January 25, 2008





SENATE BILL No. 267

_____


DIGEST OF SB 267 (Updated January 24, 2008 11:50 am - DI 73)



Citations Affected: Noncode.

Synopsis: Income tax deduction for property tax. Provides that an individual may claim a deduction for state income tax purposes for property taxes that: (1) were imposed on the individual's principal place of residence for the March 1, 2006, assessment date or the January 15, 2007, assessment date; (2) are due after December 31, 2007; and (3) are paid in 2008 on or before the due date for the property taxes.

Effective: January 1, 2008 (retroactive).





Charbonneau, Rogers, Zakas




    January 10, 2008, read first time and referred to Committee on Appropriations.
    January 24, 2008, amended, reported favorably _ Do Pass.






January 25, 2008

Second Regular Session 115th General Assembly (2008)


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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SENATE BILL No. 267



    A BILL FOR AN ACT concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: ; (08)SB0267.1.1. -->     SECTION 1. [EFFECTIVE JANUARY 1, 2008 (RETROACTIVE)] (a) This SECTION applies only to an individual that in 2008 paid property taxes that:
        (1) were imposed on the individual's principal place of residence for the March 1, 2006, assessment date or the January 15, 2007, assessment date;
        (2) are due after December 31, 2007; and
        (3) are paid on or before the due date for the property taxes.
    (b) As used in this SECTION, "adjusted gross income" has the meaning set forth in IC 6-3-1-3.5.
    (c) An individual described in subsection (a) is entitled to a deduction from adjusted gross income for a taxable year beginning after December 31, 2007, and before January 1, 2009, in an amount equal to the amount determined in the following STEPS:
        STEP ONE: Determine the lesser of:
            (1) two thousand five hundred dollars ($2,500); or
            (2) the total amount of property taxes imposed on the individual's principal place of residence for the March 1,

2006, assessment date or the January 15, 2007, assessment date and paid in 2007 or 2008.
        STEP TWO: Determine the greater of zero (0) or the result of:
            (1) the STEP ONE result; minus
            (2) the total amount of property taxes that:
                (A) were imposed on the individual's principal place of residence for the March 1, 2006, assessment date or the January 15, 2007, assessment date;
                (B) were paid in 2007; and
                (C) were deducted from adjusted gross income under IC 6-3-1-3.5(a)(17) by the individual on the individual's state income tax return for a taxable year beginning before January 1, 2008.
    (d) The deduction under this SECTION is in addition to any deduction that an individual is otherwise entitled to claim under IC 6-3-1-3.5(a)(17). However, an individual may not deduct under IC 6-3-1-3.5(a)(17) any property taxes deducted under this SECTION.

SOURCE: ; (08)SB0267.1.2. -->     SECTION 2. An emergency is declared for this act.