Bill Text: IN HB1270 | 2011 | Regular Session | Amended
Bill Title: Property taxes.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2011-02-22 - First reading: referred to Committee on Appropriations [HB1270 Detail]
Download: Indiana-2011-HB1270-Amended.html
Citations Affected: IC 6-1.1; noncode.
Synopsis: Property taxes. Provides that the property tax exemption for
fraternity or sorority property applies to property used for
administrative purposes including property owned by a national or
international headquarters, fraternity or sorority foundations, and
housing corporations. Establishes standards for determining when a
cooperative housing corporation is eligible for a standard deduction or
a 1% circuit breaker credit. Specifies the terms that a contract for the
purchase of real property must include to qualify the buyer for certain
property tax deductions. Defines a contract containing the required
terms as a qualified installment contract. Provides that a person who:
(1) owns property subject to taxation; (2) misrepresents a residential
lease as a qualified installment contract; and (3) through the person's
misrepresentation causes another individual to improperly claim a
deduction that is made available to a buyer under a qualified
installment contract; is liable for any additional taxes that would have
been due on the property if the person had leased the property to the
purported contract buyer, plus a civil penalty equal to 10% of the
additional taxes due. Provides for the retroactive application of a
property tax exemption to a taxpayer that owns real and personal
property used as part of or in connection with a men's cooperative
house.
Effective: January 1, 2008 (retroactive); March 1, 2011 (retroactive);
July 1, 2011.
January 12, 2011, read first time and referred to Committee on Ways and Means.
February 14, 2011, amended, reported _ Do Pass.
February 17, 2011, read second time, amended, ordered engrossed.
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
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
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) A contract for the purchase of real property that complies with each of the requirements in subsection (b).
(2) A contract for:
(A) the purchase of a mobile home not assessed as real property; or
(B) a manufactured home that is not assessed as real property;
that complies with each of the requirements in subsection (c).
(b) A contract for the purchase of real property is a qualified installment contract if the contract complies with each of the following requirements:
(1) The contract or a memorandum of the contract is recorded in the county recorder's office of the county in which
the real property is located.
(2) The contract requires the buyer to pay the property taxes
on the real property.
(3) The contract specifies the total contract price.
(4) The contract requires the seller to issue a deed or other
evidence of title to the buyer upon the buyer's payment of the
total contract price.
(c) A contract for the purchase of a mobile home not assessed as
real property or a manufactured home that is not assessed as real
property is a qualified installment contract if the contract complies
with each of the following requirements:
(1) The contract or a memorandum of the contract is
recorded with the county recorder's office of the county in
which the mobile home or manufactured home is located.
(2) The contract requires the buyer to pay the property taxes
on the mobile home or manufactured home.
(1) a tract of land;
(2) the improvements situated on the tract of land; and
(3) all personal property.
(b) This exemption does not apply unless:
(1) the fraternity or sorority is connected with or related to, and under the supervision of, a college, university, or other educational institution;
(2) the property is used exclusively by the fraternity or sorority to carry out its purpose, including as an international, national, state, or local headquarters or to support the administrative, executive, or other functions associated with the operation of a fraternity or sorority.
(c) For purposes of this section, "fraternity or sorority" includes:
(1) a fraternity or sorority that is connected with or related to, and under the supervision of, a college, university, or other educational institution;
(2) an international, national, state, or local fraternity or sorority that administers, coordinates, operates, or governs fraternity or sorority chapters, units, divisions, or other groups or group members that are connected with or related
to, and under the supervision of, a college, university, or other
educational institution;
(3) a foundation related to a fraternity or sorority; or
(4) a housing corporation or similar entity related to a
fraternity or sorority.
(d) To qualify for the exemption allowed by this section, the
property may be owned, occupied, or used by more than one (1)
fraternity or sorority, as long as the property is used to carry out
the purposes of fraternities or sororities.
(b) The exemption application referred to in section 3 of this chapter is not required if the exempt property is a cemetery:
(1) described by IC 6-1.1-2-7; or
(2) maintained by a township executive under IC 23-14-68.
(c) The exemption application referred to in section 3 of this chapter is not required if the exempt property is owned by the bureau of motor vehicles commission established under IC 9-15-1.
(d) The exemption application referred to in section 3 or 3.5 of this chapter is not required if:
(1) the exempt property is:
(A) tangible property used for religious purposes described in IC 6-1.1-10-21;
(B) tangible property owned by a church or religious society used for educational purposes described in IC 6-1.1-10-16;
(C) other tangible property owned, occupied, and used by a person for educational, literary, scientific, religious, or charitable purposes described in IC 6-1.1-10-16; or
(D) other tangible property owned by a fraternity or sorority (as defined in IC 6-1.1-10-24).
(2) the exemption application referred to in section 3 or 3.5 of this chapter was filed properly at least once for a religious use under IC 6-1.1-10-21,
(3) the property continues to meet the requirements for an
exemption under IC 6-1.1-10-16, or IC 6-1.1-10-21, or
IC 6-1.1-10-24.
A change in ownership of property does not terminate an exemption of
the property if after the change in ownership the property continues to
meet the requirements for an exemption under IC 6-1.1-10-16, or
IC 6-1.1-10-21, or IC 6-1.1-10-24. However, if title to any of the real
property subject to the exemption changes or any of the tangible
property subject to the exemption is used for a nonexempt purpose after
the date of the last properly filed exemption application, the person that
obtained the exemption or the current owner of the property shall notify
the county assessor for the county where the tangible property is
located of the change in the year that the change occurs. The notice
must be in the form prescribed by the department of local government
finance. If the county assessor discovers that title to property granted
an exemption described in IC 6-1.1-10-16, or IC 6-1.1-10-21, or
IC 6-1.1-10-24 has changed, the county assessor shall notify the
persons entitled to a tax statement under IC 6-1.1-22-8.1 for the
property of the change in title and indicate that the county auditor will
suspend the exemption for the property until the persons provide the
county assessor with an affidavit, signed under penalties of perjury, that
identifies the new owners of the property and indicates that the
property continues to meet the requirements for an exemption under
IC 6-1.1-10-21, or IC 6-1.1-10-16, or IC 6-1.1-10-24. Upon receipt of
the affidavit, the county assessor shall reinstate the exemption for the
years for which the exemption was suspended and each year thereafter
that the property continues to meet the requirements for an exemption
under IC 6-1.1-10-21, or IC 6-1.1-10-16, or IC 6-1.1-10-24.
