Introduced Version






SENATE BILL No. 470

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-20.6.

Synopsis: Property tax credit. Establishes, subject to approval by the county fiscal body, a credit for property taxes on a homestead and any other classification of property designated by the county fiscal body in the amount by which the taxes exceed 2% of the assessed value of the property.

Effective: Upon passage.





Mrvan




    January 18, 2005, read first time and referred to Committee on Tax and Fiscal Policy.







Introduced

First Regular Session 114th General Assembly (2005)


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SENATE BILL No. 470



    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 6-1.1-20.6; (05)IN0470.1.1. -->     SECTION 1. IC 6-1.1-20.6 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 20.6. Credit for Excessive Property Taxes
    Sec. 1. As used in this chapter:
        (1) "eligible property" means:
            (A) a homestead; and
            (B) any other classification of property designated by the county fiscal body under section 2 of this chapter.
        (2) "homestead" has the meaning set forth in IC 6-1.1-20.9-1; and
        (3) "property tax liability" means liability for the tax imposed on property under this article determined after application of all credits and deductions under this article, except the credit under this chapter, but does not include any interest or penalty imposed under this article.
    Sec. 2. A county fiscal body that proposes to allow the credit

under this chapter shall adopt an ordinance to identify eligible property to which the credit applies as:
        (1) only homesteads; or
        (2) homesteads and one (1) or more other classifications of property.
    Sec. 3. (a) The county fiscal body may adopt an ordinance to authorize the application of a credit under this chapter for one (1) or more calendar years to eligible property in the county.
    (b) A county fiscal body adopting an ordinance under subsection (a) must adopt the ordinance under subsection (a) before July 1 of a calendar year to authorize a credit under this chapter for property taxes first due and payable in the immediately succeeding calendar year.
    Sec. 4. If a credit under this chapter is authorized under section 3 of this chapter for property taxes first due and payable in a calendar year:
        (1) a person is entitled to a credit against the person's property tax liability for property taxes first due and payable in that calendar year attributable to the person's
eligible property located in the county; and
        (2) the amount of the credit is the amount by which the person's property tax liability attributable to the person's eligible property for property taxes first due and payable in that calendar year exceeds two percent (2%) of the gross assessed value that is the basis for determination of property taxes on the eligible property for property taxes first due and payable in that calendar year.
    Sec. 5. A person is not required to file an application for a credit under this chapter. The county auditor shall:
        (1) identify eligible property in the county; and
        (2) apply a credit under this chapter to property tax liability on the identified eligible property.

SOURCE: ; (05)IN0470.1.2. -->     SECTION 2. [EFFECTIVE UPON PASSAGE] IC 6-1.1-20.6, as added by this act, applies only to property taxes first due and payable after December 31, 2005.
SOURCE: ; (05)IN0470.1.3. -->     SECTION 3. An emergency is declared for this act.