Introduced Version






HOUSE BILL No. 1015

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-12.5.

Synopsis: Residential property tax deduction. Establishes a property tax deduction that phases in the increased assessed value from rehabilitation or enlargement of residential real property.

Effective: January 1, 2007.





Day




    January 4, 2006, read first time and referred to Committee on Ways and Means.







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.
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HOUSE BILL No. 1015



    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 6-1.1-12.5; (05)IN1015.1.1. -->     SECTION 1. IC 6-1.1-12.5 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2007]:
     Chapter 12.5. Assessment Phase-in Deduction
     Sec. 1. For purposes of this chapter:
        (1) "enlarge" means to add floor area;
        (2) "rehabilitate" means to remodel, repair, or improve in any manner; and
        (3) "residential property" means real property improvements assessed as residential property under the rules of the department of local government finance.
    Sec. 2. (a) Subject to subsection (d) and section 3 of this chapter, a taxpayer that:
        (1) rehabilitates; or
        (2) enlarges;
residential property for which the taxpayer is liable for property taxes is entitled to a deduction from the assessed value of the

residential property.
    (b) A deduction under this section is available in:
        (1) the year in which the rehabilitation or enlargement of the residential property results in an increased assessed value of the residential property; and
        (2) the immediately succeeding two (2) years.
    (c) The amount of the deduction that a taxpayer may receive for:
        (1) the year referred to in subsection (b)(1) equals the product of:
            (A) the increased assessed value for that year resulting from the rehabilitation or enlargement of the residential property; multiplied by
            (B) seventy-five percent (75%);
        (2) the first year referred to in subsection (b)(2) equals the product of:
            (A) the increased assessed value of the residential property determined under subdivision (1)(A) as adjusted under:
                (i) IC 6-1.1-4-4; or
                (ii) IC 6-1.1-4-4.5; multiplied by
            (B) fifty percent (50%); and
        (3) the second year referred to in subsection (b)(2) equals the product of:
            (A) the increased assessed value of the residential property determined under subdivision (1)(A) as adjusted under:
                (i) IC 6-1.1-4-4;
                (ii) IC 6-1.1-4-4.5; or
                (iii) both IC 6-1.1-4-4 and IC 6-1.1-4-4.5; multiplied by
            (B) twenty-five percent (25%).
    (d) A property owner that qualifies for a deduction for a year under:
        (1) this section; and
        (2) another statute;
based on the same rehabilitation or enlargement of a residential property may not receive a deduction for that rehabilitation or enlargement of the property under both statutes for that year.
    (e)
A taxpayer that desires to claim a deduction under this section must file a statement, on forms prescribed by the department of local government finance, with the auditor of the county in which the residential property is located. The statement must be filed during the twelve (12) months before May 11 of each year for which the taxpayer wishes to obtain the deduction. A

statement under this subsection may be filed in person or by mail. If mailed, the mailing must be postmarked on or before the last day for filing.
    Sec. 3. If ownership of the residential property changes:
        (1) the deduction provided under this chapter continues to apply to the residential property; and
        (2) the amount of the deduction is:
            (A) the percentage under section 2(c)(1)(B), 2(c)(2)(B), or 2(c)(3)(B) of this chapter that would have applied if the ownership of the residential property had not changed; multiplied by
            (B) the assessed value of the residential property, as determined and adjusted under section 2 of this chapter, for the year the new owner is entitled to the deduction.
    Sec. 4. The department of local government finance shall adopt rules under IC 4-22-2 to implement this chapter.

SOURCE: ; (05)IN1015.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2007] IC 6-1.1-12.5, as added by this act, applies only to property taxes first due and payable after December 31, 2007.