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
Effective: Upon passage.
January 10, 2006, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
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.