Indiana 2025 Regular Session

Indiana House Bill HB1293 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. 1293
4	4	_____
5	5	DIGEST OF INTRODUCED BILL
6	6	Citations Affected: IC 5-20-9.1; IC 6-8-16; IC 6-8.1-1-1.
7	7	Synopsis: Investor ownership of single family residences. Establishes
8	8	the housing down payment assistance fund. Establishes a transfer tax
9	9	equal to 50% of the fair market value of a single family residence for
10	10	each single family residence acquired by an applicable taxpayer after
11	11	the applicable date. Establishes a maximum number of single family
12	12	residences that may be owned by an applicable taxpayer after the
13	13	applicable date for purposes of calculating an annual excise tax on any
14	14	excess single family residences.
15	15	Effective: July 1, 2025.
16	16	Harris
17	17	January 13, 2025, read first time and referred to Committee on Ways and Means.
18	18	2025 IN 1293—LS 6827/DI 129 Introduced
19	19	First Regular Session of the 124th General Assembly (2025)
20	20	PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
21	21	Constitution) is being amended, the text of the existing provision will appear in this style type,
22	22	additions will appear in this style type, and deletions will appear in this style type.
23	23	Additions: Whenever a new statutory provision is being enacted (or a new constitutional
24	24	provision adopted), the text of the new provision will appear in this style type. Also, the
25	25	word NEW will appear in that style type in the introductory clause of each SECTION that adds
26	26	a new provision to the Indiana Code or the Indiana Constitution.
27	27	Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
28	28	between statutes enacted by the 2024 Regular Session of the General Assembly.
29	29	HOUSE BILL No. 1293
30	30	A BILL FOR AN ACT to amend the Indiana Code concerning
31	31	taxation.
32	32	Be it enacted by the General Assembly of the State of Indiana:
33	33	1 SECTION 1. IC 5-20-9.1 IS ADDED TO THE INDIANA CODE
34	34	2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
35	35	3 JULY 1, 2025]:
36	36	4 Chapter 9.1. Housing Down Payment Assistance Fund
37	37	5 Sec. 1. As used in this chapter, "authority" refers to the Indiana
38	38	6 housing and community development authority created by
39	39	7 IC 5-20-1-3.
40	40	8 Sec. 2. As used in this chapter, "fund" refers to the housing
41	41	9 down payment assistance fund established by section 3 of this
42	42	10 chapter.
43	43	11 Sec. 3. (a) The housing down payment assistance fund is
44	44	12 established for the purpose of providing down payment assistance
45	45	13 to buyers purchasing single family residences. The fund shall be
46	46	14 administered by the authority.
47	47	15 (b) The fund consists of:
48	48	16 (1) payments received for taxes imposed under IC 6-8-16-10
49	49	17 and IC 6-8-16-11;
50	50	2025 IN 1293—LS 6827/DI 129 2
51	51	1 (2) payments received for penalties assessed under
52	52	2 IC 6-8-16-15; and
53	53	3 (3) any federal funds received for the purpose of providing
54	54	4 down payment assistance to buyers purchasing single family
55	55	5 residences.
56	56	6 (c) The expenses of administering the fund shall be paid from
57	57	7 money in the fund.
58	58	8 (d) The treasurer of state shall invest the money in the fund not
59	59	9 currently needed to meet the obligations of the fund in the same
60	60	10 manner as other public money may be invested. Interest that
61	61	11 accrues from these investments shall be deposited in the fund.
62	62	12 (e) Money in the fund at the end of a state fiscal year does not
63	63	13 revert to the state general fund.
64	64	14 Sec. 4. (a) Subject to section 5 of this chapter, the authority shall
65	65	15 do the following:
66	66	16 (1) Adopt guidelines to determine standards for awarding
67	67	17 down payment assistance under this chapter.
68	68	18 (2) Prepare and supervise the issuance of public information
69	69	19 concerning the availability of down payment assistance from
70	70	20 the fund.
71	71	21 (3) Prescribe the form for and regulate the submission of
72	72	22 applications for down payment assistance available under this
73	73	23 chapter.
74	74	24 (b) A buyer may apply for down payment assistance in the
75	75	25 manner prescribed by the authority.
76	76	26 Sec. 5. The authority shall give priority in awarding assistance
77	77	27 from the fund to families seeking assistance to purchase a single
78	78	28 family residence that is sold or transferred by an applicable
79	79	29 taxpayer (as defined in IC 6-8-16-4).
