Bill Text: IN HB1223 | 2011 | Regular Session | Introduced
Bill Title: Property tax deductions for land sale contracts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-12 - First reading: referred to Committee on Ways and Means [HB1223 Detail]
Download: Indiana-2011-HB1223-Introduced.html
Citations Affected: IC 6-1.1.
Synopsis: Property tax deductions for land sale contracts. Specifies the
terms that a contract for the purchase of real property or a mobile home
or manufactured home that is not assessed as 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.
Effective: July 1, 2011.
January 12, 2011, read first time and referred to Committee on Ways and Means.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(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, mobile home, or manufactured home is located.
(2) The contract requires the buyer to pay the property taxes on the real property, mobile home, or manufactured home.
(3) The contract specifies the following terms:
(A) The total contract price.
(B) The amount of each payment installment.
(C) The schedule of payment installments.
(4) The contract requires the seller to issue a deed to the
buyer upon the buyer's payment of the total contract price.
(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;
(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
(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
(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.
home that is not assessed as real property or a manufactured home that
is not assessed as real property, the application must be filed during the
twelve (12) months before March 31 of each year for which the
individual wishes to obtain the deduction. The application may be filed
in person or by mail. If mailed, the mailing must be postmarked on or
before the last day for filing.
(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 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.
(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 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.
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. The statement shall contain a sworn declaration that the
individual is entitled to the deduction.
(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, that provides that the individual is to
pay property taxes for the real estate, mobile home, or manufactured
home, the statement required by this section must contain the record
number and page where the contract or memorandum of the contract
is recorded.
(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
(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
deduction provided under this section with respect to that real property,
mobile home, or manufactured home.
(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;
(4) any additional information which the department of local government finance may require.
(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) "Homestead" means an individual's principal place of
residence:
(A) that is located in Indiana;
(B) that:
(i) the individual owns;
(ii) the individual is buying under a qualified installment
contract; recorded in the county recorder's office, that
provides that the individual is to pay the property taxes on
the residence;
(iii) the individual is entitled to occupy as a
tenant-stockholder (as defined in 26 U.S.C. 216) of a
cooperative housing corporation (as defined in 26 U.S.C.
216); or
(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. that provides the contract buyer is to pay property taxes on the
property.
(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; that require the buyer to pay
property taxes; and
(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.
