HB 1902-1_ Filed 02/21/2001, 13:29
Adopted 2/21/2001


Text Box

Adopted Rejected


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COMMITTEE REPORT


                                                        YES:

13

                                                        NO:
0

MR. SPEAKER:
    Your Committee on       Local Government     , to which was referred       House Bill 1902     , has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows:

    Delete everything after the enacting clause and insert the following:

SOURCE: IC 6-1.1-4-32; (01)AM190202.1. -->     SECTION 1. IC 6-1.1-4-32 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 32. (a) As used in this section, "qualifying county" means a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000).
    (b) Notwithstanding IC 6-1.1-4-15 and IC 6-1.1-4-17 , a township assessor in a qualifying county may not appraise property, or have property appraised, for a general reassessment. Completion of a general reassessment in a qualifying county is instead governed by this section.
    (c) The state board of tax commissioners shall select and

contract with a nationally recognized appraisal firm to appraise property for each general reassessment in a qualifying county. The contract must include:
        (1) a fixed date by which the appraisal firm must complete all responsibilities under the contract;
        (2) a provision requiring the appraisal firm to use the land values determined for the qualifying county under IC 6-1.1-4-13.6 ;
        (3) a penalty clause under which the amount to be paid for appraisal services is decreased for failure to complete specified services within the specified time;
        (4) a provision requiring the appraisal firm to make periodic reports to the state board of tax commissioners;
        (5) a provision stipulating the manner in which, and the time intervals at which, the periodic reports referred to in subdivision (4) are to be made;
        (6) a precise stipulation of what service or services are to be provided;
        (7) a provision requiring the appraisal firm to deliver a report of the assessed value of each parcel in a township in the qualifying county to the state board of tax commissioners; and
        (8) any other provisions required by the state board of tax commissioners.
    (d) After receiving the report of assessed values from the appraisal firm, the state board of tax commissioners shall give notice to the taxpayer and the county assessor, by mail, of the amount of the reassessment. The notice of reassessment is subject to appeal by the taxpayer under IC 6-1.1-15.
    (e) The state board of tax commissioners shall mail the notice required by subsection (d) within ninety (90) days after the board receives the report for a parcel from the professional appraisal firm.
    (f) The cost of a contract under this section shall be paid from the property reassessment fund of the qualifying county established under IC 6-1.1-4-27.

SOURCE: IC 6-1.1-6.8; (01)AM190202.2. -->     SECTION 2. IC 6-1.1-6.8 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2001 (RETROACTIVE)]:
     Chapter 6.8. Residential Assessments, Deductions, and Exemptions in Qualifying Counties
     Sec. 1. As used in this chapter, "agreed to procedures report" means a report based on procedures agreed to by an independent nationally recognized certified public accounting firm and the state board of tax commissioners on the accuracy of the implementation:
        (1) of minimum assessed values under sections 7 and 8 of this chapter in a qualifying county by:
            (A) the township assessors of the townships in the qualifying county; and
            (B) the county property tax assessment board of appeals of the qualifying county;
        (2) by the county auditor of the qualifying county of maximum combined deductions under section 10 of this chapter;
        (3) of the limitation on net assessed value under section 11 of this chapter by:
            (A) the township assessors of the townships in the qualifying county;
            (B) the county auditor of the qualifying county; and
            (C) the county property tax assessment board of appeals of the qualifying county;
        (4) by the county auditor of the qualifying county of the limitations under IC 6-1.1-12 on the application against the assessed values of multiple parcels of deductions under a section in an amount that exceeds the maximum deduction amount stated in the section; and
        (5) by the county property tax assessment board of appeals of the qualifying county of the exemption limitation under IC 6-1.1-10-16 (d)(3).

