Bill Text: IN HB1046 | 2011 | Regular Session | Enrolled
Bill Title: Property tax deduction for new unsold residences.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Passed) 2011-05-16 - Effective 07/01/2011 [HB1046 Detail]
Download: Indiana-2011-HB1046-Enrolled.html
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AN ACT to amend the Indiana Code concerning taxation.
(1) An order adopted by the commissioner of the Indiana department of transportation under IC 9-20-1-3(d) or IC 9-21-4-7(a) and designated by the commissioner as an emergency rule.
(2) An action taken by the director of the department of natural resources under IC 14-22-2-6(d) or IC 14-22-6-13.
(3) An emergency temporary standard adopted by the occupational safety standards commission under IC 22-8-1.1-16.1.
(4) An emergency rule adopted by the solid waste management board under IC 13-22-2-3 and classifying a waste as hazardous.
(5) A rule, other than a rule described in subdivision (6), adopted by the department of financial institutions under IC 24-4.5-6-107 and declared necessary to meet an emergency.
(6) A rule required under IC 24-4.5-1-106 that is adopted by the department of financial institutions and declared necessary to
meet an emergency under IC 24-4.5-6-107.
(7) A rule adopted by the Indiana utility regulatory commission to
address an emergency under IC 8-1-2-113.
(8) An emergency rule adopted by the state lottery commission
under IC 4-30-3-9.
(9) A rule adopted under IC 16-19-3-5 or IC 16-41-2-1 that the
executive board of the state department of health declares is
necessary to meet an emergency.
(10) An emergency rule adopted by the Indiana finance authority
under IC 8-21-12.
(11) An emergency rule adopted by the insurance commissioner
under IC 27-1-23-7.
(12) An emergency rule adopted by the Indiana horse racing
commission under IC 4-31-3-9.
(13) An emergency rule adopted by the air pollution control
board, the solid waste management board, or the water pollution
control board under IC 13-15-4-10(4) or to comply with a
deadline required by or other date provided by federal law,
provided:
(A) the variance procedures are included in the rules; and
(B) permits or licenses granted during the period the
emergency rule is in effect are reviewed after the emergency
rule expires.
(14) An emergency rule adopted by the Indiana election
commission under IC 3-6-4.1-14.
(15) An emergency rule adopted by the department of natural
resources under IC 14-10-2-5.
(16) An emergency rule adopted by the Indiana gaming
commission under IC 4-32.2-3-3(b), IC 4-33-4-2, IC 4-33-4-3,
IC 4-33-4-14, IC 4-33-22-12, or IC 4-35-4-2.
(17) An emergency rule adopted by the alcohol and tobacco
commission under IC 7.1-3-17.5, IC 7.1-3-17.7, or
IC 7.1-3-20-24.4.
(18) An emergency rule adopted by the department of financial
institutions under IC 28-15-11.
(19) An emergency rule adopted by the office of the secretary of
family and social services under IC 12-8-1-12.
(20) An emergency rule adopted by the office of the children's
health insurance program under IC 12-17.6-2-11.
(21) An emergency rule adopted by the office of Medicaid policy
and planning under IC 12-15-41-15.
(22) An emergency rule adopted by the Indiana state board of
animal health under IC 15-17-10-9.
(23) An emergency rule adopted by the board of directors of the
Indiana education savings authority under IC 21-9-4-7.
(24) An emergency rule adopted by the Indiana board of tax
review under IC 6-1.1-4-34 (repealed).
(25) An emergency rule adopted by the department of local
government finance under IC 6-1.1-4-33 (repealed).
(26) An emergency rule adopted by the boiler and pressure vessel
rules board under IC 22-13-2-8(c).
(27) An emergency rule adopted by the Indiana board of tax
review under IC 6-1.1-4-37(l) (repealed) or an emergency rule
adopted by the department of local government finance under
IC 6-1.1-4-36(j) (repealed) or IC 6-1.1-22.5-20.
(28) An emergency rule adopted by the board of the Indiana
economic development corporation under IC 5-28-5-8.
(29) A rule adopted by the department of financial institutions
under IC 34-55-10-2.5.
(30) A rule adopted by the Indiana finance authority:
(A) under IC 8-15.5-7 approving user fees (as defined in
IC 8-15.5-2-10) provided for in a public-private agreement
under IC 8-15.5;
(B) under IC 8-15-2-17.2(a)(10):
(i) establishing enforcement procedures; and
(ii) making assessments for failure to pay required tolls;
(C) under IC 8-15-2-14(a)(3) authorizing the use of and
establishing procedures for the implementation of the
collection of user fees by electronic or other nonmanual
means; or
(D) to make other changes to existing rules related to a toll
road project to accommodate the provisions of a public-private
agreement under IC 8-15.5.
(31) An emergency rule adopted by the board of the Indiana
health informatics corporation under IC 5-31-5-8.
