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HOUSE BILL No. 1004

Citations Affected: IC 6-1.1-4-4.3.

Synopsis: Assessed value of homesteads and farmland. Limits the annual increase in the gross assessed value of a homestead to 1% and of agricultural land to 2% unless the increase results from a factor that would have increased the assessed value even if neither an annual assessment adjustment nor a general reassessment applied.

Effective: January 1, 2011.

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Grubb, Pearson, Steuerwald

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    November 17, 2009, read first time and referred to Committee on Ways and Means.

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PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, 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 2009 Regular and Special Sessions of the General Assembly.

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    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

SOURCE: IC 6-1.1-4-4.3; (10)IN1004.1.1. -->     SECTION 1. IC 6-1.1-4-4.3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2011]: Sec. 4.3. (a) As used in this section, "agricultural land" refers to land assessed as agricultural land under the real property assessment rules and guidelines of the department of local government finance.
    (b) As used in this section, "gross assessed value" refers to the assessed value of property after the application of all exemptions under IC 6-1.1-10 or any other provision.
    (c) As used in this section, "homestead" refers to a homestead that is eligible for a standard deduction under IC 6-1.1-12-37. The term includes a house or apartment that is owned or leased by a cooperative housing corporation (as defined in 26 U.S.C. 216(b)).
    (d) Subject to subsection (f), for assessment dates after 2010, the gross assessed value of a homestead for an assessment date may not exceed the product of:
        (1) the gross assessed value of the homestead for the

immediately preceding assessment date; multiplied by
        (2) one hundred one percent (101%).
    (e) Subject to subsection (f), for assessment dates after 2010, the gross assessed value of agricultural land for an assessment date may not exceed the product of:
        (1) the gross assessed value of the agricultural land for the immediately preceding assessment date; multiplied by
        (2) one hundred two percent (102%).
    (f) Subsections (d) and (e):
        (1) apply to the extent that the increase in the gross assessed value of the homestead or agricultural land is attributable to:
            (A) a general reassessment under section 4 of this chapter; or
            (B) an annual adjustment under section 4.5 of this chapter; and
        (2) do not apply to the extent that the increase in the gross assessed value of the homestead or agricultural land is attributable to the application in the assessment process of a factor that would have resulted in a higher gross assessed value of the homestead or agricultural land for the current assessment date as compared to the immediately preceding assessment date even if neither of the following applied in the determination of the gross assessed value of the homestead or agricultural land for the current assessment date:
            (A) A general reassessment under section 4 of this chapter.
            (B) An annual adjustment under section 4.5 of this chapter.
    (g) The department of local government finance shall adopt rules under IC 4-22-2 to implement this section.