Bill Text: IN SB0173 | 2011 | Regular Session | Introduced
Bill Title: Property tax deduction for new homes.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced - Dead) 2011-01-27 - Senator Tomes added as coauthor [SB0173 Detail]
Download: Indiana-2011-SB0173-Introduced.html
Citations Affected: IC 6-1.1-12.8.
Synopsis: Property tax deduction for new homes. Establishes a 100%
property tax deduction for a new home, which includes a newly
constructed home or an existing home that has not been previously
occupied as a residence. Provides that: (1) the deduction applies only
if the contracts for construction or purchase and financing are entered
into after June 30, 2011, and before July 1, 2012; (2) the deduction
period is five years unless the legislative body of the city, town, or
county establishes a period of three or four years; and (3) the owner of
the new home must apply to the county auditor for the deduction.
Directs the department of local government finance to adopt rules.
Effective: Upon passage.
January 5, 2011, read first time and referred to Committee on Commerce & Economic
Development.
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.
Chapter 12.8. New Home Deduction
Sec. 1. As used in this chapter, "dwelling" means any of the residential real property improvements that an individual uses as the individual's residence, including a house or garage.
Sec. 2. As used in this chapter, "new home" means an individual's principal place of residence:
(1) that is located in Indiana;
(2) that the individual owns;
(3) that has not been previously occupied as a residence;
(4) that is subject to contracts for:
(A) construction or purchase; and
(B) if applicable, financing;
entered into after June 30, 2011, and before July 1, 2012; and
(5) that consists of a dwelling, excluding the real estate that
immediately surrounds the dwelling.
Sec. 3. (a) The owner of a new home is entitled to a deduction
from the assessed value of the new home. The deduction applies for
the first assessment date for which the owner is liable for the
property taxes on the new home and, except as provided in
subsection (b), for the assessment dates in the next succeeding four
(4) years.
(b) Subject to subsection (c), the legislative body of:
(1) the city or town in which the new home is located; or
(2) the county in which the new home is located, if the new
home is not located in a city or town;
may determine by a resolution adopted not later than July 1, 2011,
that a new home is entitled to a deduction under this chapter for a
total of three (3) years or four (4) years instead of the total of five
(5) years allowed under subsection (a). The legislative body shall
certify a copy of a resolution adopted under this subsection to the
county auditor.
(c) The legislative body may provide in a resolution adopted
under subsection (b) that the period of the deduction under this
chapter is three (3), four (4), or five (5) years depending on:
(1) the assessed value of the new home; or
(2) any other criteria that the legislative body considers
appropriate.
Sec. 4. (a) Subject to subsection (b) and except as provided in
subsection (c), the amount of the deduction that the property
owner is entitled to receive under section 3 of this chapter for a
particular year equals one hundred percent (100%) of the assessed
value of the new home.
(b) The amount of the deduction determined under subsection
(a) shall be adjusted in accordance with this subsection in the
following circumstances:
(1) If:
(A) a general reassessment of real property under
IC 6-1.1-4-4; or
(B) an annual adjustment under IC 6-1.1-4-4.5;
occurs within the period of the deduction, the amount
determined under subsection (a) shall be adjusted to reflect
the percentage increase or decrease in assessed valuation that
resulted from the general reassessment or annual adjustment.
(2) If within the period of the deduction an appeal of an
assessment is approved, resulting in a change in the assessed
value of the new home, the amount of any deduction shall be
adjusted to reflect the percentage change that resulted from
the appeal.
(c) The amount of the deduction determined under subsection
(a) excludes any part of the assessed value of the new home
attributable within the period of the deduction to an improvement,
expansion, or other physical change to the real property.
Sec. 5. (a) A property owner who desires to obtain the deduction
provided by section 3 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
new home is located. The department of local government finance
shall include on the form a prominent notice to the property owner
that the deduction period is temporary and that the property tax
liability will increase substantially after the deduction period.
Except as otherwise provided in subsection (b) or (e), the deduction
application must be filed on or before May 10 of the year in which
the addition to assessed valuation is made.
(b) If notice of the assessed value for a year is not given to the
owner of the new home before April 10 of that year, 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 new home.
(2) A description of the new home for which a deduction is
claimed, in sufficient detail to afford identification.
(3) The assessed value of the new home.
(4) 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 new home who desires to obtain the deduction
provided by section 3 of 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 year during 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 4 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 deduction:
(1) for a period of five (5) years under section 3(a) of this
chapter; or
(2) if a resolution has been adopted under section 3(b) of this
chapter, for the period determined in the resolution.
(g) Subject to subsection (h), the period of the deduction under
this chapter is terminated by a change in the ownership of a new
home, effective beginning on the first assessment date after the
change of ownership.
(h) Subsection (g) does not apply to a new home 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 new home when the deduction was granted, if:
(1) the individual is the sole owner of the new home following
the death of the individual's spouse;
(2) the individual is the sole owner of the new home following
the death of a joint owner who was not the individual's
spouse; or
(3) the individual is awarded sole ownership of the new home
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 new home.
(j) Before the county auditor acts under subsection (f), the
county auditor may request that the township assessor of the
township in which the new home is located, or the county assessor
of the county in which the new home 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. 6. 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.
