Indiana 2025 Regular Session

Indiana House Bill HB1075 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. 1075
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 6-1.1.
7	7	Synopsis: Property taxes. Provides that, for assessments beginning in
8	8	2026, the assessed value of homestead property shall not be subject to
9	9	annual adjustments (trending), but instead shall be determined based
10	10	on the assessed value of the homestead on the January 1, 2025,
11	11	assessment date, the assessed value of the homestead on the first
12	12	assessment date that it becomes homestead property, if it was not a
13	13	homestead on the January 1, 2025, assessment date, or the sales price
14	14	or fair market value of the homestead, if there is a change of ownership
15	15	after January 1, 2025. Increases the amount of the assessed value
16	16	deduction for disabled veterans. Phases in the increase over five years
17	17	from $24,960 under current law to $50,000 for assessments beginning
18	18	in 2030. Provides for a five year phase in of a 100% property tax credit
19	19	for the property tax liability imposed on the homestead of an individual
20	20	who is or will be at least 65 years of age on or before December 31 of
21	21	the calendar year immediately preceding the current calendar year in
22	22	which the individual's property taxes are first due and payable.
23	23	Specifies, beginning with property taxes first due and payable in 2026,
24	24	the annual amounts of the phased in property tax credit for such an
25	25	individual's homestead. Makes conforming changes.
26	26	Effective: Upon passage; July 1, 2025.
27	27	Haggard
28	28	January 8, 2025, read first time and referred to Committee on Ways and Means.
29	29	2025 IN 1075—LS 6563/DI 120 Introduced
30	30	First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
40	40	HOUSE BILL No. 1075
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 6-1.1-4-4.2, AS AMENDED BY P.L.236-2023,
45	45	2 SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
46	46	3 JULY 1, 2025]: Sec. 4.2. (a) The county assessor of each county shall,
47	47	4 before July 1, 2013, and before May 1 of every fourth year thereafter,
48	48	5 prepare and submit to the department of local government finance a
49	49	6 reassessment plan for the county. The following apply to a
50	50	7 reassessment plan prepared and submitted under this section:
51	51	8 (1) The reassessment plan is subject to approval by the
52	52	9 department of local government finance. The department of local
53	53	10 government finance shall complete its review and approval of the
54	54	11 reassessment plan before:
55	55	12 (A) March 1, 2015; and
56	56	13 (B) January 1 of each subsequent year that follows a year in
57	57	14 which the reassessment plan is submitted by the county.
58	58	15 (2) The department of local government finance shall determine
59	59	16 the classes of real property to be used for purposes of this section.
60	60	17 (3) Except as provided in subsection (b), the reassessment plan
61	61	2025 IN 1075—LS 6563/DI 120 2
62	62	1 must divide all parcels of real property in the county into four (4)
63	63	2 different groups of parcels. Each group of parcels must contain
64	64	3 approximately twenty-five percent (25%) of the parcels within
65	65	4 each class of real property in the county.
66	66	5 (4) Except as provided in subsection (b), all real property in each
67	67	6 group of parcels shall be reassessed under the county's
68	68	7 reassessment plan once during each four (4) year cycle.
69	69	8 (5) The reassessment of a group of parcels in a particular class of
70	70	9 real property shall begin on May 1 of a year.
71	71	10 (6) The reassessment of parcels:
72	72	11 (A) must include a physical inspection of each parcel of real
73	73	12 property in the group of parcels that is being reassessed; and
74	74	13 (B) shall be completed on or before January 1 of the year after
75	75	14 the year in which the reassessment of the group of parcels
76	76	15 begins.
77	77	16 (7) For real property included in a group of parcels that is
78	78	17 reassessed, the reassessment is the basis for taxes payable in the
79	79	18 year following the year in which the reassessment is to be
80	80	19 completed.
81	81	20 (8) The reassessment plan must specify the dates by which the
82	82	21 assessor must submit land values under section 13.6 of this
83	83	22 chapter to the county property tax assessment board of appeals.
84	84	23 (9) The department may not approve the reassessment plan until
85	85	24 the assessor provides verification that the land values
86	86	25 determination under section 13.6 of this chapter has been
87	87	26 completed.
88	88	27 (10) Subject to review and approval by the department of local
89	89	28 government finance, the county assessor may modify the
90	90	29 reassessment plan.
91	91	30 (11) The reassessment plan with regard to homestead
92	92	31 property is subject to and must comply with the provisions in
93	93	32 section 4.5(i) of this chapter.
