Introduced Version
SENATE BILL No. 207
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-4-47.
Synopsis: Assessment of community land trust property. Provides for
the true tax value of land and improvements in a community land trust
for purposes of property tax assessment.
Effective: July 1, 2024.
Yoder
January 9, 2024, read first time and referred to Committee on Tax and Fiscal Policy.
2024 IN 207—LS 6869/DI 125 Introduced
Second Regular Session of the 123rd General Assembly (2024)
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 2023 Regular Session of the General Assembly.
SENATE BILL No. 207
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 6-1.1-4-47 IS ADDED TO THE INDIANA CODE
2 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
3 1, 2024]: Sec. 47. (a) This section applies to assessment dates
4 occurring after December 31, 2024.
5 (b) As used in this section, "affordability restrictions" means
6 restrictions set forth in a ground lease concerning the future sale
7 or transfer of the community land trust improvement owned by a
8 qualified owner intended to maintain the continued affordability
9 of the community land trust improvement, including at least the
10 following:
11 (1) The community land trust improvement may only be sold
12 to another qualified owner who intends to:
13 (A) use the community land trust improvement as the
14 qualified owner's primary place of residence; and
15 (B) enter into a ground lease with the community land
16 trust.
17 (2) A formula to be used to calculate the sale or transfer price
2024 IN 207—LS 6869/DI 125 2
1 that preserves the continued affordability of the community
2 land trust improvement.
3 (3) A purchase option for the community land trust intended
4 to preserve the continued affordability of the community land
5 trust improvement.
6 (c) As used in this section, "community land trust" means a
7 nonprofit corporation that meets the following requirements:
8 (1) The nonprofit corporation is exempt from taxation under
9 Section 501(c)(3) of the Internal Revenue Code.
10 (2) The primary purpose of the nonprofit corporation is the
11 creation and maintenance of permanently affordable single
12 family or multi-family residences.
13 (3) The nonprofit corporation leases community land trust
14 land on which a community land trust improvement is located
15 to a qualified owner under a ground lease that provides for
16 the qualified owner's use of the community land trust
17 improvement as the qualified owner's primary place of
18 residence.
19 (d) As used in this section, "community land trust
20 improvement" means a dwelling unit and associated improvements
21 located on community land trust land that is occupied by a
22 qualified owner as the qualified owner's primary place of residence
23 according to the terms of a ground lease.
24 (e) As used in this section, "community land trust land" means
25 land owned by a community land trust for the purposes described
26 in subsection (c)(2) and (c)(3).
27 (f) As used in this section, "ground lease" means a lease entered
28 into between a community land trust as lessor and a qualified
29 owner as lessee that allows the qualified owner to occupy a
30 community land trust improvement located on community land
31 trust land and includes at least the following:
32 (1) Affordability restrictions.
33 (2) The initial appraised value of the community land trust
34 improvement at the time the lease is entered into, or at the
35 time otherwise specified.
36 (3) The monthly fee, if any, that the qualified owner must pay
37 to the community land trust for use of the community land
38 trust land. However, the fee considered under this subdivision
39 does not include property tax payments, inspection fees,
40 mortgages, or insurance escrow payments.
41 (4) A term of ninety-nine (99) years, with some provision for
42 renewal.
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1 (g) As used in this section, "qualified owner" means an
2 individual who is a member of a household with annual household
3 income in an amount that is not more than eighty percent (80%) of
4 the median household income in the community land trust land's
5 surrounding area, as determined according to the median
6 household income amounts published by the United States
7 Department of Housing and Urban Development at the time the
8 ground lease is entered into.
9 (h) The true tax value of community land trust land in an
10 assessment year is the present value of the long term revenue that
11 will be received from any fee described in subsection (f)(3).
12 (i) The true tax value of a community land trust improvement
13 in an assessment year that occurs in the first year of a ground lease
14 to which the community land trust improvement is subject is the
15 purchase price of the community land trust improvement that was
16 paid by the owner of the community land trust improvement.
17 (j) For purposes of making a reassessment of a community land
18 trust improvement under section 4.2 of this chapter or an annual
19 adjustment under section 4.5 of this chapter, the true tax value of
20 a community land trust improvement after the initial assessment
21 under subsection (i) may not exceed an amount equal to the
22 amount of the resale price as determined under the resale formula
23 price amount for the community land trust improvement as set
24 forth in the affordability restrictions of the ground lease to which
25 the community land trust improvement is subject.
2024 IN 207—LS 6869/DI 125