YES:
MR. SPEAKER:
Your Committee on Ways and Means , to which was referred Senate Bill 286 ,
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 the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
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) If an assessed value increase referred to in subsection (a)
is attributable to both rehabilitation and:
(1) a general reassessment of real property under
IC 6-1.1-4-4; or
(2) an annual adjustment of the assessed value of real
property under IC 6-1.1-4-4.5;
the township assessor shall determine the amount of the increase
attributable to rehabilitation for purposes of determining the
deduction provided by this section. In making the determination
under this subsection, the township assessor shall consider any
information contained in the application under section 20(e) of
this chapter.
assessment date.
(b) A property owner may:
(1) in a year after the year referred to in subsection (a),
obtain a deduction that:
(A) would otherwise first apply for the assessment date in
2004 or a later year; and
(B) was not made to the assessed value for any year; or
(2) obtain a deduction that:
(A) would otherwise have first applied for the assessment
date in 2003 or an earlier year; and
(B) was not made to the assessed value for any year.
If the property owner obtains a deduction under this subsection,
the deduction applies in the year for which the application is filed
and continues for each of the immediately following four (4) years
in which the property owner remains the owner of the property as
of the assessment date.
(c) Any general reassessment of real property which occurs within
the five (5) year period of the deduction does not affect the amount of
the deduction.
mobile home not assessed as real property, or manufactured home not
assessed as 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) 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) one-half (1/2) 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) for:
(A) 2003 and 2004, thirty-five thousand dollars ($35,000);
and
(B) 2005 and thereafter, thirty-seven thousand dollars
($37,000).
(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 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.
is prima facie evidence that a building and the land on which it is
located contains the number of principal rental dwellings specified
in the certificate. To comply with this subsection, the certificate
of occupancy must:
(1) be prepared on a form prescribed by the department of
local government finance;
(2) be signed under penalties of perjury by the owner of the
building containing a rental unit or the principal officer of
the entity owning the building; and
(3) indicate that:
(A) with respect to a building that contains one (1) rental
unit, the unit was used as a principal rental dwelling; and
(B) with respect to a building that contains more than one
(1) unit, substantially all the units in the building were
used as principal rental dwelling units;
on an assessment date or within two (2) years before the
assessment date.
(c) To obtain the deduction under this section, the:
(1) owner of the building containing a principal rental
dwelling; or
(2) principal officer for the cooperative, common interest
community, owner's association, or other entity owning the
building;
must file a certified application in duplicate, on forms prescribed
by the department of local government finance, with the auditor
of the county in which the property is subject to assessment. The
certified application must be filed before May 11 in the year
containing the assessment date to which the application applies.
(d) If the owner of a building containing a principal rental
dwelling is eligible to receive:
(1) a homestead credit for the building under IC 6-1.1-20.9;
or
(2) the standard deduction for the building under section 37
of this chapter;
the owner may not claim the deduction provided under this
section.
(e) If a parcel of land contains more than one (1) building for
which a deduction is claimed under this section, the township
assessor shall allocate the assessed value of the land among the
buildings on the parcel in proportion to the assessed value of each
building. The county auditor shall use the allocated assessed value
of land under this section in determining the amount of the
deduction that is to be granted under this section.
the farm production activities.
(C) Performing physical work that significantly
contributes to the farm production activities.
(2) Leasing the land to another person if the individuals who
engaged in the activities described in subdivision (1) on the
leased land are eligible individuals described in section 6(c)
of this chapter.
Sec. 3. As used in this chapter, "agricultural land" means land
assessed as agricultural land under IC 6-1.1-4-13.
Sec. 4. As used in this chapter, "application" refers to an
application under this chapter.
Sec. 5. As used in this chapter, "eligible farm" refers to land
described in section 1 of this chapter.
Sec. 6. (a) As used in this chapter, "eligible individuals" means
any combination of individuals described in subsection (b) or (c).
(b) The following owners are eligible individuals:
(1) An individual who owns at least a fifty-one percent (51%)
ownership interest in land that is the subject of an
application.
(2) Related individuals who together:
(A) own at least a fifty-one percent (51%) ownership
interest in the land that is the subject of an application; or
(B) have at least fifty-one percent (51%) of the ownership
and control rights for an entity that has a one hundred
percent (100%) ownership interest in the land that is the
subject of an application;
or will qualify under clause (A) or (B) after any tangible or
intangible interest of a deceased related individual is
distributed from the deceased related individual's estate.
(c) For purposes of leased agricultural land, the following are
eligible individuals:
(1) An individual who has at least a fifty-one percent (51%)
contract interest in a lease of land that is the subject of an
application; or
(2) related individuals who together:
the tracts in an eligible farm in the manner prescribed by the
department of local government finance.
