Reprinted

February 14, 2003





HOUSE BILL No. 1474

_____


DIGEST OF HB 1474 (Updated February 13, 2003 2:06 PM - DI 92)



Citations Affected: IC 6-1.1; noncode.

Synopsis: Property tax deductions for veterans. Extends the disabled veteran property tax deductions to veterans who served in actual combat or other equally hazardous duty, regardless of time, or any foreign war, insurrection, or expedition that is recognized by a service or campaign medal of the United States. Increases the maximum assessed value for eligibility to claim a property tax deduction for individuals who are at least 65 years of age from $69,000 to $144,000. Increases the maximum assessed value for eligibility to claim a property tax deduction for veterans who are either totally disabled or at least 62 years of age and having a disability of at least 10% from $54,000 to $113,000. Increases the maximum assessed value for eligibility to claim a property tax deduction for WWI veterans from $78,000 to $163,000. Increases the maximum pre-rehabilitation assessed value for eligibility to claim a property tax deduction for the rehabilitation of residential real property to $38,000 for a single family dwelling, $50,000 for a two family dwelling, and $19,000 per unit in a structure containing more than two dwellings.

Effective: Upon passage; July 1, 2003.





Kersey , Kuzman , Thomas




    January 15, 2003, read first time and referred to Committee on Ways and Means.
    February 10, 2003, amended, reported _ Do Pass.
    February 13, 2003, read second time, amended, ordered engrossed.





Reprinted

February 14, 2003

First Regular Session 113th General Assembly (2003)


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 this style type.
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 this style type reconciles conflicts between statutes enacted by the 2002 Regular or Special Session of the General Assembly.

HOUSE BILL No. 1474



    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-1.1-12-9; (03)HB1474.2.1. -->     SECTION 1. IC 6-1.1-12-9, AS AMENDED BY P.L.291-2001, SECTION 131, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 9. (a) An individual may obtain a deduction from the assessed value of the individual's real property, or mobile home or manufactured 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-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 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 sixty-nine one hundred forty-four thousand dollars ($69,000); ($144,000); 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) 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) 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, 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)(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.

SOURCE: IC 6-1.1-12-13; (03)HB1474.2.2. -->     SECTION 2. IC 6-1.1-12-13, AS AMENDED BY P.L.291-2001, SECTION 135, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 13. (a) Except as provided in section 40.5 of this chapter, 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, a mobile home not assessed as real property, or a manufactured home not assessed as real property that the individual is buying under a contract that provides that the individual is to pay property taxes on the real property, mobile home, or manufactured home, 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:
             (A) any of its wars; or
            (B) actual combat or equally hazardous duty, regardless of time, or any foreign war, insurrection, or expedition, which service is recognized by the award of a service or campaign medal of the United States;

        (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, a mobile home not assessed as real property, or a manufactured home not assessed as real property to another person under a 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.
SOURCE: IC 6-1.1-12-14; (03)HB1474.2.3. -->     SECTION 3. IC 6-1.1-12-14, AS AMENDED BY P.L.291-2001, SECTION 136, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 14. (a) Except as provided in subsection (c) and except as provided in section 40.5 of this chapter, 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, mobile home not assessed as real property, or manufactured home not assessed as real property that the individual is buying under a contract that provides that the individual is to pay property taxes on the real property, mobile home, or manufactured home 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:
             (A) for at least ninety (90) days; or
            (B) during actual combat or equally hazardous duty, regardless of time, or service in any foreign war,

insurrection, or expedition, which service is recognized by the award of a service or campaign medal of the United States;
        
(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 one hundred thirteen thousand dollars ($54,000). ($113,000).
    (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 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.

SOURCE: IC 6-1.1-12-17.4; (03)HB1474.2.4. -->     SECTION 4. IC 6-1.1-12-17.4, AS AMENDED BY P.L.291-2001, SECTION 139, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 17.4. (a) Except as provided in section 40.5 of this chapter, 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 (including a mobile home that is assessed as real property), mobile home that is not assessed as real property, or manufactured home that is not assessed as 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, if:
        (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 seventy-eight one hundred sixty-three thousand dollars ($78,000); ($163,000); and
        (3) the veteran owns the real property, mobile home, or manufactured home 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, 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 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.
SOURCE: IC 6-1.1-12-18; (03)HB1474.2.5. -->     SECTION 5. IC 6-1.1-12-18, AS AMENDED BY P.L.90-2002, SECTION 110, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2003]: Sec. 18. (a) If the assessed value of residential real property described in subsection (d) 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 significant repairs, replacements, or improvements to an existing structure which are intended to increase the livability, utility, safety, or value of the property under rules adopted by the department of local government finance.
    (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 thirty-eight thousand dollars ($18,000); ($38,000).
        (2) A two (2) family dwelling if before rehabilitation the assessed value (excluding exemptions or deductions) of the improvements does not exceed twenty-four fifty thousand dollars ($24,000); ($50,000). 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 nineteen thousand dollars ($9,000) ($19,000) per dwelling unit.

SOURCE: ; (03)HB1474.2.6. -->     SECTION 6. [EFFECTIVE UPON PASSAGE] (a) The following, all as amended by this act, apply to property taxes first due and payable after December 31, 2003:
        (1) IC 6-1.1-12-9.
        (2) IC 6-1.1-12-13.
        (3) IC 6-1.1-12-14.
        (4) IC 6-1.1-12-17.4.
        (5) IC 6-1.1-12-18.

     (b) Notwithstanding any other law, a property owner entitled to a deduction for the first time under:
        (1) IC 6-1.1-12-9;
        (2) IC 6-1.1-12-13;
        (3) IC 6-1.1-12-14;
        (4) IC 6-1.1-12-17.4; or
        (5) IC 6-1.1-12-18;
all as amended by this act, may claim the deduction for property taxes first due and payable in 2004 if the property owner files the appropriate deduction application before July 1, 2003.
    (c) This SECTION expires December 31, 2004.

SOURCE: ; (03)HB1474.2.7. -->     SECTION 7. An emergency is declared for this act.