(1) mortgaged real property, an installment loan financed mobile home that is not assessed as real property, or an installment loan financed manufactured home that is not assessed as real property, with the mortgage or installment loan instrument recorded with the county recorder's office, that the person owns;
(2) real property, a mobile home that is not assessed as real property, or a manufactured home that is not assessed as real property that the person is buying under a qualified installment contract;
home, or manufactured home; or
(3) real property, a mobile home that is not assessed as real
property, or a manufactured home that the person owns or is
buying on a qualified installment contract described in
subdivision (2) on which the person has a home equity line of
credit that is recorded in the county recorder's office.
(b) Except as provided in section 40.5 of this chapter, the total
amount of the deduction which the person may receive under this
section for a particular year is:
(1) the balance of the mortgage or contract indebtedness
(including a home equity line of credit) on the assessment date of
that year;
(2) one-half (1/2) of the assessed value of the real property,
mobile home, or manufactured home; or
(3) three thousand dollars ($3,000);
whichever is least.
(c) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a qualified installment contract which
provides that the contract buyer is to pay the property taxes on the real
property, mobile home, or manufactured home may not claim the
deduction provided under this section with respect to that real property,
mobile home, or manufactured home.
(d) The person must:
(1) own the real property, mobile home, or manufactured home;
or
(2) be buying the real property, mobile home, or manufactured
home under a qualified installment contract;
on the date the statement is filed under section 2 of this chapter.
(b) Subject to subsection (c), to apply for the deduction under section 1 of this chapter with respect to real property, the person recording the mortgage, home equity line of credit, qualified
installment contract, or memorandum of the contract with the county
recorder may file a written statement with the county recorder
containing the information described in subsection (e)(1), (e)(2), (e)(3),
(e)(4), (e)(6), (e)(7), and (e)(8). The statement must be prepared on the
form prescribed by the department of local government finance and be
signed by the property owner or contract purchaser under the penalties
of perjury. The form must have a place for the county recorder to insert
the record number and page where the mortgage, home equity line of
credit, qualified installment contract, or memorandum of the contract
is recorded. Upon receipt of the form and the recording of the
mortgage, home equity line of credit, qualified installment contract,
or memorandum of the contract, the county recorder shall insert on the
form the record number and page where the mortgage, home equity line
of credit, qualified installment contract, or memorandum of the
contract is recorded and forward the completed form to the county
auditor. The county recorder may not impose a charge for the county
recorder's duties under this subsection. The statement must be
completed and dated in the calendar year for which the person wishes
to obtain the deduction and filed with the county recorder on or before
January 5 of the immediately succeeding calendar year.
(c) With respect to:
(1) real property as an alternative to a filing under subsection (b);
or
(2) a mobile home that is not assessed as real property or a
manufactured home that is not assessed as real property;
to apply for a deduction under section 1 of this chapter, a person who
desires to claim the deduction may file a statement in duplicate, on
forms prescribed by the department of local government finance, with
the auditor of the county in which the real property, mobile home not
assessed as real property, or manufactured home not assessed as real
property is located. With respect to real property the statement must be
completed and dated in the calendar year for which the person wishes
to obtain the deduction and filed with the county auditor on or before
January 5 of the immediately succeeding calendar year. With respect
to a mobile home that is not assessed as real property or a
manufactured home that is not assessed as real property, the statement
must be filed during the twelve (12) months before March 31 of each
year for which the individual wishes to obtain the deduction. The
statement may be filed in person or by mail. If mailed, the mailing must
be postmarked on or before the last day for filing. In addition to the
statement required by this subsection, a contract buyer who desires to
claim the deduction must submit a copy of the recorded qualified
installment contract or recorded memorandum of the contract, which
must contain a legal description sufficient to meet the requirements of
IC 6-1.1-5, with the first statement that the buyer files under this
section with respect to a particular parcel of real property.
(d) Upon receipt of:
(1) the statement under subsection (b); or
(2) the statement under subsection (c) and the recorded qualified
installment contract or recorded memorandum of the contract;
the county auditor shall assign a separate description and identification
number to the parcel of real property being sold under the qualified
installment contract.
(e) The statement referred to in subsections (b) and (c) must be
verified under penalties for perjury. The statement must contain the
following information:
(1) The balance of the person's mortgage, home equity line of
credit, or qualified installment contract indebtedness that is
recorded in the county recorder's office on the assessment date of
the year for which the deduction is claimed.
(2) The assessed value of the real property, mobile home, or
manufactured home.
(3) The full name and complete residence address of the person
and of the mortgagee or contract seller.
(4) The name and residence of any assignee or bona fide owner or
holder of the mortgage, home equity line of credit, or qualified
installment contract, if known, and if not known, the person shall
state that fact.
(5) The record number and page where the mortgage, qualified
installment contract, or memorandum of the contract is recorded.
(6) A brief description of the real property, mobile home, or
manufactured home which is encumbered by the mortgage or
home equity line of credit or sold under the qualified installment
contract.
(7) If the person is not the sole legal or equitable owner of the real
property, mobile home, or manufactured home, the exact share of
the person's interest in it.