Sec. 17. An eligible farm that would otherwise qualify for a
farmland credit under this chapter is ineligible if:
(1) any owner is an owner of another eligible farm that is
granted a farmland credit under this chapter; or
(2) any shareholder, partner, member, or beneficiary of an
owner is:
(A) an owner; or
(B) a shareholder, partner, member, or beneficiary of an
entity that is an owner;
of any other eligible farm that is granted a farmland credit
under this chapter.
Sec. 18. The owners of an eligible farm, or an owner acting as
the agent of all of the owners of an eligible farm, that desire to
claim the farmland credit provided by this chapter must file a
certified application, under penalty of perjury, on forms and in the
manner prescribed by the department of local government
finance, with the county auditor of the county in which the eligible
farm is located.
Sec. 19. The application must include the following information:
(1) The parcel numbers or key numbers for the eligible farm.
(2) The name of the townships in which the eligible farm is
located.
(3) The total farm acreage in the eligible farm.
(4) The names of the owners of the eligible farm.
(5) The names of each shareholder, partner, member, or
beneficiary of any entity that is an owner of the eligible
farm.
(6) Whether:
(A) an owner;
(B) a shareholder, partner, member, or beneficiary of the
owner; or
(C) any entity in which a shareholder, partner, member,
or beneficiary of the owner is a shareholder, partner,
member, or beneficiary;
has applied for or been granted a farmland credit for another
eligible farm.
(7) Any other information required by the department of
local government finance.
Sec. 20. A statement filed before May 11 in a year:
(1) first applies to taxes first due and payable in the
immediately succeeding year; and
(2) unless the land that is the subject of the farmland credit
ceases to qualify for the farmland credit, each year
thereafter.
Sec. 21. The county auditor shall approve farmland credits for
eligible farms that qualify for a farmland credit under this
chapter.
Sec. 22. As soon as practicable after an application is approved,
the county auditor shall submit to the department of local
government, on the form required by the department of local
government, the information concerning an application that is
prescribed by the department of local government finance.
Sec. 23. The department of local government finance shall
establish a program to assist county auditors in determining
whether eligible farms are disqualified under section 17 of this
chapter from receiving a farmland credit.
Sec. 24. If:
(1) land ceases in any part to qualify for a farmland credit
under this chapter;
(2) there is a change in:
(A) the ownership of the land that is the subject of a
farmland credit; or
(B) the ownership of an entity that is an owner of the land
that is the subject of a farmland credit; or
(3) ownership of an individual who is receiving the farmland
credit provided by this chapter changes the use of the
individual's real property or structures, buildings, and
improvements;
individual's homestead. However, only one (1) individual may receive
a credit under this chapter for a particular homestead in a particular
year.
(b) Subject to IC 6-1.1-21-5, the amount of the credit to which the
individual is entitled equals the product of:
(1) the percentage prescribed in subsection (d); multiplied by
(2) the amount of the individual's property tax liability, as that term
is defined in IC 6-1.1-21-5, which is:
(A) attributable to the homestead during the particular calendar
year; and
(B) determined after the application of the property tax
replacement credit under IC 6-1.1-21.
(c) For purposes of determining that part of an individual's property
tax liability that is attributable to the individual's homestead, all
deductions from assessed valuation which the individual claims under
IC 6-1.1-12 or IC 6-1.1-12.1 for property on which the individual's
homestead is located must be applied first against the assessed value of
the individual's homestead before those deductions are applied against
any other property.
(d) The percentage of the credit referred to in subsection (b)(1) is
as follows:
YEAR PERCENTAGE
OF THE CREDIT
1996 8%
1997 6%
1998 through 2002 10%
2003 and thereafter 20%
However, the property tax replacement fund board established under
IC 6-1.1-21-10, in its sole discretion, may increase the percentage of
the credit provided in the schedule for any year, if the board feels that
the property tax replacement fund contains enough money for the
resulting increased distribution. If the board increases the percentage of
the credit provided in the schedule for any year, the percentage of the
credit for the immediately following year is the percentage provided in
the schedule for that particular year, unless as provided in this
subsection the board in its discretion increases the percentage of the
credit provided in the schedule for that particular year. However, the
percentage credit allowed in a particular county for a particular year
shall be increased if on January 1 of a year an ordinance adopted by a
county income tax council was in effect in the county which increased
the homestead credit. The amount of the increase equals the amount
designated in the ordinance.
(e) Before October 1 of each year, the assessor shall furnish to the
county auditor the amount of the assessed valuation of each homestead
for which a homestead credit has been properly filed under this chapter.
(f) The county auditor shall apply the credit equally to each
installment of taxes that the individual pays for the property.