(32) An emergency rule adopted by the state athletic commission
under IC 25-9-1-4.5.
(32) (33) (32) An emergency rule adopted by the department of
child services under IC 31-25-2-21, IC 31-27-2-4, IC 31-27-4-2,
or IC 31-27-4-3.
(34) (33) An emergency rule adopted by the Indiana real estate
commission under IC 25-34.1-2-5(15).
(35) (34) A rule adopted by the department of financial
institutions under IC 24-4.4-1-101 and determined necessary to
meet an emergency.
(35) An emergency rule adopted by the department of local
government finance under IC 6-1.1-12.6 or IC 6-1.1-12.8.
(b) The following do not apply to rules described in subsection (a):
(1) Sections 24 through 36 of this chapter.
(2) IC 13-14-9.
(c) After a rule described in subsection (a) has been adopted by the
agency, the agency shall submit the rule to the publisher for the
assignment of a document control number. The agency shall submit the
rule in the form required by section 20 of this chapter and with the
documents required by section 21 of this chapter. The publisher shall
determine the format of the rule and other documents to be submitted
under this subsection.
(d) After the document control number has been assigned, the
agency shall submit the rule to the publisher for filing. The agency
shall submit the rule in the form required by section 20 of this chapter
and with the documents required by section 21 of this chapter. The
publisher shall determine the format of the rule and other documents
to be submitted under this subsection.
(e) Subject to section 39 of this chapter, the publisher shall:
(1) accept the rule for filing; and
(2) electronically record the date and time that the rule is
accepted.
(f) A rule described in subsection (a) takes effect on the latest of the
following dates:
(1) The effective date of the statute delegating authority to the
agency to adopt the rule.
(2) The date and time that the rule is accepted for filing under
subsection (e).
(3) The effective date stated by the adopting agency in the rule.
(4) The date of compliance with every requirement established by
law as a prerequisite to the adoption or effectiveness of the rule.
(g) Subject to subsection (h), IC 14-10-2-5, IC 14-22-2-6,
IC 22-8-1.1-16.1, and IC 22-13-2-8(c), and except as provided in
subsections (j), (k), and (l), a rule adopted under this section expires
not later than ninety (90) days after the rule is accepted for filing under
subsection (e). Except for a rule adopted under subsection (a)(13),
(a)(24), (a)(25), or (a)(27), the rule may be extended by adopting
another rule under this section, but only for one (1) extension period.
The extension period for a rule adopted under subsection (a)(28) may
not exceed the period for which the original rule was in effect. A rule
adopted under subsection (a)(13) may be extended for two (2)
extension periods. Subject to subsection (j), a rule adopted under
subsection (a)(24), (a)(25), or (a)(27) may be extended for an unlimited
number of extension periods. Except for a rule adopted under
subsection (a)(13), for a rule adopted under this section to be effective
after one (1) extension period, the rule must be adopted under:
(1) sections 24 through 36 of this chapter; or
(2) IC 13-14-9;
as applicable.
(h) A rule described in subsection (a)(8), (a)(12), or (a)(29) expires
on the earlier of the following dates:
(1) The expiration date stated by the adopting agency in the rule.
(2) The date that the rule is amended or repealed by a later rule
adopted under sections 24 through 36 of this chapter or this
section.
(i) This section may not be used to readopt a rule under IC 4-22-2.5.
(j) A rule described in subsection (a)(24) or (a)(25) expires not later
than January 1, 2006.
(k) A rule described in subsection (a)(28) expires on the expiration
date stated by the board of the Indiana economic development
corporation in the rule.
(l) A rule described in subsection (a)(30) expires on the expiration
date stated by the Indiana finance authority in the rule.
(m) A rule described in subsection (a)(5) or (a)(6) expires on the
date the department is next required to issue a rule under the statute
authorizing or requiring the rule.
Chapter 12.8. Deduction for Residence in Inventory
Sec. 0.5. As used in this chapter, "affiliated group" has the meaning set forth in IC 6-1.1-12.6-0.5.
Sec. 1. (a) As used in this chapter, "residence in inventory" means real property that:
(1) is not a model residence (as defined in IC 6-1.1-12.6-1); and
(2) consists of any of the following that has never been occupied:
(A) A single family residence.
(B) A single family townhouse.
(C) A single family condominium unit.
(b) The term does not include any of the land on which the residence, townhouse, or condominium unit is located.
(c) Real property described in subsection (a) that is used by the owner as the owner's regular office space may not be considered a residence in inventory for purposes of this chapter. However, this subsection does not prohibit the use of a garage or other space in the real property:
(1) to store or display material used to promote the real property or other similar properties; or
(2) as a space for meetings with prospective buyers or lessees.
Sec. 2. As used in this chapter, "residential builder" means a person that builds any of the following for sale in the ordinary course of the person's trade or business:
(1) Single family residences.
(2) Single family townhouses.
(3) Single family condominium units.