94	94	33 (b) A county may submit a reassessment plan that provides for
95	95	34 reassessing more than twenty-five percent (25%) of all parcels of real
96	96	35 property in the county in a particular year. A plan may provide that all
97	97	36 parcels are to be reassessed in one (1) year. However, a plan must
98	98	37 cover a four (4) year period. All real property in each group of parcels
99	99	38 shall be reassessed under the county's reassessment plan once during
100	100	39 each reassessment cycle.
101	101	40 (c) The reassessment of the first group of parcels under a county's
102	102	41 reassessment plan shall begin on July 1, 2014, and shall be completed
103	103	42 on or before January 1, 2015.
104	104	2025 IN 1075—LS 6563/DI 120 3
105	105	1 (d) The department of local government finance may adopt rules to
106	106	2 govern the reassessment of property under county reassessment plans.
107	107	3 SECTION 2. IC 6-1.1-4-4.5, AS AMENDED BY P.L.8-2022,
108	108	4 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
109	109	5 JULY 1, 2025]: Sec. 4.5. (a) The department of local government
110	110	6 finance shall adopt rules establishing a system for annually adjusting
111	111	7 the assessed value of real property to account for changes in value in
112	112	8 those years since a reassessment under section 4.2 of this chapter for
113	113	9 the property last took effect.
114	114	10 (b) Subject to subsection subsections (f) and (i), the system must
115	115	11 be applied to adjust assessed values beginning with the 2006
116	116	12 assessment date and each year thereafter that is not a year in which a
117	117	13 reassessment under section 4.2 of this chapter for the property becomes
118	118	14 effective.
119	119	15 (c) The rules adopted under subsection (a) must include the
120	120	16 following characteristics in the system:
121	121	17 (1) Promote uniform and equal assessment of real property within
122	122	18 and across classifications.
123	123	19 (2) Require that assessing officials:
124	124	20 (A) reevaluate the factors that affect value;
125	125	21 (B) express the interactions of those factors mathematically;
126	126	22 (C) use mass appraisal techniques to estimate updated property
127	127	23 values within statistical measures of accuracy; and
128	128	24 (D) provide notice to taxpayers of an assessment increase that
129	129	25 results from the application of annual adjustments.
130	130	26 (3) Prescribe procedures that permit the application of the
131	131	27 adjustment percentages in an efficient manner by assessing
132	132	28 officials.
133	133	29 (d) The department of local government finance must review and
134	134	30 certify each annual adjustment determined under this section.
135	135	31 (e) For an assessment beginning after December 31, 2022,
136	136	32 agricultural improvements such as but not limited to barns, grain bins,
137	137	33 or silos on land assessed as agricultural shall not be adjusted using
138	138	34 factors, such as neighborhood delineation, that are appropriate for use
139	139	35 in adjusting residential, commercial, and industrial real property. Those
140	140	36 portions of agricultural parcels that include land and buildings not used
141	141	37 for an agricultural purpose, such as homes, homesites, and excess
142	142	38 residential land and commercial or industrial land and buildings, shall
143	143	39 be adjusted by the factor or factors developed for other similar property
144	144	40 within the geographic stratification. The residential portion of
145	145	41 agricultural properties shall be adjusted by the factors applied to
146	146	42 similar residential purposes.
147	147	2025 IN 1075—LS 6563/DI 120 4
148	148	1 (f) In making the annual determination of the base rate to satisfy the
149	149	2 requirement for an annual adjustment for each assessment date, the
150	150	3 department of local government finance shall not later than March 1 of
151	151	4 each year determine the base rate using the methodology reflected in
152	152	5 Table 2-18 of Book 1, Chapter 2 of the department of local government
153	153	6 finance's Real Property Assessment Guidelines (as in effect on January
154	154	7 1, 2005), except that the department shall adjust the methodology as
155	155	8 follows:
156	156	9 (1) Use a six (6) year rolling average adjusted under subdivision
157	157	10 (3) instead of a four (4) year rolling average.
158	158	11 (2) Use the data from the six (6) most recent years preceding the
159	159	12 year in which the assessment date occurs for which data is
160	160	13 available, before one (1) of those six (6) years is eliminated under
161	161	14 subdivision (3) when determining the rolling average.
162	162	15 (3) Eliminate in the calculation of the rolling average the year
163	163	16 among the six (6) years for which the highest market value in use
164	164	17 of agricultural land is determined.
165	165	18 (4) After determining a preliminary base rate that would apply for
166	166	19 the assessment date without applying the adjustment under this
167	167	20 subdivision, the department of local government finance shall
168	168	21 adjust the preliminary base rate as follows:
169	169	22 (A) If the preliminary base rate for the assessment date would
170	170	23 be at least ten percent (10%) greater than the final base rate
171	171	24 determined for the preceding assessment date, a capitalization
172	172	25 rate of eight percent (8%) shall be used to determine the final
173	173	26 base rate.