(g) Notwithstanding the provisions of this chapter, a taxpayer other
than an individual is entitled to the credit provided by this chapter if:
(1) an individual uses the residence as the individual's principal
place of residence;
(2) the residence is located in Indiana;
(3) the individual has a beneficial interest in the taxpayer;
(4) the taxpayer either owns the residence or is buying it under a
contract, recorded in the county recorder's office, that provides
that the individual is to pay the property taxes on the residence;
and
(5) the residence consists of a single-family dwelling and the real
estate, not exceeding one (1) acre, that immediately surrounds that
dwelling.
contain all or part of an economic development district that meets the
requirements of section 5.5 of this chapter, the department of local
government finance shall estimate an additional distribution for the
county in the same report required under subsection (a). This additional
distribution equals the sum of the amounts determined under the
following STEPS for all taxing districts in the county that contain all or
part of an economic development district:
STEP ONE: Estimate that part of the sum of the amounts under
section 2(g)(1)(A) and 2(g)(2) of this chapter that is attributable
to the taxing district.
STEP TWO: Divide:
(A) that part of the estimated property tax replacement amount
attributable to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the taxes levied in the taxing district that are allocated to a
special fund under IC 6-1.1-39-5.
(d) The sum of the amounts determined under subsections (a)
through (c) is the particular county's estimated distribution for the
calendar year.
all or part of an economic development district:
STEP ONE: Determine that part of the sum of the amounts
under section 2(g)(1)(A) and 2(g)(2) of this chapter that is
attributable to the taxing district.
STEP TWO: Divide:
(A) that part of the subdivision (1) amount that is attributable
to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; times
(B) the taxes levied in the taxing district that are allocated to
a special fund under IC 6-1.1-39-5; plus
(4) the total amount of farmland credits that are provided
under IC 6-1.1-20.6 and allowed by each county for that year.
(b) Except as provided in subsection (e), between March 1 and
August 31 of each year, the department shall distribute to each county
treasurer from the property tax replacement fund one-half (1/2) of the
estimated distribution for that year for the county. Between September
1 and December 15 of that year, the department shall distribute to each
county treasurer from the property tax replacement fund the remaining
one-half (1/2) of each estimated distribution for that year. The amount
of the distribution for each of these periods shall be according to a
schedule determined by the property tax replacement fund board under
section 10 of this chapter. The estimated distribution for each county
may be adjusted from time to time by the department to reflect any
changes in the total county tax levy upon which the estimated
distribution is based.
(c) On or before December 31 of each year or as soon thereafter as
possible, the department shall make a final determination of the amount
which should be distributed from the property tax replacement fund to
each county for that calendar year. This determination shall be known
as the final determination of distribution. The department shall distribute
to the county treasurer or receive back from the county treasurer any
deficit or excess, as the case may be, between the sum of the
distributions made for that calendar year based on the estimated
distribution and the final determination of distribution. The final
determination of distribution shall be based on the auditor's abstract filed
with the auditor of state, adjusted for postabstract adjustments included
in the December settlement sheet for the year, and such additional
information as the department may require.
(d) All distributions provided for in this section shall be made on
warrants issued by the auditor of state drawn on the treasurer of state.
If the amounts allocated by the department from the property tax
replacement fund exceed in the aggregate the balance of money in the
fund, then the amount of the deficiency shall be transferred from the
state general fund to the property tax replacement fund, and the auditor
of state shall issue a warrant to the treasurer of state ordering the
payment of that amount. However, any amount transferred under this
section from the general fund to the property tax replacement fund
shall, as soon as funds are available in the property tax replacement
fund, be retransferred from the property tax replacement fund to the
state general fund, and the auditor of state shall issue a warrant to the
treasurer of state ordering the replacement of that amount.
(e) Except as provided in subsection (i), the department shall not
distribute under subsection (b) and section 10 of this chapter the money
attributable to the county's property reassessment fund if:
(1) by the date the distribution is scheduled to be made, (1) the
county auditor has not sent a certified statement required to be
sent by that date under IC 6-1.1-17-1 to the department of local
government finance; or
(2) by the deadline under IC 36-2-9-20, the county auditor has not
transmitted data as required under that section; or
(2) (3) the county assessor has not forwarded to the department
of local government finance the duplicate copies of all
approved exemption applications required to be forwarded by that
date under IC 6-1.1-11-8(a).
(f) Except as provided in subsection (i), if the elected township
assessors in the county, the elected township assessors and the county
assessor, or the county assessor has not transmitted to the department
of local government finance by October 1 of the year in which the
distribution is scheduled to be made the data for all townships in the
county required to be transmitted under IC 6-1.1-4-25(b), the state
board or the department shall not distribute under subsection (b) and
section 10 of this chapter a part of the money attributable to the
county's property reassessment fund. The portion not distributed is the
amount that bears the same proportion to the total potential distribution
as the number of townships in the county for which data was not
transmitted by August 1 October 1 as described in this section bears to
the total number of townships in the county.