80	80	30 Sec. 6. The authority may adopt rules under IC 4-22-2 to
81	81	31 implement this chapter.
82	82	32 SECTION 2. IC 6-8-16 IS ADDED TO THE INDIANA CODE AS
83	83	33 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
84	84	34 1, 2025]:
85	85	35 Chapter 16. Taxes on Excess Single Family Residential Property
86	86	36 Holdings by Certain Entities
87	87	37 Sec. 0.5. The taxes imposed under:
88	88	38 (1) section 10 of this chapter; and
89	89	39 (2) section 11 of this chapter;
90	90	40 are supplemental to and separate from any property taxes imposed
91	91	41 under IC 6-1.1 on property that is also subject to a tax imposed
92	92	42 under this chapter. The taxes described in subdivisions (1) and (2)
93	93	2025 IN 1293—LS 6827/DI 129 3
94	94	1 are listed taxes and are subject to the provisions of IC 6-8.1.
95	95	2 Sec. 1. As used in this chapter, "applicable date" means
96	96	3 December 31, 2025. However, in the case of a hedge fund taxpayer
97	97	4 that was not a hedge fund taxpayer in the preceding taxable year,
98	98	5 the last day of the taxable year in the taxable year immediately
99	99	6 preceding the taxable year in which the taxpayer qualifies as a
100	100	7 hedge fund taxpayer.
101	101	8 Sec. 2. (a) As used in this chapter, "applicable entity" means a
102	102	9 partnership, corporation, or real estate investment trust.
103	103	10 (b) The term does not include:
104	104	11 (1) an organization that is exempt from federal income
105	105	12 taxation under Section 501(c)(3) of the Internal Revenue
106	106	13 Code; or
107	107	14 (2) an organization primarily engaged in the construction or
108	108	15 rehabilitation of single family residences.
109	109	16 Sec. 3. As used in this chapter, "applicable single family
110	110	17 residence" means a single family residence that is acquired on or
111	111	18 before the applicable date.
112	112	19 Sec. 4. As used in this chapter, "applicable taxpayer" means an
113	113	20 applicable entity that:
114	114	21 (1) manages funds pooled from investors; and
115	115	22 (2) is a fiduciary with respect to the investors described in
116	116	23 subdivision (1).
117	117	24 Sec. 5. As used in this chapter, "department" means the
118	118	25 department of state revenue.
119	119	26 Sec. 6. As used in this chapter, "disqualified sale" means any
120	120	27 sale or transfer to:
121	121	28 (1) a corporation or other entity engaged in a trade or
122	122	29 business; or
123	123	30 (2) an individual who owns any other single family residence
124	124	31 at the time of such sale or transfer.
125	125	32 Sec. 7. As used in this chapter, "hedge fund taxpayer" means,
126	126	33 with respect to any taxable year, an applicable taxpayer that has
127	127	34 fifty million dollars ($50,000,000) or more in net value or assets
128	128	35 under its management on any day during the taxable year.
129	129	36 Sec. 8. (a) As used in this chapter, "single family residence"
130	130	37 means a residential property consisting of one (1) to four (4)
131	131	38 dwelling units.
132	132	39 (b) The term does not include:
133	133	40 (1) an unoccupied single family residence acquired through
134	134	41 foreclosure;
135	135	42 (2) a single family residence that is:
136	136	2025 IN 1293—LS 6827/DI 129 4
137	137	1 (A) not rented or leased; and
138	138	2 (B) used as the principal residence of a person who has an
139	139	3 ownership interest in the applicable taxpayer; or
140	140	4 (3) a single family residence constructed, acquired, or
141	141	5 operated with federally appropriated funding sources.
142	142	6 Sec. 9. (a) For purposes of this chapter, an applicable taxpayer
143	143	7 shall be treated as acquiring a single family residence if the
144	144	8 applicable taxpayer acquires a majority ownership interest in the
145	145	9 single family residence, regardless of the percentage of the
146	146	10 ownership interest.
147	147	11 (b) For purposes of this chapter, an applicable taxpayer shall be
148	148	12 treated as owning a single family residence if the applicable
149	149	13 taxpayer owns a majority interest in the single family residence,
150	150	14 regardless of the percentage of the ownership interest.