(8) The name of any other county in which the person has applied
for a deduction under this section and the amount of deduction
claimed in that application.
(f) The authority for signing a deduction application filed under this
section may not be delegated by the real property, mobile home, or
manufactured home owner or contract buyer to any person except upon
an executed power of attorney. The power of attorney may be contained
in the recorded mortgage, qualified installment contract, or
memorandum of the contract, or in a separate instrument.
(g) A closing agent (as defined in section 43(a)(2) of this chapter)
is not liable for any damages claimed by the property owner or contract
purchaser because of:
(1) the closing agent's failure to provide the written statement
described in subsection (b);
(2) the closing agent's failure to file the written statement
described in subsection (b);
(3) any omission or inaccuracy in the written statement described
in subsection (b) that is filed with the county recorder by the
closing agent; or
(4) any determination made with respect to a property owner's or
contract purchaser's eligibility for the deduction under section 1
of this chapter.
(h) The county recorder may not refuse to record a mortgage,
qualified installment contract, or memorandum because the written
statement described in subsection (b):
(1) is not included with the mortgage, home equity line of credit,
qualified installment contract, or memorandum of the contract;
(2) does not contain the signatures required by subsection (b);
(3) does not contain the information described in subsection (e);
or
(4) is otherwise incomplete or inaccurate.
(i) The form prescribed by the department of local government
finance under subsection (b) and the instructions for the form must
both include a statement:
(1) that explains that a person is not entitled to a deduction under
section 1 of this chapter unless the person has a balance on the
person's mortgage or contract indebtedness that is recorded in the
county recorder's office (including any home equity line of credit
that is recorded in the county recorder's office) that is the basis for
the deduction; and
(2) that specifies the penalties for perjury.
(j) The department of local government finance shall develop a
notice:
(1) that must be displayed in a place accessible to the public in
the office of each county auditor;
(2) that includes the information described in subsection (i); and
(3) that explains that the form prescribed by the department of
local government finance to claim the deduction under section 1
of this chapter must be signed by the property owner or contract
purchaser under the penalties of perjury.
(1) the individual is at least sixty-five (65) years of age on or before December 31 of the calendar year preceding the year in which the deduction is claimed;
(2) the combined adjusted gross income (as defined in Section 62 of the Internal Revenue Code) of:
(A) the individual and the individual's spouse; or
(B) the individual and all other individuals with whom:
(i) the individual shares ownership; or
(ii) the individual is purchasing the property under a contract;
as joint tenants or tenants in common;
for the calendar year preceding the year in which the deduction is claimed did not exceed twenty-five thousand dollars ($25,000);
(3) the individual has owned the real property, mobile home, or manufactured home for at least one (1) year before claiming the deduction; or the individual has been buying the real property, mobile home, or manufactured home under a qualified installment contract that provides that the individual is to pay the property taxes on the real property, mobile home, or manufactured home for at least one (1) year before claiming the deduction, and the contract or a memorandum of the contract is recorded in the county recorder's office;
(4) the individual and any individuals covered by subdivision (2)(B) reside on the real property, mobile home, or manufactured home;
(5) the assessed value of the real property, mobile home, or manufactured home does not exceed one hundred eighty-two thousand four hundred thirty dollars ($182,430);
(6) the individual receives no other property tax deduction for the year in which the deduction is claimed, except the deductions provided by sections 1, 37, (for assessment dates after February 28, 2008) 37.5, and 38 of this chapter; and
(7) the person:
(A) owns the real property, mobile home, or manufactured home; or
(B) is buying the real property, mobile home, or manufactured
home under a qualified installment contract;
on the date the statement required by section 10.1 of this chapter
is filed.
(b) Except as provided in subsection (h), in the case of real property,
an individual's deduction under this section equals the lesser of:
(1) one-half (1/2) of the assessed value of the real property; or
(2) twelve thousand four hundred eighty dollars ($12,480).
(c) Except as provided in subsection (h) and section 40.5 of this
chapter, in the case of a mobile home that is not assessed as real
property or a manufactured home which is not assessed as real
property, an individual's deduction under this section equals the lesser
of:
(1) one-half (1/2) of the assessed value of the mobile home or
manufactured home; or
(2) twelve thousand four hundred eighty dollars ($12,480).
(d) An individual may not be denied the deduction provided under
this section because the individual is absent from the real property,
mobile home, or manufactured home while in a nursing home or
hospital.
(e) For purposes of this section, if real property, a mobile home, or
a manufactured home is owned by:
(1) tenants by the entirety;
(2) joint tenants; or
(3) tenants in common;
only one (1) deduction may be allowed. However, the age requirement
is satisfied if any one (1) of the tenants is at least sixty-five (65) years
of age.
(f) A surviving spouse is entitled to the deduction provided by this
section if:
(1) the surviving spouse is at least sixty (60) years of age on or
before December 31 of the calendar year preceding the year in
which the deduction is claimed;
(2) the surviving spouse's deceased husband or wife was at least
sixty-five (65) years of age at the time of a death;
(3) the surviving spouse has not remarried; and
(4) the surviving spouse satisfies the requirements prescribed in
subsection (a)(2) through (a)(7).
(g) An individual who has sold real property to another person
under a qualified installment contract that provides that the contract
buyer is to pay the property taxes on the real property may not claim
the deduction provided under this section against that real property.
(h) In the case of tenants covered by subsection (a)(2)(B), if all of
the tenants are not at least sixty-five (65) years of age, the deduction
allowed under this section shall be reduced by an amount equal to the
deduction multiplied by a fraction. The numerator of the fraction is the
number of tenants who are not at least sixty-five (65) years of age, and
the denominator is the total number of tenants.
