Bill Text: IN HB1359 | 2010 | Regular Session | Introduced
Bill Title: Property tax deduction for qualified improvements.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2010-01-13 - First reading: referred to Committee on Ways and Means [HB1359 Detail]
Download: Indiana-2010-HB1359-Introduced.html
Citations Affected: IC 6-1.1-12-25; IC 6-1.1-12.8.
Synopsis: Property tax deduction for qualified improvements.
Establishes a property tax deduction for a qualified improvement,
which is real property that has been renovated or rehabilitated at a
specified cost of which at least 50% is dedicated to renovation or
rehabilitation of exterior components. Provides that: (1) the deduction
applies in the amount of 100% of the resultant increase in assessed
value for a period of five years (or ten years if the qualified
improvement qualifies as a historic qualified improvement); (2) the
deduction applies in reduced amounts for the next five years; and (3)
the owner of the qualified improvement must apply to the county
auditor for the deduction. Directs the department of local government
finance to adopt rules. Provides that the property owner may apply for
the deduction for the qualified improvement or one of the deductions
under current law that apply for rehabilitation.
Effective: Upon passage.
January 13, 2010, read first time and referred to Committee on Ways and Means.
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
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
(1) may receive
(2) may not receive deductions
Chapter 12.8. Deduction for Qualified Improvements
Sec. 1. As used in this chapter, "historic qualified improvement" refers to the following:
(1) A qualified improvement:
(A) that is located in a historic district established under IC 36-7-11; and
(B) for which the renovation or rehabilitation referred to in section 4(a)(5)(B) of this chapter of exterior components of the improvement is covered by a certificate of appropriateness approved under IC 36-7-11.
(2) A qualified improvement:
(A) that is not located in a historic district established under IC 36-7-11;
(B) for which initial construction was completed at least forty (40) years before the date of application for the deduction under this chapter;
(C) that is located in a municipality or county that has established a historic preservation commission under IC 36-7-11; and
(D) for which the renovation or rehabilitation referred to in section 4(a)(5)(B) of this chapter of exterior components of the improvement is approved by a commission referred to in clause (C).
Sec. 2. As used in this chapter, "index" refers to the United States Department of Labor Consumer Price Index for all Urban Consumers.
Sec. 3. (a) Subject to subsection (b), as used in this chapter, "qualified amount" means the remainder of:
(1) the assessed value of a qualified improvement for the assessment date in the calendar year for which the deduction under this chapter is determined; minus
(2) the assessed value of the qualified improvement for the assessment date in the calendar year that immediately precedes the first calendar year for which the deduction under this chapter applies.
(b) The assessed value for purposes of subsection (a) is the assessed value determined based on all elements of assessment methodology that apply in the determination of assessed value, including the following:
(1) Renovation or rehabilitation.
(2) A general reassessment of real property under IC 6-1.1-4-4.
(3) An annual adjustment under IC 6-1.1-4-4.5.
Sec. 4. (a) As used in this chapter, "qualified improvement" refers to a real property improvement:
(1) that is located in Indiana;
(2) that an individual owns;
(3) that appears as a separate improvement on a property
record card for the parcel on which the improvement is
located;
(4) for which the assessed value as of the assessment date for
a calendar year after 2010 exceeds the assessed value for the
immediately preceding calendar year;
(5) for which all or part of the increase in assessed value
referred to in subdivision (4) is attributable to renovation or
rehabilitation of the improvement at a cost:
(A) that is at least the greater of:
(i) except as provided in subsection (b), fifteen thousand
dollars ($15,000); or
(ii) fifteen percent (15%) of the assessed value of the
improvement for the assessment date in the calendar
year that immediately precedes the first calendar year
for which the deduction under this chapter applies under
the resolution referred to in section 5(a) of this chapter;
and
(B) of which at least fifty percent (50%) is dedicated to
renovation or rehabilitation of exterior components of the
improvement; and
(6) for which the renovation or rehabilitation of the
improvement referred to in subdivision (5) begins and is
completed during a two (2) year period that ends during the
twelve (12) months that immediately precede the first
assessment date for which the deduction under this chapter
applies.
(b) For the determination of a deduction under this chapter for
an assessment date after 2011, the figure in subsection (a)(5)(A)(i)
is replaced with the product of:
(1) fifteen thousand dollars ($15,000); multiplied by
(2) the quotient determined by the department of local
government finance of:
(A) the annual average index for the calendar year that
immediately precedes the first calendar year for which the
deduction under this chapter applies; divided by
(B) the annual average index for calendar year 2010.
Sec. 5. (a) The fiscal body of a county may determine by
resolution that qualified improvements located in the county are
entitled to a deduction under this chapter. The resolution must
state the assessment date or assessment dates for which the
deduction applies. The fiscal body shall certify a copy of a
resolution adopted under this subsection to the county auditor.
(b) If the fiscal body of the county adopts a resolution under subsection (a), the owner of a qualified improvement located in the county is entitled to a deduction from the assessed value of the qualified improvement.