174	174	27 (B) If the preliminary base rate for the assessment date would
175	175	28 be at least ten percent (10%) less than the final base rate
176	176	29 determined for the preceding assessment date, a capitalization
177	177	30 rate of six percent (6%) shall be used to determine the final
178	178	31 base rate.
179	179	32 (C) If neither clause (A) nor clause (B) applies, a capitalization
180	180	33 rate of seven percent (7%) shall be used to determine the final
181	181	34 base rate.
182	182	35 (D) In the case of a market value in use for a year that is used
183	183	36 in the calculation of the six (6) year rolling average under
184	184	37 subdivision (1) for purposes of determining the base rate for
185	185	38 the assessment date:
186	186	39 (i) that market value in use shall be recalculated by using the
187	187	40 capitalization rate determined under clauses (A) through (C)
188	188	41 for the calculation of the base rate for the assessment date;
189	189	42 and
190	190	2025 IN 1075—LS 6563/DI 120 5
191	191	1 (ii) the market value in use recalculated under item (i) shall
192	192	2 be used in the calculation of the six (6) year rolling average
193	193	3 under subdivision (1).
194	194	4 (g) For assessment dates after December 31, 2009, an adjustment in
195	195	5 the assessed value of real property under this section shall be based on
196	196	6 the estimated true tax value of the property on the assessment date that
197	197	7 is the basis for taxes payable on that real property.
198	198	8 (h) The department shall release the department's annual
199	199	9 determination of the base rate on or before March 1 of each year.
200	200	10 (i) This subsection applies to assessment dates beginning on
201	201	11 January 1, 2026, and each assessment date thereafter.
202	202	12 Notwithstanding any other provision of this article, property that
203	203	13 is eligible for the homestead standard deduction under
204	204	14 IC 6-1.1-12-37 for an assessment date shall not be subject to an
205	205	15 adjustment of assessed value under this section. Instead, the
206	206	16 assessed value of the homestead shall be determined as:
207	207	17 (1) the assessed value of the homestead on the January 1,
208	208	18 2025, assessment date;
209	209	19 (2) if the property was not eligible for the homestead standard
210	210	20 deduction on the January 1, 2025, assessment date, the
211	211	21 assessed value of the homestead on the first assessment date
212	212	22 that the property becomes eligible for the homestead standard
213	213	23 deduction after January 1, 2025;
214	214	24 (3) the sales price of the homestead, if there is a change of
215	215	25 ownership of a homestead by sale after January 1, 2025; or
216	216	26 (4) the market value of the homestead, if there is a change of
217	217	27 ownership of a homestead by gift, bequest, or other
218	218	28 disposition after January 1, 2025.
219	219	29 The assessed value determination under subdivisions (3) and (4)
220	220	30 shall apply for the assessment date immediately succeeding the
221	221	31 date of the change of ownership, after which, if the property is no
222	222	32 longer eligible for the homestead standard deduction, the property
223	223	33 shall be subject to an adjustment of assessed value under this
224	224	34 section.
225	225	35 SECTION 3. IC 6-1.1-12-13, AS AMENDED BY P.L.293-2013(ts),
226	226	36 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
227	227	37 JULY 1, 2025]: Sec. 13. (a) Except as provided in section 40.5 of this
228	228	38 chapter, an individual may have twenty-four thousand nine hundred
229	229	39 sixty dollars ($24,960) the amount determined under subsection (e)
230	230	40 deducted from the assessed value of the taxable tangible property that
231	231	41 the individual owns, or real property, a mobile home not assessed as
232	232	42 real property, or a manufactured home not assessed as real property
233	233	2025 IN 1075—LS 6563/DI 120 6
234	234	1 that the individual is buying under a contract that provides that the
235	235	2 individual is to pay property taxes on the real property, mobile home,
236	236	3 or manufactured home, if the contract or a memorandum of the contract
237	237	4 is recorded in the county recorder's office and if:
238	238	5 (1) the individual served in the military or naval forces of the
239	239	6 United States during any of its wars;
240	240	7 (2) the individual received an honorable discharge;
241	241	8 (3) the individual has a disability with a service connected
242	242	9 disability of ten percent (10%) or more;
243	243	10 (4) the individual's disability is evidenced by:
244	244	11 (A) a pension certificate, an award of compensation, or a
245	245	12 disability compensation check issued by the United States
246	246	13 Department of Veterans Affairs; or
247	247	14 (B) a certificate of eligibility issued to the individual by the
248	248	15 Indiana department of veterans' affairs after the Indiana
249	249	16 department of veterans' affairs has determined that the
250	250	17 individual's disability qualifies the individual to receive a
251	251	18 deduction under this section; and
252	252	19 (5) the individual:
253	253	20 (A) owns the real property, mobile home, or manufactured
254	254	21 home; or
255	255	22 (B) is buying the real property, mobile home, or manufactured
256	256	23 home under contract;
257	257	24 on the date the statement required by section 15 of this chapter is
258	258	25 filed.