(b) The statement referred to in subsection (a) shall be in affidavit form or require verification under penalties of perjury. The statement must be filed in duplicate if the applicant owns, or is buying under a contract, real property, a mobile home, or a manufactured home subject to assessment in more than one (1) county or in more than one (1) taxing district in the same county. The statement shall contain:
(1) the source and exact amount of gross income received by the individual and the individual's spouse during the preceding calendar year;
(2) the description and assessed value of the real property, mobile home, or manufactured home;
(3) the individual's full name and complete residence address;
(4) the record number and page where the contract or memorandum of the contract is recorded if the individual is buying the real property, mobile home, or manufactured home on a qualified installment contract; and
(5) any additional information which the department of local government finance may require.
(c) In order to substantiate the deduction statement, the applicant shall submit for inspection by the county auditor a copy of the applicant's and a copy of the applicant's spouse's income tax returns for
the preceding calendar year. If either was not required to file an income
tax return, the applicant shall subscribe to that fact in the deduction
statement.
(1) the individual is blind or the individual has a disability;
(2) the real property, mobile home, or manufactured home is principally used and occupied by the individual as the individual's residence;
(3) the individual's taxable gross income for the calendar year preceding the year in which the deduction is claimed did not exceed seventeen thousand dollars ($17,000); and
(4) the individual:
(A) owns the real property, mobile home, or manufactured home; or
(B) is buying the real property, mobile home, or manufactured home under a qualified installment contract;
on the date the statement required by section 12 of this chapter is filed.
(b) For purposes of this section, taxable gross income does not include income which is not taxed under the federal income tax laws.
(c) For purposes of this section, "blind" has the same meaning as the definition contained in IC 12-7-2-21(1).
(d) For purposes of this section, "individual with a disability" means a person unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment which:
(1) can be expected to result in death; or
(2) has lasted or can be expected to last for a continuous period of not less than twelve (12) months.
(e) An individual with a disability filing a claim under this section shall submit proof of disability in such form and manner as the department shall by rule prescribe. Proof that a claimant is eligible to
receive disability benefits under the federal Social Security Act (42
U.S.C. 301 et seq.) shall constitute proof of disability for purposes of
this section.
(f) An individual with a disability not covered under the federal
Social Security Act shall be examined by a physician and the
individual's status as an individual with a disability determined by
using the same standards as used by the Social Security Administration.
The costs of this examination shall be borne by the claimant.
(g) An individual who has sold real property, a mobile home not
assessed as real property, or a manufactured home not assessed as real
property to another person under a qualified installment contract that
provides that the contract buyer is to pay the property taxes on the real
property, mobile home, or manufactured home may not claim the
deduction provided under this section against that real property, mobile
home, or manufactured home.
(b) Proof of blindness may be supported by:
(1) the records of the division of family resources or the division of disability and rehabilitative services; or
(2) the written statement of a physician who is licensed by this state and skilled in the diseases of the eye or of a licensed optometrist.
(c) The application required by this section must contain the record number and page where the qualified installment contract or memorandum of the contract is recorded if the individual is buying the real property, mobile home, or manufactured home on a qualified
installment contract. that provides that the individual is to pay property
taxes on the real property, mobile home, or manufactured home.
(1) the individual served in the military or naval forces of the United States during any of its wars;
(2) the individual received an honorable discharge;
(3) the individual has a disability with a service connected disability of ten percent (10%) or more;
(4) the individual's disability is evidenced by:
(A) a pension certificate, an award of compensation, or a disability compensation check issued by the United States Department of Veterans Affairs; or
(B) a certificate of eligibility issued to the individual by the Indiana department of veterans' affairs after the Indiana department of veterans' affairs has determined that the individual's disability qualifies the individual to receive a deduction under this section; and
(5) the individual:
(A) owns the real property, mobile home, or manufactured home; or
(B) is buying the real property, mobile home, or manufactured home under a qualified installment contract;
on the date the statement required by section 15 of this chapter is filed.
(b) The surviving spouse of an individual may receive the deduction provided by this section if the individual would qualify for the deduction if the individual were alive.
(c) One who receives the deduction provided by this section may not receive the deduction provided by section 16 of this chapter. However, the individual may receive any other property tax deduction which the individual is entitled to by law.
(d) An individual who has sold real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property to another person under a qualified installment contract
(1) the individual served in the military or naval forces of the United States for at least ninety (90) days;
(2) the individual received an honorable discharge;
(3) the individual either:
(A) has a total disability; or
(B) is at least sixty-two (62) years old and has a disability of at least ten percent (10%);
(4) the individual's disability is evidenced by:
(A) a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs; or
(B) a certificate of eligibility issued to the individual by the Indiana department of veterans' affairs after the Indiana department of veterans' affairs has determined that the individual's disability qualifies the individual to receive a deduction under this section; and
(5) the individual:
(A) owns the real property, mobile home, or manufactured home; or
(B) is buying the real property, mobile home, or manufactured home under a qualified installment contract;
on the date the statement required by section 15 of this chapter is filed.
(b) Except as provided in subsection (c), the surviving spouse of an individual may receive the deduction provided by this section if the individual would qualify for the deduction if the individual were alive.
(c) No one is entitled to the deduction provided by this section if the assessed value of the individual's tangible property, as shown by the tax duplicate, exceeds one hundred forty-three thousand one hundred sixty dollars ($143,160).
(d) An individual who has sold real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property to another person under a qualified installment contract
(b) In addition to the statement, the individual shall submit to the county auditor for the auditor's inspection:
(1) a pension certificate, an award of compensation, or a disability compensation check issued by the United States Department of Veterans Affairs if the individual claims the deduction provided by section 13 of this chapter;
(2) a pension certificate or an award of compensation issued by the United States Department of Veterans Affairs if the individual claims the deduction provided by section 14 of this chapter; or
(3) the appropriate certificate of eligibility issued to the individual by the Indiana department of veterans' affairs if the individual claims the deduction provided by section 13 or 14 of this chapter.