    Sec. 2. As used in this chapter, "legislative body" has the meaning set forth in IC 36-1-2-9.
     Sec. 3. As used in this chapter, "net assessed value" means the remainder of:
        (1) the combined assessed value of a single family residence and the single family residence land upon which the residence is located; minus
        (2) the combined deductions under IC 6-1.1-12 applicable to

the combined assessed value of the single family residence and the single family residence land upon which the residence is located.
    Sec. 4. As used in this chapter, "qualifying county" means a county having a population of more than four hundred thousand (400,000) but less than seven hundred thousand (700,000).
     Sec. 5. As used in this chapter, "single family residence" means a building designed to house one (1) family.
    Sec. 6. As used in this chapter, "single family residence land" means the parcel of land on which a single family residence:
        (1) is located; or
        (2) has been located within the ten (10) years immediately preceding the assessment date for which a minimum assessed value is determined under this chapter.
    Sec. 7. The minimum assessed value of a single family residence located in a qualifying county is forty-two thousand dollars ($42,000).
    Sec. 8. The minimum assessed value of single family residence land located in a qualifying county is three thousand dollars ($3,000).

     Sec. 9. A minimum assessed value under this chapter is presumed to be accurate unless the inaccuracy of the minimum assessment is established by clear and convincing evidence.
     Sec. 10. The maximum combined deductions under IC 6-1.1-12 applicable to the combined assessed value of a single family residence and the single family residence land upon which the residence is located in a qualifying county is twelve thousand dollars ($12,000).
    Sec. 11. The application of deductions under IC 6-1.1-12 may not reduce the net assessed value of a single family residence and the single family residence land upon which the residence is located in a qualifying county to an amount less than thirty-three thousand dollars ($33,000).

    Sec. 12. With respect to each year in which a general reassessment of real property is completed as required under section 4 of this chapter, the state board of tax commissioners shall contract for an independent nationally recognized certified public accounting firm to:


        (1) conduct a review of the accuracy of the implementations referred to in section 1(1) through 1(5) of this chapter; and
        (2) prepare an agreed to procedures report.
    Sec. 13. The state board of tax commissioners shall contract under section 12 of this chapter with the same firm that contracts with the board under IC 6-1.1-4-32 (d).

     Sec. 14. The firm that prepares the agreed to procedures report shall submit the report to:
        (1) the legislative body of the qualifying county;
        (2) the prosecuting attorney of the qualifying county;
        (3) the state board of tax commissioners; and
        (4) the attorney general.
    Sec. 15. If the state board of tax commissioners determines from the agreed to procedures report that the minimum assessed values established in this chapter were not accurately applied in the qualifying county, or in any part of the qualifying county, the state board shall implement the minimum assessed values using its authority to reassess property under IC 6-1.1-14-10.
    Sec. 16. If the state board of tax commissioners determines from the agreed to procedures report that the implementations referred to in section 1(2) through 1(5) of this chapter were not accurate in the qualifying county, or in any part of the qualifying county, the state board shall correct the implementations. The state board of tax commissioners may correct the implementations subject to the same authority and limitations that apply to the reassessment of property by the state board under IC 6-1.1-14-10.

SOURCE: IC 6-1.1-12-1; (01)AM190202.3. -->     SECTION 3. IC 6-1.1-12-1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 1. (a) Each year a person who is a resident of this state may receive a deduction from the assessed value of:
        (1) mortgaged real property that he owns; or
        (2) real property that he is buying under a contract, with the contract or a memorandum of the contract recorded in the county recorder's office, which provides that he is to pay the property taxes on the real property.
    (b) 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 on the

assessment date of that year;
        (2) one-half (1/2) of the assessed value of the real property; or
        (3) three thousand dollars ($3,000);
whichever is least.
    (c) A person who has sold real property to another person under a contract which provides that the contract buyer is to pay the property taxes on the real property may not claim the deduction provided under this section with respect to that real property.
     (d) The amount of a deduction to which a person is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.