259	259	26 (b) The surviving spouse of an individual may receive the deduction
260	260	27 provided by this section if the individual satisfied the requirements of
261	261	28 subsection (a)(1) through (a)(4) at the time of death and the surviving
262	262	29 spouse satisfies the requirement of subsection (a)(5) at the time the
263	263	30 deduction statement is filed. The surviving spouse is entitled to the
264	264	31 deduction regardless of whether the property for which the deduction
265	265	32 is claimed was owned by the deceased veteran or the surviving spouse
266	266	33 before the deceased veteran's death.
267	267	34 (c) One who receives the deduction provided by this section may not
268	268	35 receive the deduction provided by section 16 of this chapter. However,
269	269	36 the individual may receive any other property tax deduction which the
270	270	37 individual is entitled to by law.
271	271	38 (d) An individual who has sold real property, a mobile home not
272	272	39 assessed as real property, or a manufactured home not assessed as real
273	273	40 property to another person under a contract that provides that the
274	274	41 contract buyer is to pay the property taxes on the real property, mobile
275	275	42 home, or manufactured home may not claim the deduction provided
276	276	2025 IN 1075—LS 6563/DI 120 7
277	277	1 under this section against that real property, mobile home, or
278	278	2 manufactured home.
279	279	3 (e) The amount of the deduction under this section is as follows:
280	280	4 (1) For assessments before January 1, 2026, twenty-four
281	281	5 thousand nine hundred sixty dollars ($24,960).
282	282	6 (2) For assessments made in 2026, thirty thousand dollars
283	283	7 ($30,000).
284	284	8 (3) For assessments made in 2027, thirty-five thousand dollars
285	285	9 ($35,000).
286	286	10 (4) For assessments made in 2028, forty thousand dollars
287	287	11 ($40,000).
288	288	12 (5) For assessments made in 2029, forty-five thousand dollars
289	289	13 ($45,000).
290	290	14 (6) For assessments made in 2030, and for assessments made
291	291	15 in each taxable year thereafter, fifty thousand dollars
292	292	16 ($50,000).
293	293	17 SECTION 4. IC 6-1.1-20.6-3, AS AMENDED BY P.L.197-2016,
294	294	18 SECTION 17, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
295	295	19 UPON PASSAGE]: Sec. 3. As used in this chapter, "property tax
296	296	20 liability" means for purposes of: the following:
297	297	21 (1) For purposes of this chapter, other than section 8.5 of this
298	298	22 chapter (before its expiration), liability for the tax imposed on
299	299	23 property under this article determined after application of all
300	300	24 credits and deductions under this article or IC 6-3.6, except the
301	301	25 credit under this chapter, but does not include any interest or
302	302	26 penalty imposed under this article. and
303	303	27 (2) For purposes of section 8.5 of this chapter (before its
304	304	28 expiration), liability for the tax imposed on property under this
305	305	29 article determined after application of all credits and deductions
306	306	30 under this article or IC 6-3.6, including the credit granted by
307	307	31 section 7 or 7.5 of this chapter, but not including the credit
308	308	32 granted under section 8.5 of this chapter (before its expiration)
309	309	33 or any interest or penalty imposed under this article.
310	310	34 (3) For purposes of section 8.6 of this chapter, liability for the
311	311	35 tax imposed on property under this article determined after
312	312	36 application of all credits and deductions under this article or
313	313	37 IC 6-3.6, including the credit granted by section 7 or 7.5 of
314	314	38 this chapter and, if applicable, the credit granted under
315	315	39 section 8.5 of this chapter (before its expiration) but not
316	316	40 including any interest or penalty imposed under this article.
317	317	41 SECTION 5. IC 6-1.1-20.6-8, AS AMENDED BY P.L.146-2008,
318	318	42 SECTION 224, IS AMENDED TO READ AS FOLLOWS
319	319	2025 IN 1075—LS 6563/DI 120 8
320	320	1 [EFFECTIVE UPON PASSAGE]: Sec. 8. Except as provided in section
321	321	2 sections 8.5 (before its expiration) and 8.6 of this chapter, a person
322	322	3 is not required to file an application for the credit under this chapter.
