C) the combined adjusted gross income (as defined in Section
83	83	22 62 of the Internal Revenue Code) of the individual and all
84	84	23 other individuals with whom:
85	85	24 (i) the individual shares ownership; or
86	86	25 (ii) the individual is purchasing the property under a
87	87	26 contract;
88	88	27 as joint tenants or tenants in common did not exceed forty
89	89	28 thousand dollars ($40,000), and beginning for the January 1,
90	90	29 2023, assessment date, and each assessment date thereafter,
91	91	30 adjusted annually by an amount equal to the percentage cost
92	92	31 of living increase applied for Social Security benefits for the
93	93	32 immediately preceding calendar year;
94	94	33 for the calendar year preceding by two (2) years the calendar year
95	95	34 in which the property taxes are first due and payable;
96	96	35 (4) the individual has owned the real property, mobile home, or
97	97	36 manufactured home for at least one (1) year before claiming the
98	98	37 deduction; or the individual has been buying the real property,
99	99	38 mobile home, or manufactured home under a contract that
100	100	39 provides that the individual is to pay the property taxes on the real
101	101	40 property, mobile home, or manufactured home for at least one (1)
102	102	41 year before claiming the deduction, and the contract or a
103	103	42 memorandum of the contract is recorded in the county recorder's
104	104	2024 IN 1248—LS 6205/DI 134 3
105	105	1 office;
106	106	2 (5) for assessment dates:
107	107	3 (A) before January 1, 2020, the individual and any individuals
108	108	4 covered by subdivision (2)(B) reside on the real property,
109	109	5 mobile home, or manufactured home; or
110	110	6 (B) after December 31, 2019, the individual and any
111	111	7 individuals covered by subdivision (3)(C) reside on the real
112	112	8 property, mobile home, or manufactured home;
113	113	9 (6) except as provided in subsection (i), the assessed value of the
114	114	10 real property, mobile home, or manufactured home does not
115	115	11 exceed:
116	116	12 (A) for an assessment date occurring before January 1,
117	117	13 2026, two three hundred forty thousand dollars ($240,000).
118	118	14 ($340,000); or
119	119	15 (B) for each assessment date occurring after December 31,
120	120	16 2025, three hundred forty thousand dollars ($340,000) plus
121	121	17 one thousand dollars ($1,000) for each assessment date
122	122	18 occurring after December 31, 2025;
123	123	19 (7) the individual receives no other property tax deduction for the
124	124	20 year in which the deduction is claimed, except the deductions
125	125	21 provided by sections 37, (for assessment dates after February 28,
126	126	22 2008) 37.5, and 38 of this chapter; and
127	127	23 (8) the person:
128	128	24 (A) owns the real property, mobile home, or manufactured
129	129	25 home; or
130	130	26 (B) is buying the real property, mobile home, or manufactured
131	131	27 home under contract;
132	132	28 on the date the statement required by section 10.1 of this chapter
133	133	29 is filed.
134	134	30 For purposes of applying the annual cost of living increases described
135	135	31 in subdivision (3)(A) through (3)(C), the annual percentage increase is
136	136	32 applied to the adjusted amount of income from the immediately
137	137	33 preceding year.
138	138	34 (b) Except as provided in subsection (h), in the case of real property,
139	139	35 an individual's deduction under this section equals the lesser of:
140	140	36 (1) one-half (1/2) of the assessed value of the real property; or
141	141	37 (2) fourteen thousand dollars ($14,000).
142	142	38 (c) Except as provided in subsection (h) and section 40.5 of this
143	143	39 chapter, in the case of a mobile home that is not assessed as real
144	144	40 property or a manufactured home which is not assessed as real
145	145	41 property, an individual's deduction under this section equals the lesser
146	146	42 of:
147	147	2024 IN 1248—LS 6205/DI 134 4
148	148	1 (1) one-half (1/2) of the assessed value of the mobile home or
149	149	2 manufactured home; or
150	150	3 (2) fourteen thousand dollars ($14,000).
151	151	4 (d) An individual may not be denied the deduction provided under
152	152	5 this section because the individual is absent from the real property,
153	153	6 mobile home, or manufactured home while in a nursing home or
154	154	7 hospital.
155	155	8 (e) For purposes of this section, if real property, a mobile home, or
156	156	9 a manufactured home is owned by:
157	157	10 (1) tenants by the entirety;
158	158	11 (2) joint tenants; or
159	159	12 (3) tenants in common;
160	160	13 only one (1) deduction may be allowed. However, the age requirement
161	161	14 is satisfied if any one (1) of the tenants is at least sixty-five (65) years
162	162	15 of age.
