*SJ9617*
Introduced Version
SENATE JOINT
RESOLUTION No. _____
_____
DIGEST OF INTRODUCED RESOL UTION
Citations Affected: Article 10, Section 1 of the Constitution of the
State of Indiana.
Synopsis: Exemption from tax liability. Eliminates any property tax
liability remaining after the application of all deductions, credits, or
abatements provided under any law: (1) on real property that is the
principal homestead residence of an individual who is at least 65 years
of age; and (2) on business personal property. Requires the general
assembly to replace the lost revenue to local taxing units. Eliminates an
obsolete provision. This proposed amendment has not been previously
agreed to by a general assembly.
Effective: This proposed amendment must be agreed to by two
consecutive general assemblies and ratified by a majority of the state's
voters voting on the question to be effective.
Young M
_______________________, read first time and referred to Committee on
20241326
2024 SJ 9617/DI 51 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,
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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 JOINT
RESOLUTION
A JOINT RESOLUTION proposing an amendment to Article 10,
Section 1 of the Constitution of the State of Indiana concerning
taxation.
Be it resolved by the General Assembly of the State of Indiana:
1 SECTION 1. The following amendments to the Constitution of the
2 State of Indiana are proposed and agreed to by this, the One Hundred
3 Twenty-Third General Assembly of the State of Indiana, and are
4 referred to the next General Assembly for reconsideration and
5 agreement.
6 SECTION 2. ARTICLE 10, SECTION 1 OF THE CONSTITUTION
7 OF THE STATE OF INDIANA IS AMENDED TO READ AS
8 FOLLOWS: Section 1. (a) Subject to this section, the General
9 Assembly shall provide, by law, for a uniform and equal rate of
10 property assessment and taxation and shall prescribe regulations to
11 secure a just valuation for taxation of all property, both real and
12 personal.
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1 (b) A provision of this section permitting the General Assembly to
2 exempt property from taxation also permits the General Assembly to
3 exercise its legislative power to enact property tax deductions and
4 credits for the property. The General Assembly may impose reasonable
5 filing requirements for an exemption, a deduction, or a credit, or other
6 elimination of property tax liability.
7 (c) The General Assembly may exempt from property taxation any
8 property in any of the following classes:
9 (1) Property being used for municipal, educational, literary,
10 scientific, religious, or charitable purposes.
11 (2) Tangible personal property other than property being held as
12 an investment.
13 (3) Intangible personal property.
14 (4) Tangible property, including curtilage, a house, or garage,
15 used as a principal place of residence by an:
16 (A) owner of the property;
17 (B) individual who is buying the tangible property under a
18 contract; or
19 (C) individual who has a beneficial interest in the owner of the
20 tangible property.
21 (d) The General Assembly may exempt any motor vehicles, mobile
22 homes (not otherwise exempt under this section), airplanes, boats,
23 trailers, or similar property, provided that an excise tax in lieu of the
24 property tax is substituted therefor.
25 (e) This subsection applies to property taxes first due and payable
26 in 2012 and thereafter. The following definitions apply to subsection
27 (f): throughout this section:
28 (1) "Business personal property" means personal property
29 that is used in a trade or business or otherwise held, used, or
30 otherwise held, used, or consumed in connection with the
31 production of income. The term does not include property
32 held for investment.
33 (1) (2) "Other residential property" means tangible property (other
34 than tangible property described in subsection (c)(4)) that is used
35 for residential purposes.
36 (2) (3) "Agricultural land" means land devoted to agricultural use.
37 (3) (4) "Other real property" means real property that is not
38 tangible property described in subsection (c)(4), is not other
39 residential property, and is not agricultural land.
40 (5) "Qualified homestead" means real property, including
41 curtilage, a house, or garage, used as a principal place of
42 residence by an:
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1 (A) owner of the property who is at least sixty-five (65)
2 years of age;
3 (B) individual who is at least sixty-five (65) years of age
4 and is buying the property under a contract; or
5 (C) individual who is at least sixty-five (65) years of age
6 and has a beneficial interest in the owner of the property.