151	151	15 Sec. 10. Each single family residence acquired by an applicable
152	152	16 taxpayer after the applicable date is subject to a transfer tax equal
153	153	17 to fifty percent (50%) of the fair market value of the single family
154	154	18 residence payable to the department at the time the single family
155	155	19 residence is acquired.
156	156	20 Sec. 11. (a) If the number of applicable single family residences
157	157	21 owned by an applicable taxpayer as of the last day of the taxable
158	158	22 year is more than the maximum permissible units under section 12
159	159	23 of this chapter, the applicable taxpayer is subject to an annual
160	160	24 excise tax equal to the amount determined in STEP FOUR of the
161	161	25 following formula:
162	162	26 STEP ONE: Determine the number of applicable single family
163	163	27 residences owned by the taxpayer as of the last day of the
164	164	28 taxable year.
165	165	29 STEP TWO: Determine the sum of:
166	166	30 (A) zero (0), in the case of a hedge fund taxpayer; or
167	167	31 (B) fifty (50), in the case of any other applicable taxpayer;
168	168	32 plus the maximum permissible units allowed under section 12
169	169	33 of this chapter for the taxable year.
170	170	34 STEP THREE: Subtract the number determined in STEP
171	171	35 TWO from the number determined in STEP ONE.
172	172	36 STEP FOUR: Determine the greater of zero (0) or the product
173	173	37 of:
174	174	38 (A) the number determined in STEP THREE; multiplied
175	175	39 by
176	176	40 (B) fifty thousand dollars ($50,000).
177	177	41 (b) A single family residence that is sold or transferred in a
178	178	42 disqualified sale during a taxable year shall be treated as a single
179	179	2025 IN 1293—LS 6827/DI 129 5
180	180	1 family residence that is owned by the applicable taxpayer as of the
181	181	2 last day of the taxable year.
182	182	3 (c) All persons which are treated as a single employer under
183	183	4 Section 52(a) or Section 52(b) of the Internal Revenue Code shall
184	184	5 be treated as a single applicable taxpayer.
185	185	6 (d) The tax imposed under this section is payable to the
186	186	7 department.
187	187	8 Sec. 12. The maximum permissible units for a taxable year is
188	188	9 calculated as follows:
189	189	10 (1) For the first full taxable year beginning after the
190	190	11 applicable date, the following:
191	191	12 (A) For a hedge fund taxpayer, ninety percent (90%) of the
192	192	13 number of applicable single family residences owned by
193	193	14 the hedge fund taxpayer on the applicable date.
194	194	15 (B) For any other applicable taxpayer, fifty (50) plus ninety
195	195	16 percent (90%) of the number of applicable single family
196	196	17 residences owned by the applicable taxpayer on the
197	197	18 applicable date.
198	198	19 (2) For the second taxable year beginning after the applicable
199	199	20 date, the following:
200	200	21 (A) For a hedge fund taxpayer, eighty percent (80%) of the
201	201	22 number of applicable single family residences owned by
202	202	23 the hedge fund taxpayer on the applicable date.
203	203	24 (B) For any other applicable taxpayer, fifty (50) plus eighty
204	204	25 percent (80%) of the number of applicable single family
205	205	26 residences owned by the applicable taxpayer on the
206	206	27 applicable date.
207	207	28 (3) For the third taxable year beginning after the applicable
208	208	29 date, the following:
209	209	30 (A) For a hedge fund taxpayer, seventy percent (70%) of
210	210	31 the number of applicable single family residences owned
211	211	32 by the hedge fund taxpayer on the applicable date.
212	212	33 (B) For any other applicable taxpayer, fifty (50) plus
213	213	34 seventy percent (70%) of the number of applicable single
214	214	35 family residences owned by the applicable taxpayer on the
215	215	36 applicable date.
216	216	37 (4) For the fourth taxable year beginning after the applicable
217	217	38 date, the following:
218	218	39 (A) For a hedge fund taxpayer, sixty percent (60%) of the
219	219	40 number of applicable single family residences owned by
220	220	41 the hedge fund taxpayer on the applicable date.
221	221	42 (B) For any other applicable taxpayer, fifty (50) plus sixty
222	222	2025 IN 1293—LS 6827/DI 129 6
223	223	1 percent (60%) of the number of applicable single family
224	224	2 residences owned by the applicable taxpayer on the
225	225	3 applicable date.
