MADAM PRESIDENT:
I move
that Engrossed House Bill 1001 be amended to read as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
year unless the auditor determines that the individual is no longer
eligible for the deduction.
(d) An individual who receives a deduction provided under section
1, 9, 11, 13, 14, 16, or 17.4 of this chapter for property that is jointly
held with another owner in a particular year and remains eligible for
the deduction in the following year is not required to file a statement to
reapply for the deduction following the removal of the joint owner if:
(1) the individual is the sole owner of the property following the
death of the individual's spouse;
(2) the individual is the sole owner of the property following the
death of a joint owner who was not the individual's spouse; or
(3) the individual is awarded sole ownership of the property in a
divorce decree.
(e) A trust entitled to a deduction under section 9, 11, 13, 14, 16, or
17.4 of this chapter for real property owned by the trust and occupied
by an individual in accordance with section 17.9 of this chapter is not
required to file a statement to apply for the deduction, if:
(1) the individual who occupies the real property receives a
deduction provided under section 9, 11, 13, 14, 16, or 17.4 of this
chapter in a particular year; and
(2) the trust remains eligible for the deduction in the following
year.
agent must provide to the customer the form referred to in subsection
(c).
(c) Before June 1, 2004, the department of local government finance
shall prescribe the form to be provided by closing agents to customers
under subsection (b). The department shall make the form available to
closing agents, county assessors, county auditors, and county treasurers
in hard copy and electronic form. County assessors, county auditors,
and county treasurers shall make the form available to the general
public. The form must:
(1) on one (1) side:
(A) list each benefit;
(B) list the eligibility criteria for each benefit; and
(C) indicate that a new application for a deduction under
section 1 of this chapter is required when residential real
property is refinanced;
(2) on the other side indicate:
(A) each action by; and
(B) each type of documentation from;
the customer required to file for each benefit; and
(3) be printed in one (1) of two (2) or more colors prescribed by
the department of local government finance that distinguish the
form from other documents typically used in a closing referred to
in subsection (b).
(d) A closing agent:
(1) may reproduce the form referred to in subsection (c);
(2) in reproducing the form, must use a print color prescribed by
the department of local government finance; and
(3) is not responsible for the content of the form referred to in
subsection (c) and shall be held harmless by the department of
local government finance from any liability for the content of the
form.
(e) A closing agent to which this section applies shall document its
compliance with this section with respect to each transaction in the
form of verification of compliance signed by the customer.
(f) A closing agent is subject to a civil penalty of twenty-five dollars
($25) for each instance in which the closing agent fails to comply with
this section with respect to a customer. The penalty:
(1) may be enforced by the state agency that has administrative
jurisdiction over the closing agent in the same manner that the
agency enforces the payment of fees or other penalties payable to
the agency; and
(2) shall be paid into the property tax replacement fund.
A closing agent is not liable for any other damages claimed by a
customer because of the closing agent's mere failure to provide the
appropriate document to the customer.
(g) The state agency that has administrative jurisdiction over a
closing agent shall:
SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2009]: Sec. 2. (a) Except as otherwise provided in
section 5 of this chapter, an individual who on March 1 of a particular
year either owns or is buying a homestead under a contract that
provides the individual is to pay the property taxes on the homestead
is entitled each calendar year to a credit against the property taxes
which the individual pays on the individual's homestead. However,
only one (1) individual may receive a credit under this chapter for a
particular homestead in a particular year.
(b) The amount of the credit to which the individual is entitled
equals the product of:
(1) the percentage prescribed in subsection (d); multiplied by
(2) the amount of the individual's property tax liability (limited
only for assessment dates before January 16, 2008, as that term
is defined in IC 6-1.1-21-5) which that is
(A) attributable to the homestead during the particular
calendar year. and
(B) determined after the application of the property tax
replacement credit under IC 6-1.1-21.
(c) For purposes of determining that part of an individual's property
tax liability that is attributable to the individual's homestead, all
deductions from assessed valuation which the individual claims under
IC 6-1.1-12 or IC 6-1.1-12.1 a deduction from assessed value under
IC 6-1.1-12-1 for property on which the individual's homestead is
located must be applied first against the assessed value of the
individual's homestead before those deductions are applied against any
other property. A homestead credit granted under this chapter
applies before any additional credits granted under this article or
IC 6-3.5 in the manner prescribed by the department of local
government finance.
(d) The percentage of the credit referred to in subsection (b)(1) is as
follows: for assessment dates before January 16, 2008, twenty
percent (20%).
