Bill Text: IN HB1048 | 2010 | Regular Session | Amended
Bill Title: Property tax deductions for contract purchasers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2010-02-15 - Senator Taylor added as cosponsor [HB1048 Detail]
Download: Indiana-2010-HB1048-Amended.html
Citations Affected: IC 6-1.1; IC 32-21; IC 33-42; IC 34-30.
Synopsis: Property tax deductions for contract purchasers. With
respect to a contract for the purchase of a single family dwelling that
is not prepared by an attorney or a licensed real estate broker or
salesperson, provides that the contract is valid only if: (1) the contract
is notarized; and (2) if the contract is for a term of at least three years,
the contract is recorded in the county in which the dwelling is located.
Provides that the notary public who notarizes the contract must provide
to the contract purchaser a form that: (1) is prescribed by the
department of local government finance; (2) is made available to
notaries public, certain county officials, and the public in an electronic
format; and (3) describes the availability of certain property tax
deductions. Provides that a notary is not liable for the content of the
form or for failing to provide the form. Provides that the requirements
that: (1) a contract for the purchase of a single family dwelling must be
notarized and, in certain circumstances, recorded; and (2) the notary
public notarizing the contract must provide the contract purchaser with
the form concerning property tax benefits; do not apply to a contract
between an initial home buyer and a builder for the construction of a
new home. Provides the same exemption for a contract in which an
individual purchases a new manufactured home or new mobile home:
(1) for use as a residence that the individual will occupy as the first
occupant; and (2) directly from the manufacturer, the manufacturer's
agent, a dealer, or a seller that did not previously purchase the
manufactured home or mobile home in a retail transaction.
Effective: Upon passage.
January 5, 2010, read first time and referred to Committee on Financial Institutions.
January 26, 2010, amended, reported _ Do Pass.
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 between an initial home buyer (as defined in IC 32-27-2-2) and a builder (as defined in IC 32-27-2-6) for the construction of a new home.
(2) A contract under which:
(A) an individual agrees to purchase a new:
(i) manufactured home; or
(ii) mobile home;
that is not assessed as real property;
(B) the individual will use the manufactured home or mobile home:
(i) as a residence; and
(ii) as the first occupant of the manufactured home or mobile home; and
(C) the individual purchases the manufactured home or mobile home:
(i) directly from the manufacturer, the manufacturer's agent, or a dealer of manufactured homes or mobile homes; or
(ii) from a seller that otherwise did not previously purchase the manufactured home or mobile home in a retail transaction.
(3) A transaction that is subject to section 43 of this chapter.
(b) For purposes of this section:
(1) "benefit" refers to a deduction under section 1, 9, 11, 13, 14, 16, 17.4, 26, 29, 31, 33, 34, 34.5, 37, or 37.5 of this chapter; and
(2) "contract" refers to a contract that:
(A) is for the purchase of a single family dwelling (as defined in section 37 of this chapter) that the purchaser will occupy as a residence; and
(B) is not prepared by:
(i) an attorney; or
(ii) a broker or salesperson licensed under IC 25-34.1.
(c) Before notarizing a contract after June 30, 2010, a notary public must provide to the contract purchaser the form referred to in subsection (d).
(d) Before July 1, 2010, the department of local government finance shall prescribe the form to be provided by notaries public to contract purchasers under subsection (c). The department shall make the form available to notaries public, county assessors, county auditors, and county treasurers in an electronic format that may be printed and reproduced. County assessors, county auditors, and county treasurers shall make the form available to the general public. The form must:
(1) list each benefit;
(2) list the eligibility criteria for each benefit;
(3) indicate:
(A) each action that a contract purchaser must take; and
(B) each type of documentation that a contract purchaser must provide;
to file for each benefit; and
(4) provide sufficient instructions and information to permit a party to terminate a standard deduction under section 37 of this chapter on any property on which the party or the spouse of the party will no longer be eligible for the standard
deduction under section 37 of this chapter after the party or
the party's spouse begins to reside at the property that is the
subject of the contract, including an explanation of the tax
consequences and applicable penalties if a party unlawfully
claims a standard deduction under section 37 of this chapter.
(e) A notary public:
(1) may print and reproduce the form referred to in
subsection (d); and
(2) is not responsible for the content of the form referred to in
subsection (d) and shall be held harmless by the department
of local government finance from any liability for the content
of the form.
(f) A notary public is not liable for any other damages claimed
by a contract purchaser because of the notary public's mere failure
to provide the appropriate document to the contract purchaser
under subsection (c).
Chapter 1.5. Requirement to Notarize and Record Contract
Sec. 1. This chapter does not apply to the following:
(1) A contract between an initial home buyer (as defined in IC 32-27-2-2) and a builder (as defined in IC 32-27-2-6) for the construction of a new home.
(2) A contract under which:
(A) an individual agrees to purchase a new:
(i) manufactured home; or
(ii) mobile home;
that is not assessed as real property;
(B) the individual will use the manufactured home or mobile home:
(i) as a residence; and
(ii) as the first occupant of the manufactured home or mobile home; and
(C) the individual purchases the manufactured home or mobile home:
(i) directly from the manufacturer, the manufacturer's agent, or a dealer of manufactured homes or mobile homes; or
(ii) from a seller that otherwise did not previously purchase the manufactured home or mobile home in a retail transaction.
(3) A transaction that is subject to IC 6-1.1-12-43.
Sec. 2. As used in this chapter, "contract" refers to a contract that:
(1) is for the purchase of a single family dwelling (as defined in IC 6-1.1-12-37) that the purchaser will occupy as a residence; and
(2) is not prepared by:
(A) an attorney; or
(B) a broker or salesperson licensed under IC 25-34.1.
Sec. 3. A contract executed after June 30, 2010, is valid only if the contract is notarized.
Sec. 4. A contract that:
(1) is for a term of at least three (3) years; and
(2) is executed after June 30, 2010;
is valid only if the contract is recorded in the recorder's office of the county in which the dwelling that is the subject of the contract is located.
