Introduced Version
SENATE BILL No. 41
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-12-14.
Synopsis: Assessed value deductions for disabled veterans. Eliminates
the assessed value cap that applies to the property tax deduction for a
veteran who: (1) has a total disability; or (2) is at least 62 years of age
and has at least a 10% disability.
Effective: July 1, 2025.
Dernulc, Tomes, Niemeyer
January 8, 2025, read first time and referred to Committee on Tax and Fiscal Policy.
2025 IN 41—LS 6227/DI 116 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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additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
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.
SENATE BILL No. 41
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 6-1.1-12-14, AS AMENDED BY P.L.136-2024,
2 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2025]: Sec. 14. (a) Except as provided in subsection (c) and
4 except as provided in section 40.5 of this chapter, an individual may
5 have the sum of fourteen thousand dollars ($14,000) deducted from the
6 assessed value of the real property, mobile home not assessed as real
7 property, or manufactured home not assessed as real property that the
8 individual owns (or the real property, mobile home not assessed as real
9 property, or manufactured home not assessed as real property that the
10 individual is buying under a contract that provides that the individual
11 is to pay property taxes on the real property, mobile home, or
12 manufactured home if the contract or a memorandum of the contract is
13 recorded in the county recorder's office) if:
14 (1) the individual served in the military or naval forces of the
15 United States for at least ninety (90) days;
16 (2) the individual received an honorable discharge;
17 (3) the individual either:
2025 IN 41—LS 6227/DI 116 2
1 (A) has a total disability; or
2 (B) is at least sixty-two (62) years old and has a disability of at
3 least ten percent (10%);
4 (4) the individual's disability is evidenced by:
5 (A) a pension certificate or an award of compensation issued
6 by the United States Department of Veterans Affairs; or
7 (B) a certificate of eligibility issued to the individual by the
8 Indiana department of veterans' affairs after the Indiana
9 department of veterans' affairs has determined that the
10 individual's disability qualifies the individual to receive a
11 deduction under this section; and
12 (5) the individual:
13 (A) owns the real property, mobile home, or manufactured
14 home; or
15 (B) is buying the real property, mobile home, or manufactured
16 home under contract;
17 on the date the statement required by section 15 of this chapter is
18 filed.
19 (b) Except as provided in subsections (c) and (d), The surviving
20 spouse of an individual may receive the deduction provided by this
21 section if:
22 (1) the individual satisfied the requirements of subsection (a)(1)
23 through (a)(4) at the time of death; or
24 (2) the individual:
25 (A) was killed in action;
26 (B) died while serving on active duty in the military or naval
27 forces of the United States; or
28 (C) died while performing inactive duty training in the military
29 or naval forces of the United States; and
30 the surviving spouse satisfies the requirement of subsection (a)(5) at
31 the time the deduction statement is filed. The surviving spouse is
32 entitled to the deduction regardless of whether the property for which
33 the deduction is claimed was owned by the deceased veteran or the
34 surviving spouse before the deceased veteran's death.
35 (c) Except as provided in subsection (f), no one is entitled to the
36 deduction provided by this section if the assessed value of the
37 individual's Indiana real property, Indiana mobile home not assessed as
38 real property, and Indiana manufactured home not assessed as real
39 property, as shown by the tax duplicate, exceeds the assessed value
40 limit specified in subsection (d).
41 (d) Except as provided in subsection (f), for the:
42 (1) January 1, 2017, January 1, 2018, and January 1, 2019,
2025 IN 41—LS 6227/DI 116 3
1 assessment dates, the assessed value limit for purposes of
2 subsection (c) is one hundred seventy-five thousand dollars
3 ($175,000);
4 (2) January 1, 2020, January 1, 2021, January 1, 2022, and
5 January 1, 2023, assessment dates, the assessed value limit for
6 purposes of subsection (c) is two hundred thousand dollars
7 ($200,000); and
8 (3) January 1, 2024, assessment date and for each assessment date
9 thereafter, the assessed value limit for purposes of subsection (c)
10 is two hundred forty thousand dollars ($240,000).
11 (e) (c) An individual who has sold real property, a mobile home not
12 assessed as real property, or a manufactured home not assessed as real
13 property to another person under a contract that provides that the
14 contract buyer is to pay the property taxes on the real property, mobile
15 home, or manufactured home may not claim the deduction provided
16 under this section against that real property, mobile home, or
17 manufactured home.
18 (f) For purposes of determining the assessed value of the real
19 property, mobile home, or manufactured home under subsection (d) for
20 an individual who has received a deduction under this section in a
21 previous year, increases in assessed value that occur after the later of:
22 (1) December 31, 2019; or
23 (2) the first year that the individual has received the deduction;
24 are not considered unless the increase in assessed value is attributable
25 to substantial renovation or new improvements. Where there is an
26 increase in assessed value for purposes of the deduction under this
27 section, the assessor shall provide a report to the county auditor
28 describing the substantial renovation or new improvements, if any, that
29 were made to the property prior to the increase in assessed value.
30 SECTION 2. [EFFECTIVE JULY 1, 2025] (a) IC 6-1.1-12-14, as
31 amended by this act, applies to assessment dates after December
32 31, 2025.
33 (b) This SECTION expires July 1, 2029.
2025 IN 41—LS 6227/DI 116