Introduced Version






HOUSE BILL No. 1298

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 6-1.1-12-44.

Synopsis: Property tax deductions. Establishes a property tax deduction for residential rental property. Provides that the deduction is equal to the lesser of: (1) $35,000; or (2) one-half of the assessed value of the residential rental property and the land containing the residential rental property.

Effective: Upon passage.





McClain




    January 10, 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. 1298



    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 6-1.1-12-44; (06)IN1298.1.1. -->     SECTION 1. IC 6-1.1-12-44 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 44. (a) As used in this section:
        (1) "department" refers to the department of local government finance; and
        (2) "principal rental dwelling" means residential improvements to land:
            (A) for which the homestead credit under IC 6-1.1-20.9 does not apply; and
            (B) that an individual with a leasehold interest in the residential improvements uses as the individual's principal place of residence.
The term "principal rental dwelling" does not include a facility licensed under IC 16-28.
    (b) The owner of a building that contains one (1) or more principal rental dwellings is entitled to a deduction
from the assessed value of the building and the land on which the building

is located. The amount of the deduction equals the lesser of:
        (1) thirty-five thousand dollars ($35,000); or
        (2) one-half (1/2) of the assessed value of the building (or the part of the building containing the principal rental dwellings) and the land on which the building is located.
    (c) A certificate of occupancy that complies with this subsection is prima facie evidence that a building and the land on which the building is located contain 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;
        (2) be signed under penalties of perjury by the owner of the building containing a rental unit or by 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; or
            (B) with respect to a building that contains more than one (1) rental unit, substantially all the units in the building were used as principal rental dwellings;
        on the assessment date for which the deduction under this section applies.
    (d) To obtain the deduction under this section, the owner of the building containing a principal rental dwelling must file a certified application in duplicate, on forms prescribed by the department, with the auditor of the county in which the property is subject to assessment. The certified application must be filed before May 11 of the year containing the assessment date to which the application applies.
    (e) 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 for that portion of the building for which the owner is eligible to receive the homestead credit or the standard deduction.
    (f) 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.

SOURCE: ; (06)IN1298.1.2. -->     SECTION 2. [EFFECTIVE UPON PASSAGE] (a) IC 6-1.1-12-44, as added by this act, applies to property taxes first due and payable in 2007.
    (b) Notwithstanding IC 6-1.1-12-44(d), as added by this act, a certified application must be filed under that subsection before July 1, 2006, to claim a deduction under IC 6-1.1-12-44, as added by this act, for property taxes first due and payable in 2007.
    (c) This SECTION expires January 1, 2008.

SOURCE: ; (06)IN1298.1.3. -->     SECTION 3. An emergency is declared for this act.