Introduced Version
SENATE BILL No. 6
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-51.3.
Synopsis: Property tax deferral program. Authorizes a county fiscal
body to adopt an ordinance to establish a property tax payment deferral
program (program). Provides that a qualified individual participating
in the program may defer the payment of part of the property taxes that
would otherwise be due on a homestead. Defines "qualified
individual". Provides that property taxes deferred under the program
are due after the occurrence of a deferral termination event. Provides
that the maximum amount of taxes that may be deferred cumulatively
year over year may not exceed $10,000.
Effective: July 1, 2025.
Rogers, Holdman, Buchanan,
Gaskill
January 14, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025 IN 6—LS 6835/DI 120 Introduced
First Regular Session of the 124th General Assembly (2025)
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SENATE BILL No. 6
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 6-1.1-51.3 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]:
4 Chapter 51.3. County Option Homestead Property Tax Deferral
5 Program
6 Sec. 1. As used in this chapter, "homestead" means a homestead
7 as defined in IC 6-1.1-12-37.
8 Sec. 2. As used in this chapter, "homestead property tax
9 liability" refers to a liability for property taxes:
10 (1) that are assessed on tangible property that is a homestead;
11 and
12 (2) that would be first due and payable in a certain year if the
13 property taxes were not deferred under this chapter.
14 The term refers to a property tax liability after the application of
15 all deductions and credits for which the homestead is eligible.
16 Sec. 3. As used in this chapter, "property taxes" refers to ad
17 valorem property taxes. The term does not include fees or charges
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1 that are included by law on a tax statement issued under
2 IC 6-1.1-22-8.1 or IC 6-1.1-22.5.
3 Sec. 4. As used in this chapter, "qualified individual" means an
4 individual who:
5 (1) has a qualified interest in a homestead on the assessment
6 date for which homestead property tax liability is imposed;
7 (2) has owned the homestead for at least five (5) years before
8 first applying for a deferral of homestead property tax
9 liability;
10 (3) uses the homestead in which the individual has a qualified
11 interest as the individual's principal place of residence. An
12 individual shall be treated as using a homestead as the
13 individual's principal place of residence if the individual:
14 (A) is absent from the homestead while in a health care
15 facility (as defined in IC 16-18-2-161 or IC 16-28-13-0.5)
16 for which payment is received from the United States
17 Department of Health and Human Services for the
18 individual's care; but
19 (B) used the homestead as the individual's principal place
20 of residence immediately before being admitted to a health
21 care facility (as defined in IC 16-18-2-161 or
22 IC 16-28-13-0.5);
23 (4) is not delinquent in the payment of any property taxes,
24 special assessments, or fees or charges that are included by
25 law on a tax statement issued under IC 6-1.1-22-8.1 or
26 IC 6-1.1-22.5; and
27 (5) meets any other qualifications that a county may choose to
28 require in an ordinance adopted under this chapter, which
29 may include:
30 (A) an age requirement for seniors;
31 (B) an assessed value limitation (such as an assessed value
32 limit of three hundred thousand dollars ($300,000));
33 (C) veteran status; or
34 (D) an income based limitation.
35 Sec. 5. As used in this chapter, "qualified interest" means the
36 following:
37 (1) An ownership interest in a homestead.
38 (2) An interest in a contract for the purchase of a homestead
39 that:
40 (A) is recorded in the county recorder's office; and
41 (B) provides that a person purchasing the homestead is to
42 pay the property taxes on the homestead.
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1 Sec. 6. (a) A county fiscal body may adopt an ordinance to
2 establish a homestead property tax deferral program to be
3 administered by the county treasurer as provided in this chapter.
4 (b) An ordinance adopted under this section must apply to all of
5 the territory of the county and allow a qualified individual to apply
6 for and receive deferral of the qualified individual's homestead
7 property tax liability as set forth in this chapter.
8 Sec. 7. (a) Beginning with property taxes first due and payable
9 in 2026, a qualified individual in a county with a homestead
10 property tax deferral program may apply to the county assessor to
11 defer the due date for the qualified individual's homestead
12 property tax liability as permitted under this chapter.
13 (b) A qualified individual may defer at least one hundred dollars
14 ($100), but not more than five hundred dollars ($500), of the
15 qualified individual's homestead property tax liability in a given
16 calendar year.
17 (c) Except as provided in subsections (d) and (f), amounts
18 deferred under this chapter for prior years may continue to
19 accumulate until the delayed due date under this chapter.
20 (d) A qualified individual may not defer more than ten thousand
21 dollars ($10,000) of the qualified individual's homestead property
22 tax liability over consecutive years.
23 (e) The county treasurer may accrue interest on a qualified
24 individual's deferred tax balance amount not to exceed four
25 percent (4%) beginning on the date of the deferral.
26 (f) No deferral of homestead property tax liability shall be
27 granted if the total amount of deferred taxes under this chapter
28 plus the total amount of all other liens on the homestead property
29 plus the outstanding principal on all mortgages on the homestead
30 property exceeds one hundred percent (100%) of the homestead's
31 assessed value.
32 Sec. 8. (a) Before October 1, 2025, the department of local
33 government finance shall prescribe and make available to the
34 public a tax deferral loan application and agreement that must be
35 used for purposes of this chapter.