7 (f) This subsection applies to property taxes first due and payable in
8 2012 and thereafter. The General Assembly shall, by law, limit a
9 taxpayer's property tax liability follows:
10 (1) A taxpayer's property tax liability on tangible property
11 described in subsection (c)(4) may not exceed one percent (1%)
12 of the gross assessed value of the property that is the basis for the
13 determination of property taxes.
14 (2) A taxpayer's property tax liability on other residential property
15 may not exceed two percent (2%) of the gross assessed value of
16 the property that is the basis for the determination of property
17 taxes.
18 (3) A taxpayer's property tax liability on agricultural land may not
19 exceed two percent (2%) of the gross assessed value of the land
20 that is the basis for the determination of property taxes.
21 (4) A taxpayer's property tax liability on other real property may
22 not exceed three percent (3%) of the gross assessed value of the
23 property that is the basis for the determination of property taxes.
24 (5) A taxpayer's property tax liability on personal property (other
25 than personal property that is tangible property described in
26 subsection (c)(4) or personal property that is other residential
27 property) within a particular taxing district may not exceed three
28 percent (3%) of the gross assessed value of the taxpayer's
29 personal property that is the basis for the determination of
30 property taxes within the taxing district.
31 (g) This subsection applies to property taxes first due and payable
32 in 2012 and thereafter. Property taxes imposed after being approved by
33 the voters in a referendum shall not be considered for purposes of
34 calculating the limits to property tax liability under subsection (f).
35 (h) As used in this subsection, "eligible county" means only a
36 county for which the General Assembly determines in 2008 that limits
37 to property tax liability as described in subsection (f) are expected to
38 reduce in 2010 the aggregate property tax revenue that would otherwise
39 be collected by all units of local government and school corporations
40 in the county by at least twenty percent (20%). The General Assembly
41 may, by law, provide that property taxes imposed in an eligible county
42 to pay debt service or make lease payments for bonds or leases issued
2024 SJ 9617/DI 51 4
1 or entered into before July 1, 2008, shall not be considered for purposes
2 of calculating the limits to property tax liability under subsection (f).
3 Such a law may not apply after December 31, 2019.
4 (h) The part of the property tax liability on a qualified
5 homestead that remains after taking into account all deductions,
6 credits, or abatements provided under any law is eliminated. A
7 deduction, credit, abatement, or allocation of revenue that reduces
8 the property tax liability on a qualified homestead may not be
9 changed after December 31, 2023. A deduction, credit, or allocation
10 of revenue that reduces the property tax liability on a qualified
11 homestead using a local revenue source may not be changed after
12 December 31, 2023. The General Assembly shall provide by law for
13 the distribution of a property tax replacement amount to each unit
14 imposing a property tax to replace the lost revenue resulting from
15 the application of this subsection.
16 (i) The part of the property tax liability on business personal
17 property that remains after taking into account all deductions,
18 credits, or abatements provided under any law is eliminated. A
19 deduction, credit, abatement, or allocation of revenue that reduces
20 the property tax liability on business personal property may not be
21 changed after December 31, 2023. A deduction, credit, or allocation
22 of revenue that reduces the property tax liability on business
23 personal property using a local revenue source may not be changed
24 after December 31, 2023. The General Assembly shall provide by
25 law for the distribution of a property tax replacement amount to
26 each unit imposing a property tax to replace the lost revenue
27 resulting from the application of this subsection.
28 SECTION 3. [EFFECTIVE JANUARY 1, 2025] (a) These
29 amendments in this Senate Joint Resolution to Article 10, Section
30 1 of the Constitution of the State of Indiana first apply to the
31 assessment date that occurs in the year that immediately follows
32 the date that the proposed amendments are ratified by a majority
33 of the state's voters voting on the question.
34 (b) If the voters ratify the amendments to the Constitution of the
35 State of Indiana proposed by this joint resolution, this SECTION
36 3 does not become a part of the Constitution of the State of
37 Indiana.
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