Introduced Version
HOUSE BILL No. 1598
_____
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, 2025.
Bauer M
January 21, 2025, read first time and referred to Committee on Ways and Means.
2025 IN 1598—LS 6242/DI 125 Introduced
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE BILL No. 1598
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, 2025]: Sec. 47. (a) This section applies to assessment dates
4 occurring after December 31, 2025.
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 that are intended to maintain the continued
9 affordability of the community land trust improvement, including
10 at least the 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
2025 IN 1598—LS 6242/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 (4) The maximum amount for which the community land trust
7 improvement located on the community land trust land may
8 be sold or transferred.
9 (c) As used in this section, "community land trust" means a
10 nonprofit corporation that meets the following requirements:
11 (1) The nonprofit corporation is exempt from taxation under
12 Section 501(c)(3) of the Internal Revenue Code.
13 (2) A primary purpose of the nonprofit corporation is the
14 creation and maintenance of permanently affordable single
15 family or multi-family residences.
16 (3) The nonprofit corporation leases community land trust
17 land on which a community land trust improvement is located
18 to a qualified owner under a ground lease that provides for
19 the qualified owner's use of the community land trust
20 improvement as the qualified owner's primary place of
21 residence.
22 (d) As used in this section, "community land trust
23 improvement" means a dwelling unit and associated improvements
24 located on community land trust land that is occupied by a
25 qualified owner as the qualified owner's primary place of residence
26 according to the terms of a ground lease.
27 (e) As used in this section, "community land trust land" means
28 land owned by a community land trust for the purposes described
29 in subsection (c)(2) and (c)(3).
30 (f) As used in this section, "ground lease" means a lease entered
31 into between a community land trust and a qualified owner that
32 allows the qualified owner to occupy a community land trust
33 improvement located on community land trust land and includes
34 at least the following:
35 (1) Affordability restrictions.
36 (2) Restrictions for resale or transfer of the community land
37 trust improvement.
38 (3) A provision stating that the community land trust retains
39 an interest in the community land trust land.
40 (4) The initial appraised value of the community land trust
41 improvement at the time the lease is entered into or at the
42 time otherwise specified.
2025 IN 1598—LS 6242/DI 125 3
1 (5) The monthly fee that the qualified owner must pay to the
2 community land trust for use of the community land trust
3 land.
4 (6) A term of ninety-nine (99) years that may be renewed.
5 (g) As used in this section, "qualified owner" means an
6 individual who is a member of a household with annual household
7 income that is not more than eighty percent (80%) of the median
8 household income in the community land trust land's surrounding
9 area, as determined according to the median household income
10 amounts published by the United States Department of Housing
11 and Urban Development at the time the ground lease is entered
12 into.
13 (h) The true tax value of community land trust land in an
14 assessment year is the present value of the long term revenue that
15 will be received from fees required under the ground lease to which
16 the community land trust land is subject.
17 (i) The true tax value of a community land trust improvement
18 in an assessment year that occurs in the first year of a ground lease
19 to which the community land trust improvement is subject is equal
20 to either:
21 (1) the initial appraised value; or
22 (2) a formula price based on a market based index that uses
23 a median income index for income in the county in which the
24 community land trust improvement is located;
25 as set forth in the ground lease.
26 (j) For purposes of making a reassessment of a community land
27 trust improvement under section 4.2 of this chapter or an annual
28 adjustment under section 4.5 of this chapter, the true tax value of
29 a community land trust improvement after the initial assessment
30 under subsection (i) may not exceed the maximum amount for
31 which the community land trust improvement may be sold or
32 transferred as set forth in the affordability restrictions of the
33 ground lease to which the community land trust improvement is
34 subject.
2025 IN 1598—LS 6242/DI 125