(c) If the individual claiming the deduction is under guardianship, the guardian shall file the statement required by this section.
(d) If the individual claiming a deduction under section 13 or 14 of this chapter is buying real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property under a qualified installment contract,
(1) the deceased spouse served in the military or naval forces of the United States before November 12, 1918;
(2) the deceased spouse received an honorable discharge; and
(3) the surviving spouse:
(A) owns the real property, mobile home, or manufactured home; or
(B) is buying the real property, mobile home, or manufactured home under contract;
on the date the statement required by section 17 of this chapter is filed.
(b) A surviving spouse who receives the deduction provided by this section may not receive the deduction provided by section 13 of this chapter. However, he or she may receive any other deduction which he or she is entitled to by law.
(c) An individual who has sold real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property to another person under a qualified installment contract
home, or manufactured home.
(1) a sworn statement that the surviving spouse is entitled to the deduction; and
(2) the record number and page where the qualified installment contract or memorandum of the contract is recorded, if the individual is buying the real property on a qualified installment contract.
In addition to the statement, the surviving spouse shall submit to the county auditor for the auditor's inspection a letter or certificate from the United States Department of Veterans Affairs establishing the service of the deceased spouse in the military or naval forces of the United States before November 12, 1918.
(1) the real property, mobile home, or manufactured home is the veteran's principal residence;
(2) the assessed valuation of the real property, mobile home, or manufactured home does not exceed two hundred six thousand five hundred dollars ($206,500);
(3) the veteran owns the real property, mobile home, or manufactured home for at least one (1) year before claiming the deduction; and
(4) the veteran:
(A) owns the real property, mobile home, or manufactured home; or
(B) is buying the real property, mobile home, or manufactured home under a qualified installment contract;
on the date the statement required by section 17.5 of this chapter is filed.
(b) An individual may not be denied the deduction provided by this section because the individual is absent from the individual's principal residence while in a nursing home or hospital.
(c) For purposes of this section, if real property, a mobile home, or a manufactured home is owned by a husband and wife as tenants by the entirety, only one (1) deduction may be allowed under this section. However, the deduction provided in this section applies if either spouse satisfies the requirements prescribed in subsection (a).
(d) An individual who has sold real property, a mobile home not assessed as real property, or a manufactured home not assessed as real property to another person under a qualified installment contract
statement may be filed in person or by mail. If mailed, the mailing must
be postmarked on or before the last day for filing.
(b) The statement required under this section shall be in affidavit
form or require verification under penalties of perjury. The statement
shall be filed in duplicate if the veteran has, or is buying under a
contract, real property in more than one (1) county or in more than one
(1) taxing district in the same county. The statement shall contain:
(1) a description and the assessed value of the real property,
mobile home, or manufactured home;
(2) the veteran's full name and complete residence address;
(3) the record number and page where the contract or
memorandum of the qualified installment contract is recorded,
if the individual is buying the real property, mobile home, or
manufactured home on a qualified installment contract; that
provides that the individual is to pay property taxes on the real
property, mobile home, or manufactured home; and
(4) any additional information which the department of local
government finance may require.
(1) the last known address of each person liable for any property taxes or special assessment, as shown on the tax duplicate or special assessment records; or
(2) the last known address of the most recent owner shown in the transfer book.
(b) An individual who receives a deduction provided under section 1, 9, 11, 13, 14, 16, or 17.4 of this chapter in a particular year and who
becomes ineligible for the deduction in the following year shall notify
the auditor of the county in which the real property, mobile home, or
manufactured home for which the individual claims the deduction is
located of the individual's ineligibility in the year in which the
individual becomes ineligible. An individual who becomes ineligible
for a deduction under section 37 of this chapter shall notify the county
auditor of the county in which the property is located in conformity
with section 37 of this chapter.
(c) The auditor of each county shall, in a particular year, apply a
deduction provided under section 1, 9, 11, 13, 14, 16, 17.4, or 37 of this
chapter to each individual who received the deduction in the preceding
year unless the auditor determines that the individual is no longer
eligible for the deduction.
(d) An individual who receives a deduction provided under section
1, 9, 11, 13, 14, 16, 17.4, or 37 of this chapter for property that is
jointly held with another owner in a particular year and remains eligible
for the deduction in the following year is not required to file a
statement to reapply for the deduction following the removal of the
joint owner if:
(1) the individual is the sole owner of the property following the
death of the individual's spouse;
(2) the individual is the sole owner of the property following the
death of a joint owner who was not the individual's spouse; or
(3) the individual is awarded sole ownership of the property in a
divorce decree.
However, for purposes of a deduction under section 37 of this chapter,
if the removal of the joint owner occurs before the date that a notice
described in IC 6-1.1-22-8.1(b)(9) is sent, the county auditor may, in
the county auditor's discretion, terminate the deduction for assessment
dates after January 15, 2012, if the individual does not comply with the
requirement in IC 6-1.1-22-8.1(b)(9), as determined by the county
auditor, before January 1, 2013. Before the county auditor terminates
the deduction because the taxpayer claiming the deduction did not
comply with the requirement in IC 6-1.1-22-8.1(b)(9) before January
1, 2013, the county auditor shall mail notice of the proposed
termination of the deduction to the last known address of each person
liable for any property taxes or special assessment, as shown on the tax
duplicate or special assessment records or the last known address of the
most recent owner shown in the transfer book.
(e) A trust entitled to a deduction under section 9, 11, 13, 14, 16,
17.4, or 37 of this chapter for real property owned by the trust and
occupied by an individual in accordance with section 17.9 of this
chapter is not required to file a statement to apply for the deduction, if:
(1) the individual who occupies the real property receives a
deduction provided under section 9, 11, 13, 14, 16, 17.4, or 37 of
this chapter in a particular year; and
(2) the trust remains eligible for the deduction in the following
year.