(g) Money not distributed under subsection (e) for the reasons stated
in subsection (e)(1) and (e)(2) shall be distributed to the county when:
(1) the county auditor sends to the department of local
government finance the certified statement required to be sent
under IC 6-1.1-17-1; and
(2) the county assessor forwards to the department of local
government finance the approved exemption applications required
to be forwarded under IC 6-1.1-11-8(a);
with respect to which the failure to send or forward resulted in the
withholding of the distribution under subsection (e).
(h) Money not distributed under subsection (f) shall be distributed
to the county when the elected township assessors in the county, the
elected township assessors and the county assessor, or the county
assessor transmits to the department of local government finance the
data required to be transmitted under IC 6-1.1-4-25(b) with respect to
which the failure to transmit resulted in the withholding of the
distribution under subsection (f).
(i) The restrictions on distributions under subsections (e) and (f) do
not apply if the department of local government finance determines that:
(1) the failure of:
(A) a county auditor to send a certified statement; or
(B) a county assessor to forward copies of all approved
exemption applications;
as described in subsection (e); or
(2) the failure of an official to transmit data as described in
subsection (f);
is justified by unusual circumstances.
credit amount for taxes which:
(1) under IC 6-1.1-22-9 are due and payable in May and
November of that year; or
(2) under IC 6-1.1-22-9.5 are due in installments established by
the department of local government finance for that year.
The credit shall be applied to each installment of taxes. The dollar
amount of the credit for each taxpayer shall be determined by the
county auditor, based on data furnished by the department of local
government finance.
(b) The tax liability of a taxpayer for the purpose of computing the
credit for a particular year shall be based upon the taxpayer's tax liability
as is evidenced by the tax duplicate for the taxes payable in that year,
plus the amount by which the tax payable by the taxpayer had been
reduced due to the application of county adjusted gross income tax
revenues to the extent the county adjusted gross income tax revenues
were included in the determination of the total county tax levy for that
year, as provided in sections 2(g) and 3 of this chapter, adjusted,
however, for any change in assessed valuation which may have been
made pursuant to a post-abstract adjustment if the change is set forth
on the tax statement or on a corrected tax statement stating the
taxpayer's tax liability, as prepared by the county treasurer in
accordance with IC 6-1.1-22-8(a). However, except when using the
term under section 2(l)(1) of this chapter, the tax liability of a taxpayer
does not include the amount of any property tax owed by the taxpayer
that is attributable to that part of any property tax levy subtracted under
section 2(g)(1)(B), 2(g)(1)(C), 2(g)(1)(D), 2(g)(1)(E), 2(g)(1)(F),
2(g)(1)(G), 2(g)(1)(H), 2(g)(1)(I), 2(g)(1)(J), or 2(g)(1)(K) of this
chapter in computing the total county tax levy.
(c) The credit for taxes payable in a particular year with respect to
mobile homes which are assessed under IC 6-1.1-7 is equivalent to the
taxpayer's property tax replacement credit amount for the taxes payable
with respect to the assessments plus the adjustments stated in this
section.
(d) Each taxpayer in a taxing district that contains all or part of an
economic development district that meets the requirements of section
5.5 of this chapter is entitled to an additional credit for property tax
replacement. This credit is equal to the product of:
amended by this act. The appropriation made by this subsection is
supplemental to all other appropriations made to the property tax
replacement board in P.L.224-2003, SECTION 10. For purposes of
applying IC 6-1.1-20.6-26, as added by this act, to farmland credits
for property taxes first due and payable in calendar year 2005, the
amount appropriated for farmstead credits shall be treated as
seventy million dollars ($70,000,000). The amount appropriated by
this SECTION constitutes the amount necessary to pay the first
two (2) distributions required under IC 6-1.1-21-10 for property
taxes first due and payable in calendar year 2005. The general
assembly will appropriate the remainder necessary for calendar
year 2005 as part of the budget bill applicable to the next
biennium beginning July 1, 2005.
(e) The department of local government finance may adopt
temporary rules in the manner provided in IC 4-22-2-37.1 for the
adoption of emergency rules to implement IC 6-1.1-20.6, as added
by this act, and this SECTION. A temporary rule adopted under
this SECTION expires on the earlier of the following:
(1) The date that another temporary rule is adopted under
this SECTION or a permanent rule is adopted under
IC 4-22-2 to supersede a previously adopted temporary rule.
(2) July 1, 2005.
and when so amended that said bill do pass.