YEAR PERCENTAGE
OF THE CREDIT
1996 8%
1997 6%
1998 through 2002 10%
2003 through 2005 20%
2006 28%
2007 and thereafter 20%
The percentage of the credit referred to in subsection (b)(1) is the
following for assessment dates after January 15, 2008:
(1) Ninety percent (90%), if the individual's household income
is less than thirty-five thousand dollars ($35,000).
(2) Seventy-five percent (75%), if the individual's household
income is at least thirty-five thousand dollars ($35,000) but
less than fifty thousand dollars ($50,000).
(3) Sixty-two percent (62%), if the individual's household
income is at least fifty thousand dollars ($50,000) but less than
seventy-five thousand dollars ($75,000).
(4) Fifty-two percent (52%), if the individual's household
income is at least seventy-five thousand dollars ($75,000) but
less than one hundred thousand dollars ($100,000).
(5) Forty percent (40%), if the individual's household income
is one hundred thousand dollars ($100,000) or more.
However, the percentage credit allowed in a particular county for a
particular year shall be increased if on January 1 of a year an ordinance
adopted by a county income tax council was in effect in the county
which increased the homestead credit. The amount of the increase
equals the amount designated in the ordinance.
(e) Before October 1 of each year, the assessor shall furnish to the
county auditor the amount of the assessed valuation of each homestead
for which a homestead credit has been properly filed under this chapter.
(f) The county auditor shall apply the credit equally to each
installment of taxes that the individual pays for the property. as
provided under section 7 of this chapter.
(g) Notwithstanding the provisions of this chapter, a taxpayer other
than an individual is entitled to the credit provided by this chapter if:
(1) an individual uses the residence as the individual's principal
place of residence;
(2) the residence is located in Indiana;
(3) the individual has a beneficial interest in the taxpayer;
(4) the taxpayer either owns the residence or is buying it under a
contract, recorded in the county recorder's office, that provides
that the individual is to pay the property taxes on the residence;
and
(5) the residence consists of a single-family dwelling and the real
estate, not exceeding one (1) acre, that immediately surrounds
that dwelling.
January 15, 2008, by the percentage certified by the department of
state revenue if the individual provides to the county auditor with
the individual's payment a copy of the homestead credit percentage
determination made by the department of state revenue. The
individual may obtain a refund of any amount paid in excess of the
amount due after applying the individual's homestead credit by
submitting an application for a refund that includes a copy of the
homestead credit percentage determination made by the
department of state revenue.
(d) The county auditor shall include in the statements issued or
transmitted under IC 6-1.1-22-8 or IC 6-1.1-22.5 instructions on
how to apply a credit granted under this chapter.
(e) The department of local government finance may adopt rules
under IC 4-22-2 and prescribe standards and procedures to
implement this chapter.
December 31, 1982; plus
(ii) the sum of any increases in property tax levies of taxing
units of the county that result from any other appeals
described in IC 6-1.1-18.5-13 filed after December 31,
1983; plus
(iii) IC 6-1.1-18.6-3 (children in need of services and
delinquent children who are wards of the county) (before its
repeal); minus
(C) the total amount of property taxes imposed for the stated
assessment year by the taxing units of the county under the
authority of IC 12-1-11.5 (repealed), IC 12-2-4.5 (repealed),
IC 12-19-5, or IC 12-20-24; minus
(D) the total amount of property taxes to be paid during the
stated assessment year that will be used to pay for interest or
principal due on debt that:
(i) is entered into after December 31, 1983;
(ii) is not debt that is issued under IC 5-1-5 to refund debt
incurred before January 1, 1984; and
(iii) does not constitute debt entered into for the purpose of
building, repairing, or altering school buildings for which
the requirements of IC 20-5-52 (repealed) were satisfied
prior to January 1, 1984; minus
(E) the amount of property taxes imposed in the county for the
stated assessment year under the authority of IC 21-2-6
(repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a
cumulative building fund whose property tax rate was initially
established or reestablished for a stated assessment year that
succeeds the 1983 stated assessment year; minus
(F) the remainder of:
(i) the total property taxes imposed in the county for the
stated assessment year under authority of IC 21-2-6
(repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a
cumulative building fund whose property tax rate was not
initially established or reestablished for a stated assessment
year that succeeds the 1983 stated assessment year; minus
(ii) the total property taxes imposed in the county for the
1984 stated assessment year under the authority of IC 21-2-6
(repealed) or any citation listed in IC 6-1.1-18.5-9.8 for a
cumulative building fund whose property tax rate was not
initially established or reestablished for a stated assessment
year that succeeds the 1983 stated assessment year; minus
