Introduced Version
SENATE BILL No. 44
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-1.1-4-4.3.
Synopsis: Homestead assessed value growth cap. Limits the annual
increase in assessed value of a homestead to 2% unless: (1) ownership
of the homestead changes during the year; or (2) the increase results
from physical changes to the homestead.
Effective: January 1, 2012.
January 5, 2011, read first time and referred to Committee on Appropriations.
Introduced
First Regular Session 117th General Assembly (2011)
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SENATE BILL No. 44
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-1.1-4-4.3; (11)IN0044.1.1. -->
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, 2012]:
Sec. 4.3. (a) As used in this section,
"homestead" has the meaning set forth in IC 6-1.1-12-37.
(b) Except as provided in subsection (c) and subject to
subsection (d), for assessment dates after 2011, the assessed value
of a homestead for an assessment date may not exceed the product
of:
(1) the assessed value of the homestead for the immediately
preceding assessment date; multiplied by
(2) one hundred two percent (102%).
(c) Subsection (b) does not apply for an assessment date if:
(1) the entire ownership interest; or
(2) any part of the ownership interest;
in the homestead changes on or before that assessment date and
after the immediately preceding assessment date.
(d) Subsection (b):
(1) applies only to the extent that the increase in the assessed
value of the homestead is attributable to:
(A) an annual adjustment under section 4.5 of this chapter;
or
(B) the application in:
(i) a general reassessment under section 4 of this
chapter; or
(ii) an assessment determined for the assessment date in
a year other than a year in which a general assessment
under section 4 of this chapter first applies;
of factors other than the recognition of one (1) or more
physical changes to the property; and
(2) does not apply to the extent that the increase is
attributable to the recognition of one (1) or more physical
changes to the property.
(e) The department of local government finance shall adopt
rules under IC 4-22-2 to implement this section.