SOURCE: IC 6-1.1-12-9; (01)AM190202.4. -->     SECTION 4. IC 6-1.1-12-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 9.(a) An individual may obtain a deduction from the assessed value of the individual's real property, or mobile home which is not assessed as real property, if:
        (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 thousand dollars ($25,000);
        (3) the individual has owned the real property or mobile home for at least one (1) year before claiming the deduction; or the individual has been buying the real property under a contract that provides that the individual is to pay the property taxes on the real property or mobile 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 or in the mobile home;
        (5) the assessed value of the real property or mobile home does

not exceed sixty-three thousand dollars ($69,000); and
        (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, and 38 of this chapter.
    (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) six thousand dollars ($6,000).
    (c) Except as provided in subsection (h), in the case of a mobile 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
        (2) six thousand dollars ($6,000).
    (d) An individual may not be denied the deduction provided under this section because the individual is absent from the real property or a mobile home while in a nursing home or hospital.
    (e) For purposes of this section, if real property or a mobile 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)(6).
    (g) An individual who has sold real property to another person under a 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.
     (i) The amount of a deduction to which an individual is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.
SOURCE: IC 6-1.1-12-11; (01)AM190202.5. -->     SECTION 5. IC 6-1.1-12-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 11. (a) An individual may have the sum of six thousand dollars ($6,000) deducted from the assessed value of real property that the individual owns, or that the individual is buying under a contract that provides that the individual is to pay property taxes on the real property, if the contract or a memorandum of the contract is recorded in the county recorder's office, and if:
        (1) the individual is blind or the individual is a disabled person;
        (2) the real property is principally used and occupied by the individual as the individual's residence; and
        (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).
    (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, "disabled person" 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) Disabled persons filing claims 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) A disabled person not covered under the federal Social Security Act shall be examined by a physician and the individual's status as a disabled person 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 to another person under a 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) The amount of a deduction to which an individual is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.
SOURCE: IC 6-1.1-12-13; (01)AM190202.6. -->     SECTION 6. IC 6-1.1-12-13 , AS AMENDED BY P.L.123-1999, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 13. (a) An individual may have twelve thousand dollars ($12,000) deducted from the assessed value of the taxable tangible property that the individual owns, or real property that the individual is buying under a contract that provides that the individual is to pay property taxes on the real property, if the contract or a memorandum of the contract is recorded in the county recorder's office and if:
        (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 is disabled with a service connected disability of ten percent (10%) or more; and
        (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.
    (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 to another person under a 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.
     (e) The amount of a deduction to which an individual is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.
SOURCE: IC 6-1.1-12-14; (01)AM190202.7. -->     SECTION 7. IC 6-1.1-12-14 , AS AMENDED BY P.L.123-1999, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 14. (a) Except as provided in subsection (c), an individual may have the sum of six thousand dollars ($6,000) deducted from the assessed value of the tangible property that the individual owns (or the real property that the individual is buying under a contract that provides that the individual is to pay property taxes on the real property if the contract or a memorandum of the contract is recorded in the county recorder's office) if:
        (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) is totally disabled; or
            (B) is at least sixty-two (62) years old and has a disability of at least ten percent (10%); and
        (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.
    (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 fifty-four thousand dollars ($54,000).
    (d) An individual who has sold real property to another person under a 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.
     (e) The amount of a deduction to which an individual is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.
SOURCE: IC 6-1.1-12-16; (01)AM190202.8. -->     SECTION 8. IC 6-1.1-12-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 16. (a) A surviving spouse may have the sum of nine thousand dollars ($9,000) deducted from the assessed value of his or her tangible property, or real property that the surviving spouse is buying under a contract that provides that he is to pay property taxes on the real property, if the contract or a memorandum of the contract is recorded in the county recorder's office, and if:
        (1) the deceased spouse served in the military or naval forces of the United States before November 12, 1918; and
        (2) the deceased spouse received an honorable discharge.
    (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 to another person under a 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.
     (d) The amount of a deduction to which a surviving spouse is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.
SOURCE: IC 6-1.1-12-17.4; (01)AM190202.9. -->     SECTION 9. IC 6-1.1-12-17.4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 17.4. (a) A World War I veteran who is a resident of Indiana is entitled to have the sum of nine thousand dollars ($9,000) deducted from the assessed valuation of the real property the veteran owns or is buying under a contract that requires the veteran to pay property taxes on the real property if the