323	323	4 The county auditor shall:
324	324	5 (1) identify the property in the county eligible for the credit under
325	325	6 this chapter; and
326	326	7 (2) apply the credit under this chapter to property tax liability on
327	327	8 the identified property.
328	328	9 SECTION 6. IC 6-1.1-20.6-8.5, AS AMENDED BY P.L.239-2023,
329	329	10 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
330	330	11 UPON PASSAGE]: Sec. 8.5. (a) This section applies to an individual
331	331	12 who:
332	332	13 (1) qualified for a standard deduction granted under
333	333	14 IC 6-1.1-12-37 for the individual's homestead property in the
334	334	15 immediately preceding calendar year (or was married at the time
335	335	16 of death to a deceased spouse who qualified for a standard
336	336	17 deduction granted under IC 6-1.1-12-37 for the individual's
337	337	18 homestead property in the immediately preceding calendar year);
338	338	19 (2) qualifies for a standard deduction granted under
339	339	20 IC 6-1.1-12-37 for the same homestead property in the current
340	340	21 calendar year;
341	341	22 (3) is or will be at least sixty-five (65) years of age on or before
342	342	23 December 31 of the calendar year immediately preceding the
343	343	24 current calendar year; and
344	344	25 (4) had:
345	345	26 (A) in the case of an individual who filed a single return,
346	346	27 adjusted gross income (as defined in Section 62 of the Internal
347	347	28 Revenue Code) not exceeding thirty thousand dollars
348	348	29 ($30,000), and beginning for the January 1, 2023, assessment
349	349	30 date, and each assessment date thereafter, adjusted annually by
350	350	31 an amount equal to the percentage cost of living increase
351	351	32 applied for Social Security benefits for the immediately
352	352	33 preceding calendar year; or
353	353	34 (B) in the case of an individual who filed a joint income tax
354	354	35 return with the individual's spouse, combined adjusted gross
355	355	36 income (as defined in Section 62 of the Internal Revenue
356	356	37 Code) not exceeding forty thousand dollars ($40,000), and
357	357	38 beginning for the January 1, 2023, assessment date, and each
358	358	39 assessment date thereafter, adjusted annually by an amount
359	359	40 equal to the percentage cost of living increase applied for
360	360	41 Social Security benefits for the immediately preceding
361	361	42 calendar year;
362	362	2025 IN 1075—LS 6563/DI 120 9
363	363	1 for the calendar year preceding by two (2) years the calendar year
364	364	2 in which property taxes are first due and payable.
365	365	3 For purposes of applying the annual cost of living increases described
366	366	4 in subdivision (4)(A) and (4)(B), the annual percentage increase is
367	367	5 applied to the adjusted amount of income from the immediately
368	368	6 preceding year.
369	369	7 (b) Except as provided in subsection (g), this section does not apply
370	370	8 if:
371	371	9 (1) for an individual who received a credit under this section
372	372	10 before January 1, 2020, the gross assessed value of the homestead
373	373	11 on the assessment date for which property taxes are imposed is at
374	374	12 least two hundred thousand dollars ($200,000);
375	375	13 (2) for an individual who initially applies for a credit under this
376	376	14 section after December 31, 2019, and before January 1, 2023, the
377	377	15 assessed value of the individual's Indiana real property is at least
378	378	16 two hundred thousand dollars ($200,000); or
379	379	17 (3) for an individual who initially applies for a credit under this
380	380	18 section after December 31, 2022, the assessed value of the
381	381	19 individual's Indiana real property is at least two hundred forty
382	382	20 thousand dollars ($240,000).
383	383	21 (c) An individual is entitled to an additional credit under this section
384	384	22 for property taxes first due and payable for a calendar year on a
385	385	23 homestead if:
386	386	24 (1) the individual and the homestead qualify for the credit under
387	387	25 subsection (a) for the calendar year;
388	388	26 (2) the homestead is not disqualified for the credit under
389	389	27 subsection (b) for the calendar year; and
390	390	28 (3) the filing requirements under subsection (e) are met.
391	391	29 (d) The amount of the credit is equal to the greater of zero (0) or the
392	392	30 result of:
393	393	31 (1) the property tax liability first due and payable on the
394	394	32 homestead property for the calendar year; minus
395	395	33 (2) the result of:
396	396	34 (A) the property tax liability first due and payable on the
397	397	35 qualified homestead property for the immediately preceding
398	398	36 year after the application of the credit granted under this
399	399	37 section for that year; multiplied by
400	400	38 (B) one and two hundredths (1.02).