163	163	16 (f) A surviving spouse is entitled to the deduction provided by this
164	164	17 section if:
165	165	18 (1) the surviving spouse is at least sixty (60) years of age on or
166	166	19 before December 31 of the calendar year preceding the year in
167	167	20 which the deduction is claimed;
168	168	21 (2) the surviving spouse's deceased husband or wife was at least
169	169	22 sixty-five (65) years of age at the time of a death;
170	170	23 (3) the surviving spouse has not remarried; and
171	171	24 (4) the surviving spouse satisfies the requirements prescribed in
172	172	25 subsection (a)(2) through (a)(8).
173	173	26 (g) An individual who has sold real property to another person
174	174	27 under a contract that provides that the contract buyer is to pay the
175	175	28 property taxes on the real property may not claim the deduction
176	176	29 provided under this section against that real property.
177	177	30 (h) In the case of tenants covered by subsection (a)(2)(B) or
178	178	31 (a)(3)(C), if all of the tenants are not at least sixty-five (65) years of
179	179	32 age, the deduction allowed under this section shall be reduced by an
180	180	33 amount equal to the deduction multiplied by a fraction. The numerator
181	181	34 of the fraction is the number of tenants who are not at least sixty-five
182	182	35 (65) years of age, and the denominator is the total number of tenants.
183	183	36 (i) For purposes of determining the assessed value of the real
184	184	37 property, mobile home, or manufactured home under subsection (a)(6)
185	185	38 for an individual who has received a deduction under this section in a
186	186	39 previous year, increases in assessed value that occur after the later of:
187	187	40 (1) December 31, 2019; or
188	188	41 (2) the first year that the individual has received the deduction;
189	189	42 are not considered unless the increase in assessed value is attributable
190	190	2024 IN 1248—LS 6205/DI 134 5
191	191	1 to substantial renovation or new improvements. Where there is an
192	192	2 increase in assessed value for purposes of the deduction under this
193	193	3 section, the assessor shall provide a report to the county auditor
194	194	4 describing the substantial renovation or new improvements, if any, that
195	195	5 were made to the property prior to the increase in assessed value.
196	196	6 SECTION 2. IC 6-1.1-20.6-8.5, AS AMENDED BY P.L.239-2023,
197	197	7 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
198	198	8 JULY 1, 2024]: Sec. 8.5. (a) This section applies to an individual who:
199	199	9 (1) qualified for a standard deduction granted under
200	200	10 IC 6-1.1-12-37 for the individual's homestead property in the
201	201	11 immediately preceding calendar year (or was married at the time
202	202	12 of death to a deceased spouse who qualified for a standard
203	203	13 deduction granted under IC 6-1.1-12-37 for the individual's
204	204	14 homestead property in the immediately preceding calendar year);
205	205	15 (2) qualifies for a standard deduction granted under
206	206	16 IC 6-1.1-12-37 for the same homestead property in the current
207	207	17 calendar year;
208	208	18 (3) is or will be at least sixty-five (65) years of age on or before
209	209	19 December 31 of the calendar year immediately preceding the
210	210	20 current calendar year; and
211	211	21 (4) had:
212	212	22 (A) in the case of an individual who filed a single return,
213	213	23 adjusted gross income (as defined in Section 62 of the Internal
214	214	24 Revenue Code) not exceeding thirty thousand dollars
215	215	25 ($30,000), and beginning for the January 1, 2023, assessment
216	216	26 date, and each assessment date thereafter, adjusted annually by
217	217	27 an amount equal to the percentage cost of living increase
218	218	28 applied for Social Security benefits for the immediately
219	219	29 preceding calendar year; or
220	220	30 (B) in the case of an individual who filed a joint income tax
221	221	31 return with the individual's spouse, combined adjusted gross
222	222	32 income (as defined in Section 62 of the Internal Revenue
223	223	33 Code) not exceeding forty thousand dollars ($40,000), and
224	224	34 beginning for the January 1, 2023, assessment date, and each
225	225	35 assessment date thereafter, adjusted annually by an amount
226	226	36 equal to the percentage cost of living increase applied for
227	227	37 Social Security benefits for the immediately preceding
228	228	38 calendar year;
229	229	39 for the calendar year preceding by two (2) years the calendar year
230	230	40 in which property taxes are first due and payable.
231	231	41 For purposes of applying the annual cost of living increases described
232	232	42 in subdivision (4)(A) and (4)(B), the annual percentage increase is
233	233	2024 IN 1248—LS 6205/DI 134 6
234	234	1 applied to the adjusted amount of income from the immediately
235	235	2 preceding year.