36 (b) A qualified individual wishing to obtain a deferral of
37 homestead property tax liability for a calendar year must file with
38 the county auditor a completed loan application on or before
39 January 5 of the calendar year in which the property taxes are first
40 due and payable and enter into a tax deferral agreement with the
41 county auditor before March 1 of that year.
42 (c) An application for a deferral must be filed with the county
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1 auditor in the county where the homestead is located. Upon the
2 filing of an application, the county auditor shall immediately:
3 (1) notify the county treasurer and transmit the information
4 that the county treasurer needs to match the application with
5 the county treasurer's records related to the homestead; and
6 (2) review the application to determine:
7 (A) whether the applicant qualifies for a deferral; and
8 (B) the amount that may be deferred.
9 (d) After an initial application, an applicant remains eligible for
10 a deferral in subsequent years so long as the applicant continues to
11 meet the eligibility requirements for deferral under this chapter.
12 Sec. 9. (a) If the applicant is qualified for a deferral, the county
13 auditor shall:
14 (1) approve the deferral in the lesser of:
15 (A) the amount requested by the applicant, which may not
16 be less than one hundred dollars ($100); or
17 (B) the maximum amount, which is five hundred dollars
18 ($500);
19 (2) provide for the recording of the deferral in the county
20 recorder's office specifying the amount of property tax
21 deferred; and
22 (3) notify the county treasurer and the department of local
23 government finance of the amount deferred.
24 (b) An applicant must enter into a tax deferral agreement with
25 the county assessor for each year that homestead property taxes
26 are deferred under this chapter.
27 (c) The recording of a deferral in the county recorder's office
28 shall constitute a lien on the homestead property.
29 Sec. 10. (a) Property taxes deferred under this chapter are due
30 and payable one hundred eighty (180) days after the date on which
31 a deferral termination event occurs.
32 (b) Subject to subsection (c), a deferral termination event occurs
33 on the earliest of the following dates:
34 (1) The first date on which the qualified individual who had a
35 qualified interest in the homestead when the property taxes
36 were deferred:
37 (A) ceases to use the homestead as the individual's
38 principal place of residence as provided in section 4(3) of
39 this chapter; or
40 (B) no longer has a qualified interest in the homestead.
41 (2) The date of the death of the qualified individual who had
42 a qualified interest in the homestead when property taxes
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1 were deferred.
2 (c) This subsection applies only to a surviving spouse who was
3 not a qualified individual on the date on which property taxes were
4 deferred. If a deceased individual was a qualified individual on the
5 date on which property taxes were deferred, the deceased
6 individual's surviving spouse shall be treated after the deceased
7 individual's death as if the surviving spouse had been a qualified
8 individual on the date on which property taxes were deferred if:
9 (1) the homestead was the surviving spouse's principal place
10 of residence when the deceased qualified individual died; and
11 (2) the surviving spouse has a qualified interest in the
12 homestead not later than the later of:
13 (A) the date of the deceased individual's death; or
14 (B) the date on which the estate of the deceased individual
15 transfers any part of the ownership of the homestead from
16 the estate.
17 Sec. 11. Deferred property taxes and accrued interest may be
18 paid at any time on or before the delayed due date under section 10
19 of this chapter. Payment of deferred property taxes after the
20 delayed due date shall be collected in the same manner as
21 delinquent property taxes.
22 Sec. 12. (a) If a payment of deferred property taxes is made, the
23 county treasurer shall notify the county auditor, the county
24 recorder, and the department of local government finance on the
25 form and in the manner prescribed by the department of local
26 government finance. Notice to the county recorder must be in the
27 form of a release of the lien on the homestead for the deferred
28 property taxes.
29 (b) When payment of deferred property taxes is made, the
30 deferred property taxes shall be apportioned and distributed
31 among the respective funds of the taxing units in the same manner
32 as if the property taxes had been paid when initially due.
33 Sec. 13. Whenever an individual who is a qualified individual on
34 an assessment date for which property taxes were deferred:
35 (1) ceases to use the homestead as the individual's principal
36 place of residence as provided in section 4(3) of this chapter;
37 (2) ceases to have a qualified interest in the homestead; or
38 (3) changes the individual's qualified interest in the
39 homestead;
40 or a surviving spouse becomes a qualified individual, a person
41 responsible for paying the property taxes on the homestead shall
42 notify the county auditor in the county where the homestead is
2025 IN 6—LS 6835/DI 120 6
1 located on the form and in the manner prescribed by the
2 department of local government finance. The county auditor shall
3 review the information filed under this section to determine
4 whether a deferral termination event has occurred.
5 Sec. 14. (a) If, as the result of the filing of information with the
6 county auditor or on the county auditor's own motion, the county
7 auditor determines that a deferral termination event has occurred,
8 the county auditor shall notify the county treasurer, the county
9 recorder, and the department of local government finance on the
10 form and in the manner prescribed by the department of local
11 government finance.
12 (b) A county auditor shall give written notice of each
13 determination under this chapter to the qualified individuals for
14 the affected homestead.
15 Sec. 15. The county recorder shall record the following without
16 charge in the miscellaneous records of the county recorder:
17 (1) A statement of the amount of property tax deferred.
18 (2) A statement of payment of deferred property taxes.
19 (3) A notice of termination of a deferral.
2025 IN 6—LS 6835/DI 120