401	401	39 However, property tax liability imposed on any improvements to or
402	402	40 expansion of the homestead property after the assessment date for
403	403	41 which property tax liability described in subdivision (2) was imposed
404	404	42 shall not be considered in determining the credit granted under this
405	405	2025 IN 1075—LS 6563/DI 120 10
406	406	1 section in the current calendar year.
407	407	2 (e) Applications for a credit under this section shall be filed in the
408	408	3 manner provided for an application for a deduction under
409	409	4 IC 6-1.1-12-9. However, an individual who remains eligible for the
410	410	5 credit in the following year is not required to file a statement to apply
411	411	6 for the credit in the following year. An individual who receives a credit
412	412	7 under this section in a particular year and who becomes ineligible for
413	413	8 the credit in the following year shall notify the auditor of the county in
414	414	9 which the homestead is located of the individual's ineligibility not later
415	415	10 than sixty (60) days after the individual becomes ineligible.
416	416	11 (f) The auditor of each county shall, in a particular year, apply a
417	417	12 credit provided under this section to each individual who received the
418	418	13 credit in the preceding year unless the auditor determines that the
419	419	14 individual is no longer eligible for the credit.
420	420	15 (g) For purposes of determining the:
421	421	16 (1) assessed value of the homestead on the assessment date for
422	422	17 which property taxes are imposed under subsection (b)(1);
423	423	18 (2) assessed value of the individual's Indiana real property under
424	424	19 subsection (b)(2); or
425	425	20 (3) assessed value of the individual's Indiana real property under
426	426	21 subsection (b)(3);
427	427	22 for an individual who has received a credit under this section in a
428	428	23 previous year, increases in assessed value that occur after the later of
429	429	24 December 31, 2019, or the first year that the individual has received
430	430	25 the credit are not considered unless the increase in assessed value is
431	431	26 attributable to substantial renovation or new improvements. Where
432	432	27 there is an increase in assessed value for purposes of the credit under
433	433	28 this section, the assessor shall provide a report to the county auditor
434	434	29 describing the substantial renovation or new improvements, if any, that
435	435	30 were made to the property prior to the increase in assessed value.
436	436	31 (h) This section expires December 31, 2029.
437	437	32 SECTION 7. IC 6-1.1-20.6-8.6 IS ADDED TO THE INDIANA
438	438	33 CODE AS A NEW SECTION TO READ AS FOLLOWS
439	439	34 [EFFECTIVE UPON PASSAGE]: Sec. 8.6. (a) This section applies to
440	440	35 property taxes first due and payable after December 31, 2025, for
441	441	36 an individual who:
442	442	37 (1) qualified for a standard deduction granted under
443	443	38 IC 6-1.1-12-37 for the individual's homestead property in the
444	444	39 immediately preceding calendar year (or was married at the
445	445	40 time of death to a deceased spouse who qualified for a
446	446	41 standard deduction granted under IC 6-1.1-12-37 for the
447	447	42 individual's homestead property in the immediately preceding
448	448	2025 IN 1075—LS 6563/DI 120 11
449	449	1 calendar year);
450	450	2 (2) qualifies for a standard deduction granted under
451	451	3 IC 6-1.1-12-37 for the same homestead property in the
452	452	4 current calendar year; and
453	453	5 (3) is or will be at least sixty-five (65) years of age on or before
454	454	6 December 31 of the calendar year immediately preceding the
455	455	7 current calendar year.
456	456	8 (b) An individual is entitled to an additional credit under this
457	457	9 section for property taxes first due and payable for a calendar year
458	458	10 on a homestead if the individual and the homestead qualify for the
459	459	11 credit under subsection (a) for the calendar year.
460	460	12 (c) The amount of the credit is equal to the following
461	461	13 percentage:
462	462	14 (1) For property taxes first due and payable in 2026, an
463	463	15 amount equal to twenty percent (20%) of the property tax
464	464	16 liability imposed on the individual's homestead property.
465	465	17 (2) For property taxes first due and payable in 2027, an
466	466	18 amount equal to forty percent (40%) of the property tax
467	467	19 liability imposed on the individual's homestead property.
468	468	20 (3) For property taxes first due and payable in 2028, an
469	469	21 amount equal to sixty percent (60%) of the property tax
470	470	22 liability imposed on the individual's homestead property.
471	471	23 (4) For property taxes first due and payable in 2029, an
472	472	24 amount equal to eighty percent (80%) of the property tax
473	473	25 liability imposed on the individual's homestead property.