contract or a memorandum of the contract is recorded in the county recorder's office, including a mobile home which is assessed as real property, if:
        (1) the real property is the veteran's principal residence;
        (2) the assessed valuation of the real property does not exceed seventy-eight thousand dollars ($78,000); and
        (3) the veteran owns the real property for at least one (1) year before claiming the deduction.
    (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 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 to another person under a 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 with respect to that real property.
     (e) The amount of a deduction to which an individual is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.

SOURCE: IC 6-1.1-12-18; (01)AM190202.10. -->     SECTION 10. IC 6-1.1-12-18 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 18. (a) If the assessed value of residential real property described in subsection (d) of this section is increased because it has been rehabilitated, the owner may have deducted from the assessed value of the property an amount not to exceed the lesser of:
        (1) the total increase in assessed value resulting from the rehabilitation; or
        (2) nine thousand dollars ($9,000) per rehabilitated dwelling unit.
The owner is entitled to this deduction annually for a five (5) year period.
    (b) For purposes of this section, the term "rehabilitation" means repairs, replacements, or improvements which are intended to increase the livability, utility, safety, or value of the property and which do not increase the total amount of floor space devoted to residential purposes

unless the increase in floor space is required in order to make the building comply with a local housing code or zoning ordinance.
    (c) For the purposes of this section, the term "owner" or "property owner" includes any person who has the legal obligation, or has otherwise assumed the obligation, to pay the real property taxes on the rehabilitated property.
    (d) The deduction provided by this section applies only for the rehabilitation of residential real property which is located within this state and which is described in one (1) of the following classifications:
        (1) a single family dwelling if before rehabilitation the assessed value (excluding any exemptions or deductions) of the improvements does not exceed eighteen thousand dollars ($18,000);
        (2) a two (2) family dwelling if before rehabilitation the assessed value (excluding exemptions or deductions) of the improvements does not exceed twenty-four thousand dollars ($24,000) and
        (3) a dwelling with more than two (2) family units if before rehabilitation the assessed value (excluding any exemptions or deductions) of the improvements does not exceed nine thousand dollars ($9,000) per dwelling unit.
     (e) The amount of a deduction to which an owner is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.

SOURCE: IC 6-1.1-12-22; (01)AM190202.11. -->     SECTION 11. IC 6-1.1-12-22 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 22. (a) If the assessed value of property is increased because it has been rehabilitated and the owner has paid at least ten thousand dollars ($10,000) for the rehabilitation, the owner is entitled to have deducted from the assessed value of the property an amount equal to fifty percent (50%) of the increase in assessed value resulting from the rehabilitation. The owner is entitled to this deduction annually for a five (5) year period. However, the maximum deduction which a property owner may receive under this section for a particular year is:
        (1) sixty thousand dollars ($60,000) for a single family dwelling unit; or
        (2) three hundred thousand dollars ($300,000) for any other type of property.
    (b) For purposes of this section, the term "property" means a

building or structure which was erected at least ten (10) years before the date of application for the deduction provided by this section. The term "property" does not include land.
    (c) For purposes of this section the term "rehabilitation" means the remodeling, repair, or betterment of property in any manner or any enlargement or extension of property. However, the enlargement or extension of the enclosed floor area of property shall, for computation of the deduction, be limited within a five (5) year period to a total additional enclosed floor area equal to the size of the enclosed floor area of the property on the date of completion of the first extension or enlargement completed after March 1, 1973.
     (d) The amount of a deduction to which an owner is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.