226	226	4 (5) For the fifth taxable year beginning after the applicable
227	227	5 date, the following:
228	228	6 (A) For a hedge fund taxpayer, fifty percent (50%) of the
229	229	7 number of applicable single family residences owned by
230	230	8 the hedge fund taxpayer on the applicable date.
231	231	9 (B) For any other applicable taxpayer, fifty (50) plus fifty
232	232	10 percent (50%) of the number of applicable single family
233	233	11 residences owned by the applicable taxpayer on the
234	234	12 applicable date.
235	235	13 (6) For the sixth taxable year beginning after the applicable
236	236	14 date, the following:
237	237	15 (A) For a hedge fund taxpayer, forty percent (40%) of the
238	238	16 number of applicable single family residences owned by
239	239	17 the hedge fund taxpayer on the applicable date.
240	240	18 (B) For any other applicable taxpayer, fifty (50) plus forty
241	241	19 percent (40%) of the number of applicable single family
242	242	20 residences owned by the applicable taxpayer on the
243	243	21 applicable date.
244	244	22 (7) For the seventh taxable year beginning after the applicable
245	245	23 date, the following:
246	246	24 (A) For a hedge fund taxpayer, thirty percent (30%) of the
247	247	25 number of applicable single family residences owned by
248	248	26 the hedge fund taxpayer on the applicable date.
249	249	27 (B) For any other applicable taxpayer, fifty (50) plus thirty
250	250	28 percent (30%) of the number of applicable single family
251	251	29 residences owned by the applicable taxpayer on the
252	252	30 applicable date.
253	253	31 (8) For the eighth taxable year beginning after the applicable
254	254	32 date, the following:
255	255	33 (A) For a hedge fund taxpayer, twenty percent (20%) of
256	256	34 the number of applicable single family residences owned
257	257	35 by the hedge fund taxpayer on the applicable date.
258	258	36 (B) For any other applicable taxpayer, fifty (50) plus
259	259	37 twenty percent (20%) of the number of applicable single
260	260	38 family residences owned by the applicable taxpayer on the
261	261	39 applicable date.
262	262	40 (9) For the ninth taxable year beginning after the applicable
263	263	41 date, the following:
264	264	42 (A) For a hedge fund taxpayer, ten percent (10%) of the
265	265	2025 IN 1293—LS 6827/DI 129 7
266	266	1 number of applicable single family residences owned by
267	267	2 the hedge fund taxpayer on the applicable date.
268	268	3 (B) For any other applicable taxpayer, fifty (50) plus ten
269	269	4 percent (10%) of the number of applicable single family
270	270	5 residences owned by the applicable taxpayer on the
271	271	6 applicable date.
272	272	7 (10) For a taxable year beginning more than nine (9) years
273	273	8 after the applicable date, the following:
274	274	9 (A) For a hedge fund taxpayer, zero (0) applicable single
275	275	10 family residences.
276	276	11 (B) For any other applicable taxpayer, fifty (50) applicable
277	277	12 single family residences.
278	278	13 Sec. 13. The amounts collected by the department for:
279	279	14 (1) a tax imposed under sections 10 and 11 of this chapter;
280	280	15 and
281	281	16 (2) a penalty assessed under section 15 of this chapter;
282	282	17 must be deposited into the housing down payment assistance fund
283	283	18 established by IC 5-20-9.1-3.
284	284	19 Sec. 14. (a) The department shall require such reporting as the
285	285	20 department deems necessary or appropriate to carry out the
286	286	21 purposes of this chapter, which must include:
287	287	22 (1) the dates on which single family residences owned by an
288	288	23 applicable taxpayer were acquired by the applicable
289	289	24 taxpayer; and
290	290	25 (2) whether a person acquiring a single family residence from
291	291	26 an applicable taxpayer owns any other single family
292	292	27 residences at the time of the acquisition.
293	293	28 (b) The reporting required under subsection (a)(2) must include
294	294	29 a certification from each person to whom a single family residence
295	295	30 is sold or transferred from an applicable taxpayer. The
296	296	31 certification must be signed by the purchaser or transferee and
297	297	32 state:
298	298	33 (1) the name and address of the purchaser or transferee;
299	299	34 (2) that the sale is not a disqualified sale; and
300	300	35 (3) that the purchaser or transferee will be subject to the
301	301	36 penalty imposed under section 15 of this chapter for any false
302	302	37 certification.