However, for purposes of a deduction under section 37 of this chapter,
the individuals that qualify the trust for a deduction must comply with
the requirement in IC 6-1.1-22-8.1(b)(9) before January 1, 2013.
(f) A cooperative housing corporation (as defined in 26 U.S.C. 216)
that is entitled to a deduction under section 37 of this chapter in the
immediately preceding calendar year for a homestead (as defined in
section 37 of this chapter) is not required to file a statement to apply for
the deduction for the current calendar year if the eligible cooperative
housing corporation remains eligible for the deduction for the current
calendar year. However, the county auditor may, in the county auditor's
discretion, terminate the deduction for assessment dates after January
15, 2012, if the individual does not comply with the requirement in
IC 6-1.1-22-8.1(b)(9), as determined by the county auditor, before
January 1, 2013. Before the county auditor terminates a deduction
because the taxpayer claiming the deduction did not comply with the
requirement in IC 6-1.1-22-8.1(b)(9) before January 1, 2013, the
county auditor shall mail notice of the proposed termination of the
deduction to:
(1) the last known address of each person liable for any property
taxes or special assessment, as shown on the tax duplicate or
special assessment records; or
(2) the last known address of the most recent owner shown in the
transfer book.
(g) An individual who:
(1) was eligible for a homestead credit under IC 6-1.1-20.9
(repealed) for property taxes imposed for the March 1, 2007, or
January 15, 2008, assessment date; or
(2) would have been eligible for a homestead credit under
IC 6-1.1-20.9 (repealed) for property taxes imposed for the March
1, 2008, or January 15, 2009, assessment date if IC 6-1.1-20.9 had
not been repealed;
is not required to file a statement to apply for a deduction under section
37 of this chapter if the individual remains eligible for the deduction in
the current year. An individual who filed for a homestead credit under
IC 6-1.1-20.9 (repealed) for an assessment date after March 1, 2007 (if
the property is real property), or after January 1, 2008 (if the property
is personal property), shall be treated as an individual who has filed for
a deduction under section 37 of this chapter. However, the county
auditor may, in the county auditor's discretion, terminate the deduction
for assessment dates after January 15, 2012, if the individual does not
comply with the requirement in IC 6-1.1-22-8.1(b)(9), as determined
by the county auditor, before January 1, 2013. Before the county
auditor terminates the deduction because the taxpayer claiming the
deduction did not comply with the requirement in IC 6-1.1-22-8.1(b)(9)
before January 1, 2013, the county auditor shall mail notice of the
proposed termination of the deduction to the last known address of
each person liable for any property taxes or special assessment, as
shown on the tax duplicate or special assessment records, or to the last
known address of the most recent owner shown in the transfer book.
(h) If a county auditor terminates a deduction because the taxpayer
claiming the deduction did not comply with the requirement in
IC 6-1.1-22-8.1(b)(9) before January 1, 2013, the county auditor shall
reinstate the deduction if the taxpayer provides proof that the taxpayer
is eligible for the deduction and is not claiming the deduction for any
other property.
(i) A taxpayer described in section 37(k) of this chapter is not
required to file a statement to apply for the deduction provided by
section 37 of this chapter for a calendar year beginning after December
31, 2008, if the property owned by the taxpayer remains eligible for the
deduction for that calendar year. However, the county auditor may
terminate the deduction for assessment dates after January 15, 2012, if
the individual residing on the property owned by the taxpayer does not
comply with the requirement in IC 6-1.1-22-8.1(b)(9), as determined
by the county auditor, before January 1, 2013. Before the county
auditor terminates a deduction because the individual residing on the
property did not comply with the requirement in IC 6-1.1-22-8.1(b)(9)
before January 1, 2013, the county auditor shall mail notice of the
proposed termination of the deduction to:
(1) the last known address of each person liable for any property
taxes or special assessment, as shown on the tax duplicate or
special assessment records; or
(2) the last known address of the most recent owner shown in the
transfer book.
(1) "Dwelling" means any of the following:
(A) Residential real property improvements that an individual uses as the individual's residence, including a house or garage.
(B) A mobile home that is not assessed as real property that an individual uses as the individual's residence.
(C) A manufactured home that is not assessed as real property that an individual uses as the individual's residence.
(2) "Eligible cooperative housing corporation property" means property that is:
(A) owned by a cooperative housing corporation (as defined in 26 U.S.C. 216); and
(B) used as the principal place of residence of an individual who:
(i) is a tenant-stockholder (as defined in 26 U.S.C. 216) in the cooperative housing corporation referred to in clause (A); and
(ii) can demonstrate an ownership interest in the shares of the cooperative housing corporation that has a value at least equal to the true tax value of the property that the individual uses as the individual's principal place of residence.
Subject to subsection (m), the term includes a proportionate share of common areas used for residential purposes by individuals described in clause (B). The term does not include a leasing or zero equity cooperative.
(A) that is located in Indiana;
(B) that:
(i) the individual owns;
(ii) the individual is buying under a qualified installment contract;
(iii)
(iv) is a residence described in section 17.9 of this chapter that is owned by a trust if the individual is an individual described in section 17.9 of this chapter; and
(C) that consists of a dwelling and the real estate, not exceeding one (1) acre, that immediately surrounds that
dwelling.
Except as provided in subsection (k), the term does not include
property owned by a corporation, partnership, limited liability
company, or other entity not described in this subdivision.