474	474	26 (5) For property taxes first due and payable in 2030 and for
475	475	27 each year thereafter, an amount equal to one hundred percent
476	476	28 (100%) of the property tax liability imposed on the
477	477	29 individual's homestead property.
478	478	30 (d) An individual may claim the credit provided by this section
479	479	31 on a form prescribed by the department. The department may
480	480	32 modify an existing form or prescribe a new form on which the
481	481	33 individual may claim the credit.
482	482	34 (e) The auditor of each county shall, in a particular year, apply
483	483	35 a credit provided under this section to each individual who
484	484	36 received the credit in the preceding year.
485	485	37 SECTION 8. IC 6-1.1-36-17, AS AMENDED BY P.L.85-2017,
486	486	38 SECTION 21, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
487	487	39 UPON PASSAGE]: Sec. 17. (a) As used in this section, "nonreverting
488	488	40 fund" refers to a nonreverting fund established under subsection (d).
489	489	41 (b) If a county auditor makes a determination that property was not
490	490	42 eligible for a standard deduction under IC 6-1.1-12-37 in a particular
491	491	2025 IN 1075—LS 6563/DI 120 12
492	492	1 year within three (3) years after the date on which taxes for the
493	493	2 particular year are first due, the county auditor may issue a notice of
494	494	3 taxes, interest, and penalties due to the owner that improperly received
495	495	4 the standard deduction and include a statement that the payment is to
496	496	5 be made payable to the county auditor. The additional taxes and civil
497	497	6 penalties that result from the removal of the deduction, if any, are
498	498	7 imposed for property taxes first due and payable for an assessment date
499	499	8 occurring before the earlier of the date of the notation made under
500	500	9 subsection (c)(2)(A) or the date a notice of an ineligible homestead lien
501	501	10 is recorded under subsection (e)(2) in the office of the county recorder.
502	502	11 The notice must require full payment of the amount owed within:
503	503	12 (1) one (1) year with no penalties and interest, if:
504	504	13 (A) the taxpayer did not comply with the requirement to return
505	505	14 the homestead verification form under IC 6-1.1-22-8.1(b)(9)
506	506	15 (expired January 1, 2015); and
507	507	16 (B) the county auditor allowed the taxpayer to receive the
508	508	17 standard deduction in error; or
509	509	18 (2) thirty (30) days, if subdivision (1) does not apply.
510	510	19 With respect to property subject to a determination made under this
511	511	20 subsection that is owned by a bona fide purchaser without knowledge
512	512	21 of the determination, no lien attaches for any additional taxes and civil
513	513	22 penalties that result from the removal of the deduction.
514	514	23 (c) If a county auditor issues a notice of taxes, interest, and penalties
515	515	24 due to an owner under subsection (b), the county auditor shall:
516	516	25 (1) notify the county treasurer of the determination; and
517	517	26 (2) do one (1) or more of the following:
518	518	27 (A) Make a notation on the tax duplicate that the property is
519	519	28 ineligible for the standard deduction and indicate the date the
520	520	29 notation is made.
521	521	30 (B) Record a notice of an ineligible homestead lien under
522	522	31 subsection (e)(2).
523	523	32 (d) Each county auditor shall establish a nonreverting fund. Upon
524	524	33 collection of the adjustment in tax due (and any interest and penalties
525	525	34 on that amount) after the termination of a deduction or credit as
526	526	35 specified in subsection (b), the county treasurer shall deposit that
527	527	36 amount:
528	528	37 (1) in the nonreverting fund, if the county contains a consolidated
529	529	38 city; or
530	530	39 (2) if the county does not contain a consolidated city:
531	531	40 (A) in the nonreverting fund, to the extent that the amount
532	532	41 collected, after deducting the direct cost of any contract,
533	533	42 including contract related expenses, under which the
534	534	2025 IN 1075—LS 6563/DI 120 13
535	535	1 contractor is required to identify homestead deduction
536	536	2 eligibility, does not cause the total amount deposited in the
537	537	3 nonreverting fund under this subsection for the year during
538	538	4 which the amount is collected to exceed one hundred thousand
539	539	5 dollars ($100,000); or
540	540	6 (B) in the county general fund, to the extent that the amount
541	541	7 collected exceeds the amount that may be deposited in the
542	542	8 nonreverting fund under clause (A).
543	543	9 (e) Any part of the amount due under subsection (b) that is not
544	544	10 collected by the due date is subject to collection under one (1) or more
545	545	11 of the following:
546	546	12 (1) After being placed on the tax duplicate for the affected
547	547	13 property and collected in the same manner as other property taxes.