303	303	38 Sec. 15. (a) Except as provided in subsection (b), an applicable
304	304	39 taxpayer that fails to report the information required under section
305	305	40 14 of this chapter or fails to include correct information in a
306	306	41 report, upon the issuance of notice to the applicable taxpayer of the
307	307	42 failure to comply with this subsection, the applicable taxpayer is
308	308	2025 IN 1293—LS 6827/DI 129 8
309	309	1 subject to a penalty of twenty thousand dollars ($20,000) payable
310	310	2 to the department.
311	311	3 (b) A penalty may not be assessed under subsection (a) if it is
312	312	4 shown that an applicable taxpayer's failure to report the
313	313	5 information required under section 14 of this chapter is due to
314	314	6 reasonable cause and not to willful neglect.
315	315	7 (c) Not later than January 31, 2026, the department shall
316	316	8 publish a form on its website to be used for calculating the amount
317	317	9 of tax owed under this chapter.
318	318	10 SECTION 3. IC 6-8.1-1-1, AS AMENDED BY P.L.1-2023,
319	319	11 SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
320	320	12 JULY 1, 2025]: Sec. 1. "Listed taxes" or "taxes" includes only the
321	321	13 pari-mutuel taxes (IC 4-31-9-3 through IC 4-31-9-5); the supplemental
322	322	14 wagering tax (IC 4-33-12); the riverboat wagering tax (IC 4-33-13); the
323	323	15 slot machine wagering tax (IC 4-35-8); the type II gambling game
324	324	16 excise tax (IC 4-36-9); the gross income tax (IC 6-2.1) (repealed); the
325	325	17 utility receipts and utility services use taxes (IC 6-2.3) (repealed); the
326	326	18 state gross retail and use taxes (IC 6-2.5); the adjusted gross income tax
327	327	19 (IC 6-3); the pass through entity tax (IC 6-3-2.1); the supplemental net
328	328	20 income tax (IC 6-3-8) (repealed); the county adjusted gross income tax
329	329	21 (IC 6-3.5-1.1) (repealed); the county option income tax (IC 6-3.5-6)
330	330	22 (repealed); the county economic development income tax (IC 6-3.5-7)
331	331	23 (repealed); the local income tax (IC 6-3.6); the auto rental excise tax
332	332	24 (IC 6-6-9); the financial institutions tax (IC 6-5.5); the gasoline tax (IC
333	333	25 6-6-1.1); the special fuel tax (IC 6-6-2.5); the motor carrier fuel tax (IC
334	334	26 6-6-4.1); a motor fuel tax collected under a reciprocal agreement under
335	335	27 IC 6-8.1-3; the vehicle excise tax (IC 6-6-5); the aviation fuel excise
336	336	28 tax (IC 6-6-13); the commercial vehicle excise tax (IC 6-6-5.5); the
337	337	29 excise tax imposed on recreational vehicles and truck campers (IC
338	338	30 6-6-5.1); the hazardous waste disposal tax (IC 6-6-6.6) (repealed); the
339	339	31 heavy equipment rental excise tax (IC 6-6-15); the vehicle sharing
340	340	32 excise tax (IC 6-6-16); the cigarette tax (IC 6-7-1); the closed system
341	341	33 cartridge tax (IC 6-7-2-7.5); the electronic cigarette tax (IC 6-7-4); the
342	342	34 beer excise tax (IC 7.1-4-2); the liquor excise tax (IC 7.1-4-3); the wine
343	343	35 excise tax (IC 7.1-4-4); the hard cider excise tax (IC 7.1-4-4.5); the
344	344	36 petroleum severance tax (IC 6-8-1); the taxes imposed on excess
345	345	37 single family residential property holdings (IC 6-8-16); the various
346	346	38 innkeeper's taxes (IC 6-9); the various food and beverage taxes (IC
347	347	39 6-9); the county admissions tax (IC 6-9-13 and IC 6-9-28); the oil
348	348	40 inspection fee (IC 16-44-2); the penalties assessed for oversize vehicles
349	349	41 (IC 9-20-3 and IC 9-20-18); the fees and penalties assessed for
350	350	42 overweight vehicles (IC 9-20-4 and IC 9-20-18); and any other tax or
351	351	2025 IN 1293—LS 6827/DI 129 9
352	352	1 fee that the department is required to collect or administer.
353	353	2025 IN 1293—LS 6827/DI 129