(b) Each year a homestead is eligible for a standard deduction from
the assessed value of the homestead for an assessment date. The
deduction provided by this section applies to property taxes first due
and payable for an assessment date only if an individual has an interest
in the homestead described in subsection (a)(2)(B) on:
(1) the assessment date; or
(2) any date in the same year after an assessment date that a
statement is filed under subsection (e) or section 44 of this
chapter, if the property consists of real property.
Subject to subsection (c), the auditor of the county shall record and
make the deduction for the individual or entity qualifying for the
deduction.
(c) Except as provided in section 40.5 of this chapter, the total
amount of the deduction that a person may receive under this section
for a particular year is the lesser of:
(1) sixty percent (60%) of the assessed value of the real property,
mobile home not assessed as real property, or manufactured home
not assessed as real property; or
(2) forty-five thousand dollars ($45,000).
(d) A person who has sold real property, a mobile home not assessed
as real property, or a manufactured home not assessed as real property
to another person under a qualified installment contract that provides
that the contract buyer is to pay the property taxes on the real property,
mobile home, or manufactured home may not claim the deduction
provided under this section with respect to that real property, mobile
home, or manufactured home.
(e) Except as provided in sections 17.8 and 44 of this chapter and
subject to section 45 of this chapter, an individual who desires to claim
the deduction provided by this section must file a certified statement in
duplicate, on forms prescribed by the department of local government
finance, with the auditor of the county in which the homestead is
located. The statement must include:
(1) the parcel number or key number of the property and the name
of the city, town, or township in which the property is located;
(2) the name of any other location in which the applicant or the
applicant's spouse owns, is buying, or has a beneficial interest in
residential real property;
(3) the names of:
(A) the applicant and the applicant's spouse (if any):
(i) as the names appear in the records of the United States Social Security Administration for the purposes of the issuance of a Social Security card and Social Security number; or
(ii) that they use as their legal names when they sign their names on legal documents;
if the applicant is an individual; or
(B) each individual who qualifies property as a homestead under subsection (a)(2)(B) and the individual's spouse (if any):
(i) as the names appear in the records of the United States Social Security Administration for the purposes of the issuance of a Social Security card and Social Security number; or
(ii) that they use as their legal names when they sign their names on legal documents;
if the applicant is not an individual; and
(4) either:
(A) the last five (5) digits of the applicant's Social Security number and the last five (5) digits of the Social Security number of the applicant's spouse (if any); or
(B) if the applicant or the applicant's spouse (if any) do not have a Social Security number, any of the following for that individual:
(i) The last five (5) digits of the individual's driver's license number.
(ii) The last five (5) digits of the individual's state identification card number.
(iii) If the individual does not have a driver's license or a state identification card, the last five (5) digits of a control number that is on a document issued to the individual by the federal government and determined by the department of local government finance to be acceptable.
If a form or statement provided to the county auditor under this section, IC 6-1.1-22-8.1, or IC 6-1.1-22.5-12 includes the telephone number or part or all of the Social Security number of a party or other number described in subdivision (4)(B) of a party, the telephone number and the Social Security number or other number described in subdivision (4)(B) included are confidential. The statement may be filed in person or by mail. If the statement is mailed, the mailing must be postmarked on or before the last day for filing. The statement applies for that first year and any succeeding year for which the deduction is allowed. With
respect to real property, the statement must be completed and dated in
the calendar year for which the person desires to obtain the deduction
and filed with the county auditor on or before January 5 of the
immediately succeeding calendar year. With respect to a mobile home
that is not assessed as real property, the person must file the statement
during the twelve (12) months before March 31 of the year for which
the person desires to obtain the deduction.
(f) If an individual who is receiving the deduction provided by this
section or who otherwise qualifies property for a deduction under this
section:
(1) changes the use of the individual's property so that part or all
of the property no longer qualifies for the deduction under this
section; or
(2) is no longer eligible for a deduction under this section on
another parcel of property because:
(A) the individual would otherwise receive the benefit of more
than one (1) deduction under this chapter; or
(B) the individual maintains the individual's principal place of
residence with another individual who receives a deduction
under this section;
the individual must file a certified statement with the auditor of the
county, notifying the auditor of the change of use, not more than sixty
(60) days after the date of that change. An individual who fails to file
the statement required by this subsection is liable for any additional
taxes that would have been due on the property if the individual had
filed the statement as required by this subsection plus a civil penalty
equal to ten percent (10%) of the additional taxes due. The civil penalty
imposed under this subsection is in addition to any interest and
penalties for a delinquent payment that might otherwise be due. One
percent (1%) of the total civil penalty collected under this subsection
shall be transferred by the county to the department of local
government finance for use by the department in establishing and
maintaining the homestead property data base under subsection (i) and,
to the extent there is money remaining, for any other purposes of the
department. This amount becomes part of the property tax liability for
purposes of this article.
(g) The department of local government finance shall adopt rules or
guidelines concerning the application for a deduction under this
section.
(h) This subsection does not apply to property in the first year for
which a deduction is claimed under this section if the sole reason that
a deduction is claimed on other property is that the individual or
married couple maintained a principal residence at the other property
on March 1 in the same year in which an application for a deduction is
filed under this section or, if the application is for a homestead that is
assessed as personal property, on March 1 in the immediately
preceding year and the individual or married couple is moving the
individual's or married couple's principal residence to the property that
is the subject of the application. The county auditor may not grant an
individual or a married couple a deduction under this section if:
(1) the individual or married couple, for the same year, claims the
deduction on two (2) or more different applications for the
deduction; and
(2) the applications claim the deduction for different property.
(i) The department of local government finance shall provide secure
access to county auditors to a homestead property data base that
includes access to the homestead owner's name and the numbers
required from the homestead owner under subsection (e)(4) for the sole
purpose of verifying whether an owner is wrongly claiming a deduction
under this chapter or a credit under IC 6-1.1-20.4, IC 6-1.1-20.6, or
IC 6-3.5.