236	236	3 (b) Except as provided in subsection (g), this section does not apply
237	237	4 if:
238	238	5 (1) for an individual who received a credit under this section
239	239	6 before January 1, 2020, the gross assessed value of the homestead
240	240	7 on the assessment date for which property taxes are imposed is at
241	241	8 least two hundred thousand dollars ($200,000);
242	242	9 (2) for an individual who initially applies for a credit under this
243	243	10 section after December 31, 2019, and before January 1, 2023, the
244	244	11 assessed value of the individual's Indiana real property is at least
245	245	12 two hundred thousand dollars ($200,000); or
246	246	13 (3) for an individual who initially applies for a credit under this
247	247	14 section after December 31, 2022, and before January 1, 2025,
248	248	15 the assessed value of the individual's Indiana real property is at
249	249	16 least two hundred forty thousand dollars ($240,000);
250	250	17 (4) for an individual who initially applies for a credit under
251	251	18 this section after December 31, 2024, and before January 1,
252	252	19 2026, the assessed value of the individual's Indiana real
253	253	20 property is at least three hundred forty thousand dollars
254	254	21 ($340,000); or
255	255	22 (5) for an individual who initially applies for a credit under
256	256	23 this section after December 31, 2025, the assessed value of the
257	257	24 individual's Indiana real property is at least three hundred
258	258	25 forty thousand dollars ($340,000) plus one thousand dollars
259	259	26 ($1,000) annually for each assessment date occurring after
260	260	27 December 31, 2025.
261	261	28 (c) An individual is entitled to an additional credit under this section
262	262	29 for property taxes first due and payable for a calendar year on a
263	263	30 homestead if:
264	264	31 (1) the individual and the homestead qualify for the credit under
265	265	32 subsection (a) for the calendar year;
266	266	33 (2) the homestead is not disqualified for the credit under
267	267	34 subsection (b) for the calendar year; and
268	268	35 (3) the filing requirements under subsection (e) are met.
269	269	36 (d) The amount of the credit is equal to the greater of zero (0) or the
270	270	37 result of:
271	271	38 (1) the property tax liability first due and payable on the
272	272	39 homestead property for the calendar year; minus
273	273	40 (2) the result of:
274	274	41 (A) the property tax liability first due and payable on the
275	275	42 qualified homestead property for the immediately preceding
276	276	2024 IN 1248—LS 6205/DI 134 7
277	277	1 year after the application of the credit granted under this
278	278	2 section for that year; multiplied by
279	279	3 (B) one and two hundredths (1.02).
280	280	4 However, property tax liability imposed on any improvements to or
281	281	5 expansion of the homestead property after the assessment date for
282	282	6 which property tax liability described in subdivision (2) was imposed
283	283	7 shall not be considered in determining the credit granted under this
284	284	8 section in the current calendar year.
285	285	9 (e) Applications for a credit under this section shall be filed in the
286	286	10 manner provided for an application for a deduction under
287	287	11 IC 6-1.1-12-9. However, an individual who remains eligible for the
288	288	12 credit in the following year is not required to file a statement to apply
289	289	13 for the credit in the following year. An individual who receives a credit
290	290	14 under this section in a particular year and who becomes ineligible for
291	291	15 the credit in the following year shall notify the auditor of the county in
292	292	16 which the homestead is located of the individual's ineligibility not later
293	293	17 than sixty (60) days after the individual becomes ineligible.
294	294	18 (f) The auditor of each county shall, in a particular year, apply a
295	295	19 credit provided under this section to each individual who received the
296	296	20 credit in the preceding year unless the auditor determines that the
297	297	21 individual is no longer eligible for the credit.
298	298	22 (g) For purposes of determining the:
299	299	23 (1) assessed value of the homestead on the assessment date for
300	300	24 which property taxes are imposed under subsection (b)(1); or
301	301	25 (2) assessed value of the individual's Indiana real property under
302	302	26 subsection (b)(2), (b)(3), (b)(4), or (b)(5);
303	303	27 (3) assessed value of the individual's Indiana real property under
304	304	28 subsection (b)(3);
305	305	29 for an individual who has received a credit under this section in a
306	306	30 previous year, increases in assessed value that occur after the later of
307	307	31 December 31, 2019, or the first year that the individual has received
308	308	32 the credit are not considered unless the increase in assessed value is
309	309	33 attributable to substantial renovation or new improvements. Where
310	310	34 there is an increase in assessed value for purposes of the credit under
311	311	35 this section, the assessor shall provide a report to the county auditor
312	312	36 describing the substantial renovation or new improvements, if any, that
313	313	37 were made to the property prior to the increase in assessed value.
314	314	38 SECTION 3. [EFFECTIVE JULY 1, 2024] (a) IC 6-1.1-12-9, as
315	315	39 amended by this act, applies to assessment dates occurring after
316	316	40 December 31, 2024.
317	317	41 (b) This SECTION expires January 1, 2027.
318	318	2024 IN 1248—LS 6205/DI 134