(c) Except as provided in subsection (d), the deduction for a qualified improvement applies in the amount of one hundred percent (100%) of the qualified amount:
(1) for the first assessment date:
(A) for which an increase in assessed value referred to in section 4(a)(4) of this chapter applies; and
(B) for which the deduction under this chapter applies under the resolution referred to in subsection (a); and
(2) for the assessment dates in the next succeeding four (4) years.
(d) The deduction for a historic qualified improvement applies in the amount of one hundred percent (100%) of the qualified amount:
(1) for the first assessment date:
(A) for which an increase in assessed value referred to in section 4(a)(4) of this chapter applies; and
(B) for which the deduction under this chapter applies under the resolution referred to in subsection (a); and
(2) for the assessment dates in the next succeeding nine (9) years.
(e) For assessment dates in the calendar years that next succeed the last calendar year for which a deduction applies under subsection (c) or (d), the deduction applies in the following amounts:
(1) Eighty percent (80%) of the qualified amount for the assessment date in the first succeeding calendar year.
(2) Sixty percent (60%) of the qualified amount for the assessment date in the second succeeding calendar year.
(3) Forty percent (40%) of the qualified amount for the assessment date in the third succeeding calendar year.
(4) Twenty percent (20%) of the qualified amount for the assessment date in the fourth succeeding calendar year.
Sec. 6. (a) A property owner who desires to obtain the deduction provided by section 5 of this chapter must file a certified deduction application, on forms prescribed by the department of local government finance, with the auditor of the county in which the qualified improvement is located. Except as otherwise provided in subsection (b) or (e), the deduction application must be filed in the
year in which the addition to assessed value is made.
(b) If notice of the assessed value of the qualified improvement
for a year is not given to the owner before December 31 of the year
referred to in subsection (a), the deduction application required by
this section may be filed not later than thirty (30) days after the
date the notice is mailed or transmitted to the owner.
(c) The deduction application required by this section must
contain the following information:
(1) The name of the owner of the qualified improvement.
(2) A description of the qualified improvement for which a
deduction is claimed, in sufficient detail to afford
identification.
(3) The assessed value of the qualified improvement.
(4) Whether the qualified improvement qualifies as a historic
qualified improvement.
(5) Documentation of the cost referred to in section 4(a)(5)(A)
of this chapter.
(6) Documentation that the requirement of section 4(a)(5)(B)
of this chapter is met.
(7) Any other information required by the department of local
government finance.
(d) A deduction application filed under subsection (a) or (b)
applies for the first year and in the following years for which the
deduction is allowed without any additional deduction application
being filed.
(e) An owner of a qualified improvement who desires to obtain
the deduction under this chapter but who fails to file a deduction
application within the dates prescribed in subsection (a) or (b) may
file a deduction application on or after March 1 and not later than
May 10 of a subsequent year. An application filed under this
subsection applies for the assessment date in the calendar year in
which it is filed and for the subsequent years without any
additional deduction application being filed for the amount of the
deduction that would apply to those years under section 5 of this
chapter if the deduction application had been filed in accordance
with subsection (a) or (b).
(f) Subject to subsection (j), the county auditor shall examine a
deduction application filed under this section and, if the county
auditor determines that the application complies with this chapter,
make the appropriate deductions.
(g) Subject to subsection (h), the period of the deduction under
this chapter is terminated by a change in the ownership of a
qualified improvement, effective beginning on the first assessment
date after the change of ownership.
(h) Subsection (g) does not apply to a qualified improvement for
which a deduction was granted under this chapter and that, after
a change in ownership, is owned by an individual who was a joint
owner of the qualified improvement when the deduction was
granted, if:
(1) the individual is the sole owner of the qualified
improvement following the death of the individual's spouse;
(2) the individual is the sole owner of the qualified
improvement following the death of a joint owner who was
not the individual's spouse; or
(3) the individual is awarded sole ownership of the qualified
improvement in a divorce decree.
(i) The township assessor or county assessor shall include a
notice of the deadlines for filing a deduction application under
subsections (a) and (b) with each notice of assessment sent to the
owner of a qualified improvement.
(j) Before the county auditor acts under subsection (f), the
county auditor may request that the township assessor of the
township in which the qualified improvement is located, or the
county assessor of the county in which the qualified improvement
is located if there is no township assessor for the township, review
the deduction application.
(k) A property owner may appeal a determination of the county
auditor under subsection (f) to deny an application by requesting
in writing a preliminary conference with the county auditor not
more than forty-five (45) days after the county auditor gives the
person notice of the determination. An appeal initiated under this
subsection shall be processed and determined in the same manner
that an appeal is processed and determined under IC 6-1.1-15.
Sec. 7. For renovation or rehabilitation of an improvement, the
owner:
(1) may qualify for the deduction provided by IC 6-1.1-12-18,
the deduction provided by IC 6-1.1-12-22, or the deduction
provided by this chapter; and
(2) may not qualify for deductions for the renovation or
rehabilitation under more than one (1) of those statutes.
Sec. 8. The department of local government finance:
(1) shall adopt rules under IC 4-22-2; and
(2) may adopt emergency rules in the manner provided in
IC 4-22-2-37.1;
to implement this chapter.