Sec. 3. (a) This chapter applies only to a residence in inventory that is first assessed as:
(1) a partially completed structure; or
(2) a fully completed structure;
for the assessment date in 2012 or a later year.
(b) Except as provided in subsections (c) and (d) and sections 5 and 6 of this chapter, and subject to section 7 of this chapter, a residential builder that is the owner of a residence in inventory is entitled to a deduction from the assessed value of the residence in inventory in the amount of fifty percent (50%) of the assessed value of the residence in inventory for the following:
(1) Not more than one (1) assessment date for which the residence in inventory is assessed as a partially completed structure.
(2) The assessment date for which the residence in inventory is first assessed as a fully completed structure.
(3) The two (2) assessment dates that immediately succeed the assessment date referred to in subdivision (2).
(c) A deduction allowed for a residence in inventory under this chapter for a particular assessment date is terminated if title to the residence in inventory is transferred:
(1) after the assessment date of that year but before January 1 of the following year; and
(2) to a person for whom the real property does not qualify as a residence in inventory.
The county auditor shall immediately mail notice of the termination to the former owner, the property owner, and the township assessor (or the county assessor if there is no township
assessor for the township). The county auditor shall remove the
deduction from the tax duplicate and shall notify the county
treasurer of the termination of the deduction.
(d) A deduction for a residence in inventory under this chapter
does not apply for a particular assessment date if the residence in
inventory is leased for any purpose for any part of the calendar
year in which the assessment date occurs.
Sec. 4. (a) A property owner that qualifies for the deduction
under this chapter must file a statement containing the information
required by subsection (b) with the county auditor to claim the
deduction for each assessment date for which the property owner
wishes to receive the deduction in the manner prescribed in rules
adopted under section 8 of this chapter. The township assessor, or
the county assessor if there is no township assessor for the
township, shall verify each statement filed under this section, and
the county auditor shall:
(1) make the deductions; and
(2) notify the county property tax assessment board of appeals
of all deductions approved;
under this section.
(b) The statement referred to in subsection (a) must be verified
under penalties for perjury and must contain the following
information:
(1) The assessed value of the real property for which the
person is claiming the deduction.
(2) The full name and complete business address of the person
claiming the deduction.
(3) The complete address and a brief description of the real
property for which the person is claiming the deduction.
(4) The name of any other county in which the person has
applied for a deduction under this chapter for that assessment
date.
(5) The complete address and a brief description of any other
real property for which the person has applied for a deduction
under this chapter for that assessment date.
(6) An affirmation by the owner that the owner is receiving
not more than three (3) deductions under this chapter,
including the deduction being applied for by the owner,
either:
(A) as the owner of the residence in inventory; or
(B) as an owner that is part of an affiliated group.
(7) An affirmation that the real property has not been leased
and will not be leased for any purpose during the term of the
deduction.
Sec. 5. A property owner may not receive a deduction under this
chapter with respect to a residence in inventory located in an
allocation area (as defined in IC 6-1.1-21.2-3).
Sec. 6. A property owner that qualifies for a deduction for a
year under this chapter and another statute with respect to the
same residence in inventory may not receive a deduction under
both statutes for the residence in inventory for that year.
Sec. 7. (a) If ownership of the residence in inventory changes:
(1) a new owner that is a residential builder for which the
property is a residence in inventory may claim the deduction
under this chapter; and
(2) the deduction may not be applied for an assessment date
other than the assessment dates to which the deduction could
have applied under section 3 of this chapter if ownership had
not changed.
(b) A person who owns a residence in inventory and claims a
deduction under this chapter shall provide to the county auditor a
notice that:
(1) informs the auditor of a transfer of the ownership of the
residence in inventory; and
(2) indicates whether the new owner is eligible to receive a
deduction under this chapter.
The notice required by this subsection must be submitted to the
county auditor at the same time that a sales disclosure form is filed
under IC 6-1.1-5.5.
Sec. 8. The department of local government finance shall adopt
rules and may adopt emergency rules under IC 4-22-2 to
implement this chapter.
Sec. 9. (a) Subject to section 10 of this chapter, a property owner
is entitled to a deduction under this chapter for an assessment date
for not more than three (3) residences in inventory in Indiana.
(b) The auditor of a county (referred to in this section as the
"first county") with whom a statement is filed under section 4 of
this chapter shall immediately prepare and transmit a copy of the
statement to the auditor of any other county (referred to in this
section as the "second county") if the property owner that claims
the deduction owns or is buying a residence in inventory located in
the second county.
(c) The county auditor of the second county shall note on the
copy of the statement whether the property owner has claimed a
deduction for the current year under section 4 of this chapter for
a residence in inventory located in the second county. The county
auditor shall then return the copy of the statement to the auditor
of the first county.
Sec. 10. The aggregate number of deductions claimed under this
chapter for a particular assessment date by the owners of
residences in inventory who are a part of an affiliated group may
not exceed three (3).
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