SOURCE: IC 6-1.1-12-26; (01)AM190202.12. -->     SECTION 12. IC 6-1.1-12-26 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 26. (a) The owner of real property, or a mobile home which is not assessed as real property, which is equipped with a solar energy heating or cooling system may have deducted annually from the assessed value of the real property or mobile home an amount which is equal to the remainder of (1) the assessed value of the real property or mobile home with the solar energy heating or cooling system included, minus (2) the assessed value of the real property or mobile home without the system.
    (b) The state board of tax commissioners shall promulgate rules and regulations for determining the value of a solar energy heating or cooling system. The rules and regulations must provide the method of determining the value on the basis of:
        (1) the cost of the system components that are unique to the system and that are needed to collect, store, or distribute solar energy; and
        (2) any other factor that is a just and proper indicator of value.
     (c) The amount of a deduction to which an owner is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.
SOURCE: IC 6-1.1-12-29; (01)AM190202.13. -->     SECTION 13. IC 6-1.1-12-29 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 29. (a) For purposes of this section, "wind power device" means a device, such as a windmill or a wind turbine, that is designed to utilize the kinetic energy of

moving air to provide mechanical energy or to produce electricity.
    (b) The owner of real property, or a mobile home that is not assessed as real property, that is equipped with a wind power device is entitled to an annual property tax deduction. The amount of the deduction equals the remainder of (1) the assessed value of the real property or mobile home with the wind power device included, minus (2) the assessed value of the real property or mobile home without the wind power device.
     (c) The amount of a deduction to which an owner is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.

SOURCE: IC 6-1.1-12-33; (01)AM190202.14. -->     SECTION 14. IC 6-1.1-12-33 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 33. (a) For purposes of this section "hydroelectric power device" means a device which is installed after December 31, 1981, and is designed to utilize the kinetic power of moving water to provide mechanical energy or to produce electricity.
    (b) The owner of real property, or a mobile home that is not assessed as real property, that is equipped with a hydroelectric power device is annually entitled to a property tax deduction. The amount of the deduction equals the remainder of: (1) the assessed value of the real property or mobile home with the hydroelectric power device; minus (2) the assessed value of the real property or mobile home without the hydroelectric power device.
     (c) The amount of a deduction to which an owner is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.
SOURCE: IC 6-1.1-12-34; (01)AM190202.15. -->     SECTION 15. IC 6-1.1-12-34 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 34. (a) For purposes of this section, "geothermal energy heating or cooling device" means a device that is installed after December 31, 1981, and is designed to utilize the natural heat from the earth to provide hot water, produce electricity, or generate heating or cooling.
    (b) The owner of real property, or a mobile home that is not assessed as real property, that is equipped with a geothermal energy heating or cooling device is annually entitled to a property tax deduction. The amount of the deduction equals the remainder of: (1) the assessed value of the real property or mobile home with the geothermal heating or

cooling device; minus (2) the assessed value of the real property or mobile home without the geothermal heating or cooling device.
     (c) The amount of a deduction to which an owner is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.

SOURCE: IC 6-1.1-12-37; (01)AM190202.16. -->     SECTION 16. IC 6-1.1-12-37 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 37. (a) Each year a person who is entitled to receive the homestead credit provided under IC 6-1.1-20.9 for property taxes payable in the following year is entitled to a standard deduction from the assessed value of the real property that qualifies for the homestead credit. The auditor of the county shall record and make the deduction for the person qualifying for the deduction.
    (b) The total amount of the deduction that a person may receive under this section for a particular year is the lesser of:
        (1) one-half (1/2) of the assessed value of the real property; or
        (2) six thousand dollars ($6,000).
    (c) A person who has sold real property to another person under a 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 with respect to that real property.
     (d) The amount of a deduction to which a person is entitled under this section is subject to the limitation established by IC 6-1.1-6.8-10.
SOURCE: IC 6-1.1-17-16; (01)AM190202.17. -->     SECTION 17. IC 6-1.1-17-16 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 16. (a) Subject to the limitations and requirements prescribed in this section, the state board of tax commissioners may revise, reduce, or increase a political subdivision's budget, tax rate, or tax levy which the board reviews under section 8 or 10 of this chapter.
    (b) Subject to the limitations and requirements prescribed in this section, the state board of tax commissioners may review, revise, reduce, or increase the budget, tax rate, or tax levy of any of the political subdivisions whose tax rates compose the aggregate tax rate within a political subdivision whose budget, tax rate, or tax levy is the subject of an appeal initiated under this chapter.
    (c) Except as provided in subsection (i), before the state board of tax commissioners reviews, revises, reduces, or increases a political

