Indiana 2024 Regular Session

Indiana Senate Bill SB0207 Compare Versions

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

Old	New	Differences
1	1
2	2	Introduced Version
3	3	SENATE BILL No. 207
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1-4-47.
7	7	Synopsis: Assessment of community land trust property. Provides for
8	8	the true tax value of land and improvements in a community land trust
9	9	for purposes of property tax assessment.
10	10	Effective: July 1, 2024.
11	11	Yoder
12	12	January 9, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
13	13	2024 IN 207—LS 6869/DI 125 Introduced
14	14	Second Regular Session of the 123rd General Assembly (2024)
15	15	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
16	16	Constitution) is being amended, the text of the existing provision will appear in this style type,
17	17	additions will appear in this style type, and deletions will appear in this style type.
18	18	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
19	19	provision adopted), the text of the new provision will appear in this style type. Also, the
20	20	word NEW will appear in that style type in the introductory clause of each SECTION that adds
21	21	a new provision to the Indiana Code or the Indiana Constitution.
22	22	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
23	23	between statutes enacted by the 2023 Regular Session of the General Assembly.
24	24	SENATE BILL No. 207
25	25	A BILL FOR AN ACT to amend the Indiana Code concerning
26	26	taxation.
27	27	Be it enacted by the General Assembly of the State of Indiana:
28	28	1 SECTION 1. IC 6-1.1-4-47 IS ADDED TO THE INDIANA CODE
29	29	2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
30	30	3 1, 2024]: Sec. 47. (a) This section applies to assessment dates
31	31	4 occurring after December 31, 2024.
32	32	5 (b) As used in this section, "affordability restrictions" means
33	33	6 restrictions set forth in a ground lease concerning the future sale
34	34	7 or transfer of the community land trust improvement owned by a
35	35	8 qualified owner intended to maintain the continued affordability
36	36	9 of the community land trust improvement, including at least the
37	37	10 following:
38	38	11 (1) The community land trust improvement may only be sold
39	39	12 to another qualified owner who intends to:
40	40	13 (A) use the community land trust improvement as the
41	41	14 qualified owner's primary place of residence; and
42	42	15 (B) enter into a ground lease with the community land
43	43	16 trust.
44	44	17 (2) A formula to be used to calculate the sale or transfer price
45	45	2024 IN 207—LS 6869/DI 125 2
46	46	1 that preserves the continued affordability of the community
47	47	2 land trust improvement.
48	48	3 (3) A purchase option for the community land trust intended
49	49	4 to preserve the continued affordability of the community land
50	50	5 trust improvement.
51	51	6 (c) As used in this section, "community land trust" means a
52	52	7 nonprofit corporation that meets the following requirements:
53	53	8 (1) The nonprofit corporation is exempt from taxation under
54	54	9 Section 501(c)(3) of the Internal Revenue Code.
55	55	10 (2) The primary purpose of the nonprofit corporation is the
56	56	11 creation and maintenance of permanently affordable single
57	57	12 family or multi-family residences.
58	58	13 (3) The nonprofit corporation leases community land trust
59	59	14 land on which a community land trust improvement is located
60	60	15 to a qualified owner under a ground lease that provides for
61	61	16 the qualified owner's use of the community land trust
62	62	17 improvement as the qualified owner's primary place of
63	63	18 residence.
64	64	19 (d) As used in this section, "community land trust
65	65	20 improvement" means a dwelling unit and associated improvements
66	66	21 located on community land trust land that is occupied by a
67	67	22 qualified owner as the qualified owner's primary place of residence
68	68	23 according to the terms of a ground lease.
69	69	24 (e) As used in this section, "community land trust land" means
70	70	25 land owned by a community land trust for the purposes described
71	71	26 in subsection (c)(2) and (c)(3).
72	72	27 (f) As used in this section, "ground lease" means a lease entered
73	73	28 into between a community land trust as lessor and a qualified
74	74	29 owner as lessee that allows the qualified owner to occupy a
75	75	30 community land trust improvement located on community land
76	76	31 trust land and includes at least the following:
77	77	32 (1) Affordability restrictions.
78	78	33 (2) The initial appraised value of the community land trust
79	79	34 improvement at the time the lease is entered into, or at the
80	80	35 time otherwise specified.
81	81	36 (3) The monthly fee, if any, that the qualified owner must pay
82	82	37 to the community land trust for use of the community land
83	83	38 trust land. However, the fee considered under this subdivision
84	84	39 does not include property tax payments, inspection fees,
85	85	40 mortgages, or insurance escrow payments.
86	86	41 (4) A term of ninety-nine (99) years, with some provision for
87	87	42 renewal.
88	88	2024 IN 207—LS 6869/DI 125 3
89	89	1 (g) As used in this section, "qualified owner" means an
90	90	2 individual who is a member of a household with annual household
91	91	3 income in an amount that is not more than eighty percent (80%) of
92	92	4 the median household income in the community land trust land's
93	93	5 surrounding area, as determined according to the median
94	94	6 household income amounts published by the United States
95	95	7 Department of Housing and Urban Development at the time the
96	96	8 ground lease is entered into.
97	97	9 (h) The true tax value of community land trust land in an
98	98	10 assessment year is the present value of the long term revenue that
99	99	11 will be received from any fee described in subsection (f)(3).
100	100	12 (i) The true tax value of a community land trust improvement
101	101	13 in an assessment year that occurs in the first year of a ground lease
102	102	14 to which the community land trust improvement is subject is the
103	103	15 purchase price of the community land trust improvement that was
104	104	16 paid by the owner of the community land trust improvement.
105	105	17 (j) For purposes of making a reassessment of a community land
106	106	18 trust improvement under section 4.2 of this chapter or an annual
107	107	19 adjustment under section 4.5 of this chapter, the true tax value of
108	108	20 a community land trust improvement after the initial assessment
109	109	21 under subsection (i) may not exceed an amount equal to the
110	110	22 amount of the resale price as determined under the resale formula
111	111	23 price amount for the community land trust improvement as set
112	112	24 forth in the affordability restrictions of the ground lease to which
113	113	25 the community land trust improvement is subject.
114	114	2024 IN 207—LS 6869/DI 125