(j) The department of local government finance shall work with
county auditors to develop procedures to determine whether a property
owner that is claiming a standard deduction or homestead credit is not
eligible for the standard deduction or homestead credit because the
property owner's principal place of residence is outside Indiana.
(k) As used in this section, "homestead" includes property that
satisfies each of the following requirements:
(1) The property is located in Indiana and consists of a dwelling
and the real estate, not exceeding one (1) acre, that immediately
surrounds that dwelling.
(2) The property is the principal place of residence of an
individual.
(3) The property is owned by an entity that is not described in
subsection (a)(2)(B).
(4) The individual residing on the property is a shareholder,
partner, or member of the entity that owns the property.
(5) The property was eligible for the standard deduction under
this section on March 1, 2009.
(l) If a county auditor terminates a deduction for property described
in subsection (k) with respect to property taxes that are:
(1) imposed for an assessment date in 2009; and
(2) first due and payable in 2010;
on the grounds that the property is not owned by an entity described in
subsection (a)(2)(B), the county auditor shall reinstate the deduction if
the taxpayer provides proof that the property is eligible for the
deduction in accordance with subsection (k) and that the individual
residing on the property is not claiming the deduction for any other
property.
(m) For assessments dates after 2009, the term "homestead"
includes:
(1) a deck or patio;
(2) a gazebo; or
(3) another residential yard structure, as defined in rules adopted
by the department of local government finance (other than a
swimming pool);
that is assessed as real property and attached to the dwelling.
(1) purchasing property under a contract that does not require the buyer to pay property taxes on the property; and
(2) required to pay property taxes under IC 6-1.1-10-41;
is eligible for a deduction granted by this chapter to the same extent as a person who is buying property under a qualified installment contract.
(b) To obtain the deduction, with the application the applicant must provide:
(1) the same information concerning the contract that is required for qualified installment contracts;
(2) information that indicates that IC 6-1.1-10-41 applies to the property.
(1) an assessment date occurring after February 28, 2012, with respect to property taxes first due and payable after December 31, 2012, for an assessed valuation deduction claimed for real property; or
(2) an assessment date occurring after December 31, 2011, with respect to property taxes first due and payable after December 31, 2011, for an assessed valuation deduction claimed for a mobile home or manufactured home assessed
under IC 6-1.1-7.
(b) A person who:
(1) owns property subject to taxation under this article;
(2) misrepresents a residential lease as a qualified installment
contract; and
(3) through the misrepresentation described in subdivision (2)
causes another individual to improperly claim a deduction
that is made available to a buyer under a qualified installment
contract under this chapter;
is liable for any additional taxes that would have been due on the
property if the person had leased the property to the purported
contract buyer, plus a civil penalty equal to ten percent (10%) of
the additional taxes due.
(c) The civil penalty imposed under subsection (b) is in addition
to any interest and penalties for a delinquent payment that might
otherwise be due.
(d) One percent (1%) of the total civil penalty collected under
this section shall be transferred by the county to the department of
local government finance for use by the department in establishing
and maintaining the homestead property data base under section
37 of this chapter and, to the extent there is money remaining, for
any other purposes of the department. This amount becomes part
of the property tax liability for purposes of this article.
applies to IC 6-1.1-11-4, as amended by this act, as if both
provisions had been in effect on January 1, 2008.
(b) This SECTION expires January 1, 2013.
(b) With respect to the March 1, 2010, assessment date, the exemption allowed by IC 6-1.1-10-24, as amended by this act, applies to tangible property acquired for future use by a fraternity or sorority for a use set forth in IC 6-1.1-10-24(b)(2), as amended by this act.
(c) This SECTION expires January 1, 2013.
(b) This section applies to an assessment date (as defined by IC 6-1.1-1-2) occurring after December 31, 2005, and before January 1, 2010.
(c) As used in this SECTION, "taxpayer" refers to an Indiana nonprofit corporation that owns real and personal property used as part of or in connection with a men's cooperative house.
(d) A taxpayer, after February 13, 2011, but before February 26, 2011, may file or refile in person or in any other manner consistent with IC 6-1.1-36-1.5:
(1) a Form 136 property tax exemption application, along with any supporting documents, schedules, or attachments, claiming an exemption from real property taxes or personal property taxes, or both under IC 6-1.1-10-16 or IC 6-1.1-10-24 for any assessment date described in subsection (b); and
(2) a personal property tax return, along with any supporting documents, schedules, or attachments, relating to any personal property under IC 6-1.1-10-16 or IC 6-1.1-10-24 for any assessment date for which an exemption is claimed on a Form 136 property tax exemption application that is filed under this subsection.
(e) Any property tax exemption application or personal
property tax return filed or refiled under subsection (d):
(1) is, subject to this SECTION, allowed; and
(2) is considered to have been timely filed.
(f) If the taxpayer demonstrates in the application or by other
means that the property that is subject to the exemption would
have qualified for an exemption under IC 6-1.1-10-16 as owned,
occupied, and used for an educational, religious, or charitable
purpose or under IC 6-1.1-10-24 if the application had been filed
under IC 6-1.1-11 in a timely manner:
(1) the taxpayer is entitled to the exemptions from real
property taxes, personal property taxes, or both, as claimed
on the property tax exemption applications filed or refiled by
the taxpayer under subsection (d); and
(2) shall pay no property taxes, penalties, or interest with
respect to the exempt property.
(g) For its property to be exempt under this SECTION, the
taxpayer must have received for an assessment date preceding or
following any assessment date described in subsection (b) an
exemption or partial exemption from property taxes for property
identified by the same parcel or key numbers or the same parcel
and key numbers included on the property tax exemption
applications filed or refiled by the taxpayer under subsection (d).
(h) This SECTION expires January 1, 2013.