subdivision's budget, tax rate, or tax levy under this section, the board must hold a public hearing on the budget, tax rate, and tax levy. The board shall hold the hearing in the county in which the political subdivision is located. The board may consider the budgets, tax rates, and tax levies of several political subdivisions at the same public hearing. At least five (5) days before the date fixed for a public hearing, the board shall give notice of the time and place of the hearing and of the budgets, levies, and tax rates to be considered at the hearing. The board shall publish the notice in two (2) newspapers of general circulation published in the county. However, if only one (1) newspaper of general circulation is published in the county, the board shall publish the notice in that newspaper.
    (d) Except as provided in subsection (h), IC 6-1.1-19 , or IC 6-1.1-18.5 , the state board of tax commissioners may not increase a political subdivision's budget, tax rate, or tax levy to an amount which exceeds the amount originally fixed by the political subdivision. The state board of tax commissioners shall give the political subdivision written notification specifying any revision, reduction, or increase the state board of tax commissioners proposes in a political subdivision's tax levy or tax rate. The political subdivision has one (1) week from the date the political subdivision receives the notice to provide a written response to the state board of tax commissioners' Indianapolis office specifying how to make the required reductions in the amount budgeted for each office or department. The state board of tax commissioners shall make reductions as specified in the political subdivision's response if the response is provided as required by this subsection and sufficiently specifies all necessary reductions. The state board of tax commissioners may make a revision, a reduction, or an increase in a political subdivision's budget only in the total amounts budgeted for each office or department within each of the major budget classifications prescribed by the state board of accounts.
    (e) The state board of tax commissioners may not approve a levy for lease payments by a city, town, county, library, or school corporation if the lease payments are payable to a building corporation for use by the building corporation for debt service on bonds and if:
        (1) no bonds of the building corporation are outstanding; or
        (2) the building corporation has enough legally available funds on hand to redeem all outstanding bonds payable from the particular

lease rental levy requested.
    (f) The action of the state board of tax commissioners on a budget, tax rate, or tax levy is final. The board shall certify its action to:
        (1) the county auditor; and
        (2) the political subdivision if the state board acts pursuant to an appeal initiated by the political subdivision; and
        (3) for a municipality located in a qualifying county (as defined in IC 6-1.1-6.8-2 ), the department of state revenue.

    (g) The state board of tax commissioners is expressly directed to complete the duties assigned to it under this section not later than February 15th of each year for taxes to be collected during that year.
    (h) Subject to the provisions of all applicable statutes, the state board of tax commissioners may increase a political subdivision's tax levy to an amount that exceeds the amount originally fixed by the political subdivision if the increase is:
        (1) requested in writing by the officers of the political subdivision;
        (2) either:
            (A) based on information first obtained by the political subdivision after the public hearing under section 3 of this chapter; or
            (B) results from an inadvertent mathematical error made in determining the levy; and
        (3) published by the political subdivision according to a notice provided by the state board of tax commissioners.
    (i) The state board of tax commissioners shall annually review the budget of each school corporation not later than April 1. The state board of tax commissioners shall give the school corporation written notification specifying any revision, reduction, or increase the state board of tax commissioners proposes in the school corporation's


budget. A public hearing is not required in connection with this review of the budget.
SOURCE: ; (01)AM190202.18. -->     SECTION 18. An emergency is declared for this act.
    (Reference is to HB 1902 as introduced.)

and when so amended that said bill do pass.

__________________________________

Representative Stevenson


AM190202/DI 94    2001