(G) the amount of property taxes imposed in the county for the
stated assessment year under:
(i) IC 21-2-15 (before its repeal) or IC 20-46-6 for a capital
projects fund; plus
(ii) IC 6-1.1-19-10 (before its repeal) or IC 20-46-3 for a
racial balance fund; plus
IC 12-19-7-4(b) (as effective before March 16, 2004) and
IC 12-19-7-4 (as effective after March 15, 2004); and
(ii) the amount of property taxes imposed in the county
attributable to appeals granted under IC 6-1.1-18.6-3 (before
its repeal) that is included in the amount determined under
IC 12-19-7-4(a) STEP SEVEN (as effective January 1,
1995) for property taxes payable in 1995, or the amount
determined under IC 12-19-7-4(b) (as effective before
March 16, 2004) and IC 12-19-7-4 (as effective after March
15, 2004) for property taxes payable in each year after 1995;
plus
(2) all taxes to be paid in the county in respect to mobile home
assessments currently assessed for the year in which the taxes
stated in the abstract are to be paid; plus
(3) the amounts, if any, of county adjusted gross income taxes that
were applied by the taxing units in the county as property tax
replacement credits to reduce the individual levies of the taxing
units for the assessment year, as provided in IC 6-3.5-1.1; plus
(4) the amounts, if any, by which the maximum permissible ad
valorem property tax levies of the taxing units of the county were
reduced under IC 6-1.1-18.5-3(b) STEP EIGHT for the stated
assessment year; plus
(5) the difference between:
(A) the amount determined in IC 6-1.1-18.5-3(e) STEP FOUR;
minus
(B) the amount the civil taxing units' levies were increased
because of the reduction in the civil taxing units' base year
certified shares under IC 6-1.1-18.5-3(e).
(h) "December settlement sheet" means the certificate of settlement
filed by the county auditor with the auditor of state, as required under
IC 6-1.1-27-3.
(i) "Tax duplicate" means the roll of property taxes that each county
auditor is required to prepare each year under IC 6-1.1-22-3.
(j) "Eligible property tax replacement amount" is, except as
otherwise provided by law, equal to the sum of the following:
(1) Sixty percent (60%) of the total county tax levy imposed by
each school corporation in a county for its general fund for a
stated assessment year imposed on tangible property, except
homesteads.
(2) Twenty percent (20%) of the total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed in a
county on real property for a stated assessment year, except
homesteads.
(3) Twenty percent (20%) of the total county tax levy (less sixty
percent (60%) of the levy for the general fund of a school
corporation that is part of the total county tax levy) imposed in a
county on tangible personal property, excluding business personal
property and homesteads, for an assessment year.
(k) "Business personal property" means tangible personal property
(other than real property) that is being:
(1) held for sale in the ordinary course of a trade or business; or
(2) held, used, or consumed in connection with the production of
income.
(l) "Taxpayer's property tax replacement credit amount" means,
except as otherwise provided by law, the sum of the following:
(1) Sixty percent (60%) of a taxpayer's tax liability in a calendar
year for taxes imposed by a school corporation for its general fund
for a stated assessment year on tangible property other than a
homestead.
(2) Twenty percent (20%) of a taxpayer's tax liability for a stated
assessment year for a total county tax levy (less sixty percent
(60%) of the levy for the general fund of a school corporation that
is part of the total county tax levy) on real property other than a
homestead.
(3) Twenty percent (20%) of a taxpayer's tax liability for a stated
assessment year for a total county tax levy (less sixty percent
(60%) of the levy for the general fund of a school corporation that
is part of the total county tax levy) on tangible personal property
other than business personal property or a homestead.
(m) "Tax liability" means tax liability as described in section 5 of
this chapter.
(n) "General school operating levy" means the ad valorem property
tax levy of a school corporation in a county for the school corporation's
general fund.
(o) "Board" refers to the property tax replacement fund board
established under section 10 of this chapter.
(p) "Homestead" refers to a homestead (as defined in
IC 6-1.1-20.9-1) or tangible property described in IC 6-1.1-20-2(g).
The term includes residential property that would qualify as a
homestead (as defined in IC 6-1.1-20.9-1) or tangible property
described in IC 6-1.1-20-2(g) if an individual or owner filed for a
homestead credit under IC 6-1.1-20.9.".
Delete pages 2 through 294.
dwelling during the taxable year; or
(2) two five thousand five hundred dollars ($2,500). ($5,000).
(b) Notwithstanding subsection (a), a husband and wife filing a joint
adjusted gross income tax return for a particular taxable year may not
claim a deduction under this section of more than two five thousand
five hundred dollars ($2,500). ($5,000).
(c) The deduction provided by this section does not apply to an
individual who rents a dwelling that is exempt from Indiana property
tax.
(d) For purposes of this section, a "dwelling" includes a single
family dwelling and unit of a multi-family dwelling.