Introduced Version






SENATE BILL No. 291

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-12-9; IC 6-1.1-12-10.1.

Synopsis: Eligibility for property tax deduction for elderly. Eliminates the assessed value limitation for the property tax deduction for the residence of a low income individual who is at least 65 years of age.

Effective: Upon passage.





Young R




    January 9, 2006, read first time and referred to Committee on Tax and Fiscal Policy.







Introduced

Second Regular Session 114th General Assembly (2006)


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 2005 Regular Session of the General Assembly.

SENATE BILL No. 291



    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; (06)IN0291.1.1. -->     SECTION 1. IC 6-1.1-12-9 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: 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 one hundred forty-four thousand dollars ($144,000); and
        (6) (5) 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) twelve thousand four hundred eighty dollars ($12,480).
    (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) twelve thousand four hundred eighty dollars ($12,480).
    (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). (a)(5).
    (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 is 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 6-1.1-12-10.1; (06)IN0291.1.2. -->     SECTION 2. IC 6-1.1-12-10.1 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 10.1. (a) Except as provided in section 17.8 of this chapter, an individual who desires to claim the deduction provided by section 9 of this chapter must file a sworn statement, on forms prescribed by the department of local government finance, with the auditor of the county in which the real property, mobile home, or manufactured home is located. With respect to real property, the statement must be filed during the twelve (12) months before May 11 of each year for which the individual wishes to obtain the deduction. With respect to a mobile home that is not assessed as real property or a manufactured home that is not assessed as real property, the statement must be filed between January 15 and March 31, inclusive of each year for which the individual wishes to obtain the deduction. The statement may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing.
    (b) The statement referred to in subsection (a) shall be in affidavit form or require verification under penalties of perjury. The statement must be filed in duplicate if the applicant owns, or is buying under a contract, real property, a mobile home, or a manufactured home subject to assessment in more than one (1) county or in more than one (1)

taxing district in the same county. The statement shall contain:
        (1) the source and exact amount of gross income received by the individual and his the individual's spouse during the preceding calendar year;
        (2) the description and assessed value of the real property, mobile home, or manufactured home;
        (3) the individual's:
             (A) full name; and his
            (B)
complete residence address;
        (4) the record number and page where the contract or memorandum of the contract is recorded if the individual is buying the real property, mobile home, or manufactured home on contract; and
        (5) any additional information which the department of local government finance may require.
    (c) In order to substantiate his a deduction statement, the applicant shall submit for inspection by the county auditor a copy of his the applicant's income tax returns and a copy of his the applicant's spouse's income tax returns for the preceding calendar year. If either was not required to file an income tax return, the applicant shall subscribe to that fact in the deduction statement.

SOURCE: ; (06)IN0291.1.3. -->     SECTION 3. [EFFECTIVE UPON PASSAGE] (a) IC 6-1.1-12-9 and IC 6-1.1-12-10.1, both as amended by this act, apply only to property taxes first due and payable after December 31, 2006.
    (b) Notwithstanding any other law, an individual entitled to a deduction for the first time under IC 6-1.1-12-9, as amended by this act, may claim the deduction for property taxes first due and payable in 2007 if the individual files the appropriate deduction application before July 1, 2006.
    (c) This SECTION expires December 31, 2007.

SOURCE: ; (06)IN0291.1.4. -->     SECTION 4. An emergency is declared for this act.