548	548	14 (2) Through a notice of an ineligible homestead lien recorded in
549	549	15 the county recorder's office without charge.
550	550	16 The adjustment in tax due (and any interest and penalties on that
551	551	17 amount) after the termination of a deduction or credit as specified in
552	552	18 subsection (b) shall be deposited as specified in subsection (d) only in
553	553	19 the first year in which that amount is collected. Upon the collection of
554	554	20 the amount due under subsection (b) or the release of a lien recorded
555	555	21 under subdivision (2), the county auditor shall submit the appropriate
556	556	22 documentation to the county recorder, who shall amend the information
557	557	23 recorded under subdivision (2) without charge to indicate that the lien
558	558	24 has been released or the amount has been paid in full.
559	559	25 (f) The amount to be deposited in the nonreverting fund or the
560	560	26 county general fund under subsection (d) includes adjustments in the
561	561	27 tax due as a result of the termination of deductions or credits available
562	562	28 only for property that satisfies the eligibility for a standard deduction
563	563	29 under IC 6-1.1-12-37, including the following:
564	564	30 (1) Supplemental deductions under IC 6-1.1-12-37.5.
565	565	31 (2) Homestead credits under IC 6-1.1-20.4, IC 6-3.6-5,
566	566	32 IC 6-3.6-11-3, or any other law.
567	567	33 (3) Credit for excessive property taxes under any of the
568	568	34 following:
569	569	35 (A) IC 6-1.1-20.6-7.5. or
570	570	36 (B) IC 6-1.1-20.6-8.5 (before its expiration).
571	571	37 (C) IC 6-1.1-20.6-8.6.
572	572	38 Any amount paid that exceeds the amount required to be deposited
573	573	39 under subsection (d)(1) or (d)(2) shall be distributed as property taxes.
574	574	40 (g) Money deposited under subsection (d)(1) or (d)(2) shall be
575	575	41 treated as miscellaneous revenue. Distributions shall be made from the
576	576	42 nonreverting fund established under this section upon appropriation by
577	577	2025 IN 1075—LS 6563/DI 120 14
578	578	1 the county fiscal body and shall be made only for the following
579	579	2 purposes:
580	580	3 (1) Fees and other costs incurred by the county auditor to discover
581	581	4 property that is eligible for a standard deduction under
582	582	5 IC 6-1.1-12-37.
583	583	6 (2) Other expenses of the office of the county auditor.
584	584	7 The amount of deposits in a reverting fund, the balance of a
585	585	8 nonreverting fund, and expenditures from a reverting fund may not be
586	586	9 considered in establishing the budget of the office of the county auditor
587	587	10 or in setting property tax levies that will be used in any part to fund the
588	588	11 office of the county auditor.
589	589	12 SECTION 9. IC 6-1.1-49-6, AS ADDED BY P.L.95-2023,
590	590	13 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
591	591	14 UPON PASSAGE]: Sec. 6. (a) A qualified individual who desires to
592	592	15 claim the credit under this chapter must apply for the credit by filing a
593	593	16 certified statement on forms prescribed by the department of local
594	594	17 government finance with the county auditor. However, a qualified
595	595	18 individual who remains eligible for the credit in the following year is
596	596	19 not required to file a statement to apply for the credit in the following
597	597	20 year.
598	598	21 (b) An individual who has a credit provided under this chapter
599	599	22 applied to the individual's property tax liability in a particular calendar
600	600	23 year may not also have a credit under IC 6-1.1-20.6-8.5 (before its
601	601	24 expiration) or IC 6-1.1-20.6-8.6 applied to the individual's property
602	602	25 tax liability in the same calendar year.
603	603	26 (c) Not more than one (1) credit may be claimed under this chapter
604	604	27 with respect to a particular homestead by any qualified individual.
605	605	28 SECTION 10. [EFFECTIVE UPON PASSAGE] (a)
606	606	29 IC 6-1.1-20.6-3, IC 6-1.1-20.6-8, IC 6-1.1-20.6-8.5, IC 6-1.1-36-17,
607	607	30 and IC 6-1.1-49-6, all as amended by this act, apply to property
608	608	31 taxes first due and payable after December 31, 2025.
609	609	32 (b) IC 6-1.1-20.6-8.6, as added by this act, applies to property
610	610	33 taxes first due and payable after December 31, 2025.
611	611	34 (c) This SECTION expires December 31, 2029.
612	612	35 SECTION 11. An emergency is declared for this act.
613	613	2025 IN 1075—LS 6563/DI 120