Indiana 2025 Regular Session

Indiana House Bill HB1598 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. 1598
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, 2025.
11	11	Bauer M
12	12	January 21, 2025, read first time and referred to Committee on Ways and Means.
13	13	2025 IN 1598—LS 6242/DI 125 Introduced
14	14	First Regular Session of the 124th General Assembly (2025)
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 2024 Regular Session of the General Assembly.
24	24	HOUSE BILL No. 1598
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, 2025]: Sec. 47. (a) This section applies to assessment dates
31	31	4 occurring after December 31, 2025.
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 that are intended to maintain the continued
36	36	9 affordability of the community land trust improvement, including
37	37	10 at least the 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	2025 IN 1598—LS 6242/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 (4) The maximum amount for which the community land trust
52	52	7 improvement located on the community land trust land may
53	53	8 be sold or transferred.
54	54	9 (c) As used in this section, "community land trust" means a
55	55	10 nonprofit corporation that meets the following requirements:
56	56	11 (1) The nonprofit corporation is exempt from taxation under
57	57	12 Section 501(c)(3) of the Internal Revenue Code.
58	58	13 (2) A primary purpose of the nonprofit corporation is the
59	59	14 creation and maintenance of permanently affordable single
60	60	15 family or multi-family residences.
61	61	16 (3) The nonprofit corporation leases community land trust
62	62	17 land on which a community land trust improvement is located
63	63	18 to a qualified owner under a ground lease that provides for
64	64	19 the qualified owner's use of the community land trust
65	65	20 improvement as the qualified owner's primary place of
66	66	21 residence.
67	67	22 (d) As used in this section, "community land trust
68	68	23 improvement" means a dwelling unit and associated improvements
69	69	24 located on community land trust land that is occupied by a
70	70	25 qualified owner as the qualified owner's primary place of residence
71	71	26 according to the terms of a ground lease.
72	72	27 (e) As used in this section, "community land trust land" means
73	73	28 land owned by a community land trust for the purposes described
74	74	29 in subsection (c)(2) and (c)(3).
75	75	30 (f) As used in this section, "ground lease" means a lease entered
76	76	31 into between a community land trust and a qualified owner that
77	77	32 allows the qualified owner to occupy a community land trust
78	78	33 improvement located on community land trust land and includes
79	79	34 at least the following:
80	80	35 (1) Affordability restrictions.
81	81	36 (2) Restrictions for resale or transfer of the community land
82	82	37 trust improvement.
83	83	38 (3) A provision stating that the community land trust retains
84	84	39 an interest in the community land trust land.
85	85	40 (4) The initial appraised value of the community land trust
86	86	41 improvement at the time the lease is entered into or at the
87	87	42 time otherwise specified.
88	88	2025 IN 1598—LS 6242/DI 125 3
89	89	1 (5) The monthly fee that the qualified owner must pay to the
90	90	2 community land trust for use of the community land trust
91	91	3 land.
92	92	4 (6) A term of ninety-nine (99) years that may be renewed.
93	93	5 (g) As used in this section, "qualified owner" means an
94	94	6 individual who is a member of a household with annual household
95	95	7 income that is not more than eighty percent (80%) of the median
96	96	8 household income in the community land trust land's surrounding
97	97	9 area, as determined according to the median household income
98	98	10 amounts published by the United States Department of Housing
99	99	11 and Urban Development at the time the ground lease is entered
100	100	12 into.
101	101	13 (h) The true tax value of community land trust land in an
102	102	14 assessment year is the present value of the long term revenue that
103	103	15 will be received from fees required under the ground lease to which
104	104	16 the community land trust land is subject.
105	105	17 (i) The true tax value of a community land trust improvement
106	106	18 in an assessment year that occurs in the first year of a ground lease
107	107	19 to which the community land trust improvement is subject is equal
108	108	20 to either:
109	109	21 (1) the initial appraised value; or
110	110	22 (2) a formula price based on a market based index that uses
111	111	23 a median income index for income in the county in which the
112	112	24 community land trust improvement is located;
113	113	25 as set forth in the ground lease.
114	114	26 (j) For purposes of making a reassessment of a community land
115	115	27 trust improvement under section 4.2 of this chapter or an annual
116	116	28 adjustment under section 4.5 of this chapter, the true tax value of
117	117	29 a community land trust improvement after the initial assessment
118	118	30 under subsection (i) may not exceed the maximum amount for
119	119	31 which the community land trust improvement may be sold or
120	120	32 transferred as set forth in the affordability restrictions of the
121	121	33 ground lease to which the community land trust improvement is
122	122	34 subject.
123	123	2025 IN 1598—LS 6242/DI 125